Valued Historical Cost Example For Free - Free Essay Example

Sample details Pages: 8 Words: 2322 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? It is a system of accounting which is based on the principle that assets should be valued at historical cost or historical cost is the original monetary value of an economic item. Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition. Don’t waste time! Our writers will create an original "Valued Historical Cost Example For Free" essay for you Create order The balance sheet value of the item may therefore differ from the true value. It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, revaluation of fixed assets. The advantages of historical-cost accounting are that it is relatively objective, easy to apply, difficult to falsely manipulate, and suitable for audit verification. In times of high inflation, however, the results of historical-cost accounting can be misleading as profit can be overstated, assets understated in terms of current values, and capital maintenance is only concerned with the nominal amount of the capital invested rather than its purchasing power. Because of these defects it is argued that historical-cost accounting is of little use for decision making, but attempts to replace it with such other methods as current-cost accounting have failed. Conventionally financial accounts are based on historic cost; that is, assets are valued in the balance sheet at their cost of acquisition. Expenses are also charged against revenues in the determination of profit based upon the historic cost of the assets used up in generating the revenues. This system was developed long ago during decades of relatively stable price levels and continued to be used before the consequences of inflation on the preparation of financial accounts were recognised. The principle advantage claimed for historical cost accounting (HCA) (and incidently until the development of CPP and CCA accounting was simply referred to as accounting, it only being recently that the traditional form of accounting has been distinguished by calling it HCA) is that it enables the preparation of accounts on an objective basis. However, it will suggest that in considering techniques for allowing for inflation the accounting profession should not be eager to let objectivity be the overriding consideration when formulating ground rules for the preparation of financial statements, since even the existing system of HCA frequently proves to be wanting as far as the possibility of achieving pure objectivity is concerned. Current cost measurements may provide useful information about assets that are held by a business as well as those that are used or sold. If the current cost that is the specific price of an asset has increased, it may be because the asset can be used to earn more than previously therefore people are willing to pay more. Thus, increase in the current cost of assets held by a company may provide a clue to the increases in the cash flow and earnings that the assets will be able to generate in the future. It is likely to be a better basis for assessing future cash flow than historical cost information but it must be interpreted with an appreciation of the economics of the industry in which the business concerned operates. Purchasing Power of Money Under inflation (or deflation) the value of money, its general purchasing power, is the reciprocal or the general level of prices. If all prices rise at the same rate, the holder of a given set of goods would gain by the rise in price and lose by the fall in the value of the money unit in which prices are expressed; the gain and the loss would be offsetting. But nothing would offset the loss in the purchasing power of money in respect of net monetary items (cash and receivables less payables), which are commonly exchangeable at their nominal amounts. In the more general case, the prices of non-monetary assets do not vary uniformly, nor consistently with changes in the value of money; and the asset compositions of firms, as between monetary and non-monetary assets, vary. These variations have differential impacts on firms. Further, a change in the price of any good may be in part due to a change in the relativities of the prices of goods, and in part due to a change in the general purchasing power of money. To what extent those changes affect severally any pri ce is unknown, even to buyers and sellers; and they, in any case, deal on the basis of prices as they stand from time to time whatever their causes. But periodical income calculation was different matter. To know what person could consume or firms could distribute in a period without impairing their financial capitals would be a guide to prudent behavior. According to Sweeney advanced stabilized accountingfor that purpose (various papers, and in 1936, Stabilised Accounting). Stabilised accounting dealt with income calculation by reference to the maintenance of real capital, dated general purchasing power, deriving the stabilized accounts from customary HCA accounts by use of a general price index. Such schemes would later be called Current Purchasing Power or CPP accounting. HCA does not yield a balance sheet representing the moneys worth of non-monetary assets. Where depreciation charges are based on calculations and inventory charges are based on any such rule as valuation a t the lower of cost and market, neither those charges nor the resulting asset balances are price indicative of moneys worth. Only to dated selling prices and dated amounts of net monetary assets may a price index be applied, if the object is to discover a present purchasing power equivalent of an opening stock of general purchasing power equivalent of an opening stock of general purchasing power, and then a gain or loss on the change in the value of money. Another main criticism of historical accounting method is its obvious flaws in times of inflation. The validity of historic accounting rests on the assumption that the currency in which transactions are recorded remains stable, i.e. its purchasing power remains the same over a period of time. Another main point with regards to inflation is rise in prices for an asset. An asset purchased at a point in time may be expensive in future. The traditional accounting principles record all assets at an original cost and continue to use these historic figures throughout the assets life, while economists make a more intelligible assumption that money has a time-value attached to it. (Thompson, 2010, pp.1) (https://eduarticles.com/advantages-and-disadvantages-of-historical-cost-accounting) Changes in Prices of Inventories and Property, Plant and Equipment Held Changes in the current costs of inventories, property, plant and equipment while they are held awaiting use or sale are often called holding gains or holding losses. They arise under the current cost approach. For example; Current cost operating income of $0.80, the company would have a nominal holding gain of $0.20 because the current cost of the inventory item increased from $1.00 to $1.20 while the company held it. Of the $0.20 holding gain, it may be said the $0.10 corresponds to or represents the effect of general inflation of 10% and the remaining of $0.10 represent a holding gain net of inflation, some times referred to as a real holding gain or a constant dollar holding gain. Holding gains (or losses) may be either realized-meaning that the asset has been sold or used or they would be unrealized which mean that the asset is still held by the company. Realized holding gains are included in operatin g income in the basic (historical cost) financial statements but they are not shown separately. These gains include what are often called inventory profits. Unrealized holding gains are not reflected or included in the traditional income statement. Further, the realized holding gains that are included are those realized in the current period, without regard to whether they result from price changes in the current period. Under current cost accounting in Statement 33, realized and unrealized holding gains and losses that result from changes in the current period in prices of inventory and property, plant and equipment are reported as increases and decreases in current cost amounts. Holding gains or losses are generally excluded from operating income. Gain or Loss in Purchasing Power on Net monetary Items This component may be described in various ways, such as gain from decline in purchasing power of net amounts owed or loss from decline in purchasing power of net monetary a ssets held. In this book we will refer to it simply as the monetary gain or loss; it is a measure of the effect of holding monetary assets or liabilities. Monetary assets include cash and claims to receive a fixed amount of money (such as receivables). Holders of monetary assets experience a loss of purchasing power due to inflation because the amount of goods and services that can be bought with a fixed sum is reduced by inflation. Monetary liabilities are obligations to pay fixed amounts of money in the future. A borrower experiences a gain from inflation because the fixed amount of money required to repay the loan diminishes in purchasing power. A brief example illustrates this point. Suppose that a company holds cash of $1.00 throughout a year while the CPI increases by 10% so that dollar will buy less at year-end than it would have bought on January 1. A 10 percent increase in the CPI will indicates that it would take $1.10 at year end to match the purchasing power of the or iginal $1.00. Therefore, the company lost $0.10 worth of purchasing power measured in end of year dollar. Companies that have more monetary assets than liabilities will show a net loss of purchasing power when there is inflation. If deflation occurred- if the general level of prices fell- they would have a gain. A majority of nonfinancial companies (that is, excluding banks, insurance companies, etc) have more monetary liabilities than assets. However, Historical cost accounts, in general, simply show the acquisition cost or the depreciated historical cost of a companys assets and not their current value, let alone the value of the company as a whole. Therefore, historical cost accounting do not provide an absolute measure of success of the company. In times of inflation such companies show a net gain in purchasing power, reflecting the fact that they will be able to repay with dollars of reduced purchasing power. In addition effects of inflation may not be the same for all th e companies in the market and historical cost accounts become almost unhelpful when comparing corporate performance. Causes of Price Level Changes It is useful to ask whether price level changes come solely from inflationary or deflationary effects. And the answer would be no and it is found that price level changes are made up from three major components. These are: scarcity ,i.e. supply and demand factors; changes in technology and cost factors. From the combination of the effects of these three factors will come the total price level change in which it is virtually impossible to isolate completely any effects of the other factors from inflationary or deflationary component. Because any of these factors may be working on price levels even in times of general price stability there will still be changes in relative prices. For example, The retail price index might remain stable, yet there may have been an increase in the price of services, an area where production is generally labour intensive, which was compensated for by decrease in the price of consumer durables, produced using capital intensive methods of production. Thus it becomes important that any system developed to adjust accounts for changes in price levels must be able to cope with the possibility of prices in different factor and product groupings changing at different rates. In taxation also can be impact or affect the historical cost accounting, for example, the company tax charge is based on its the accounting profit, the higher the amount and that will be paid in tax. The historical cost accounting does not constitute a suitable basis for the computation of the taxation obligation of business. However, the use of historical cost accounting as the basis for taxation it means that in period of rising prices the proportion of the increase in companys wealth which is taken by taxation might be very much larger than that which is implied by the nominal rate of taxation. For example, the ra pid of inflation of the mid-1970 made government and others very much aware of the inadequacy of historical cost accounting for the purpose of taxation. Edwards Bell proposed the separation of gains (or losses) into operating and holding gains. Holding gains, said to be capital gains, are the differences between selling prices while goods are held. Current operating profit is the difference between the prices at which goods are sold and their current costs at the time of sale, aggregates of both of which were said to be expressed in average of the year dollars (currency). The distinction was made necessary by the determination to distinguish current operating profit, realisable cost savings, realise cost savings and capital gains and to calculate realised profit and business profit, two concepts of money profit. Also which given the occurrence of inflation, price level changes were considered to play a subsidiary role. Inflation gave rise to fictional gains or losses which had t o be eliminated to obtain real realised profit and real business profit. They also rejected HCA and CPP, in favour of recording particular price changes as they occur (Edwards Bell, 1961, p.17). They considered firms as adaptive entities in an uncertain world, adjusting their operations and arrangements to shifts in the price-indications of changes in internal and external conditions. The options for discovering the consequences of past decision/event (Historical cost) they considered to be the exit prices and the entry prices (current costs) of assets at the terminal dates of successive periods. The use of exit prices would said realizable profit and the use of entry prices would be a business profit.

Managerial Accounting Quizes and Midterm Essay example

| Question : | (TCO 2) Bubba’s Crawfish Processing Company uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $2,250,000 and direct labor hours are budgeted at 415,000 hours. Actual overhead was $2,200,000 and actual direct labor hours worked were 422,000. (a) Calculate the predetermined overhead rate. (b) Calculate the overhead applied. (c) Determine the amount of overhead that is over/underapplied. | | | Student Answer: | | a) Calculate the predetermined overhead rate. 2250000/415000 = 5.4217 per hour (b) Calculate the overhead applied. 422000 x 5.4217 = 2287952 (c) Determine the amount of overhead that is over/under applied. 2287952-2200000 = 87952 over†¦show more content†¦Beginning balance in Finished Goods $ 17,000 Ending balance in Finished Goods 15,200 Beginning balance in Work in Process 2,500 Ending balance in Work in Process 1,836 Selling expenses 123,000 General and administrative expenses 89,000 Direct material cost 54,500 Direct labor cost 66,000 Manufacturing overhead 21,400 Sales 385,000 Prepare a schedule of cost of goods manufactured. | | | Student Answer: | | Snappy’s Surgical shears Company Cost of Goods Manufactured Schedule For the Month Ending in January 31, 20XX Direct Material $54,500 Direct Labour $66,000 Manufacturing Overhead $21,400 Total manufacturing cost $141,900 Add : Work in process inventory (Beginning) $2,500 Less : Work in process inventory (Ending) -$1,836 Cost of goods manufactured for the month $142,564 | | Instructor Explanation: | Sappy’s Surgical Shears Schedule

Case study on tata nano free essay sample

Sunsilk was introduced in 1989 in Pakistan with three variants related to hair types. Endorsement of a hair stylist was the first step in building the image of the brand as a hair care expert. With the competition from local and multinational companies due to rationalization of excise duties, Sunsilk has not been able to gain the desired share in the market. To strengthen the brand, LBPL decided to re-launch Sunsilk with a premium range consisting of four variants in January 2000. In 2001, due to the constant research of their affiliated hair care institutes, the need of a shampoo for oily hair was observed and they launched a new variant of Sunsilk having citrus extracts. 1. 2 Background: LBPL, the largest consumer goods producing company in Pakistan, was incorporated here in 1948 and started building their factory at Rahim Yar Khan. This factory was inaugurated formally in 1951 by the then Governor General of Pakistan. LBPL moved into the personal care product business in 1981. It has gained a major market share due to the introduction of quality brands likeSunsilk, Lifebuoy, Lux and Fair Lovely. Lever Brothers was the recipient of Management Association of Pakistan (MAP) and Karachi Stock Exchange awards in recognition of its performance. For the purpose of MAP award, it was judged the best among the companies that have performed well in the areas of Financial Discipline, Management practices such as Risk Management, Corporate Governance, Social Responsibility and Research Development. Lever Brothers is committed to investment and modern production facilities thereby contributing to economic growth and employment opportunities. 1. 3 Statement of Problem: Their main target market is females between the ages group 16-40 belonging to the two upper income classes. But in their promotional activities, they cover the whole market irrespective of these classes. Competitors’ Review: The major competitor of Sunsilk in the rural areas is Bio Amla while in the urban areas, Sunsilk faces cutthroat competition with PG. The main advantage of Bio Amla is its Herbal composition and low price, which attract the rural market, but in terms of quality, they are far behind Sunsilk. In urban areas, Sunsilk is acting as a market challenger against PG. Sunsilk has got the advantage of keeping their prices lower than PG shampoos but PG has captured a bigger share of the market due to its intense promotional activities. 1. 4 Objectives of the study: 1. To carry out the review of literature on brand, brand awareness and consumer behavior. 2. To study the socio economic characteristics of women consumers in Bangalore. 3. To identify the factors influencing brand awareness of Sunsilk shampoo. 4. To identify and interpret the factors involved in quality and benefits offered in the shampoo product. 5. To know the impact of brand awareness in sales improvement of the shampoo product. 1. 5 Research Methodology: Literature survey has been carried out using research journals, books and websites. Socio economic stratum of women consumers have been identified using socio economic classification grid during personal interview at individual households. Factors influencing brand awareness of shampoo products have been analyzed with the data collected from questionnaire. Comparative study has been carried out based on advertisement awareness with the competitor. Pareto analyses have been used to identify the major quality problems in the shampoo product. 1. 6 Company Objectives: Neither our own nor our major competitors’ objectives are simple or obvious. There are many choices between short term and long-term profit, between growth and cash flow, between growth in assets and growth in earnings, between proportions of earnings paid to share holders as dividends or reinvested. It is reasonable to assume that these different objectives of different competitors predetermine some of their strategies and tactical behavior. Assess the concept of product acceptability, credibility and perceived benefits. Examine consumer’s assessment of the product, in terms of product performance and related benefits. Explore consumers’ reaction towards packaging. Understand consumers’ perception of quality advertisement in terms of its impact. 2. Chapter II 2. 1 Mission Statement: The New Sunsilk Shampoo aims at fulfilling the needs of its target market by offering a high quality, assessment of the concept in terms of its acceptability, credibility and perceived benefits, that it offers a healthy choice shampoo alternative to the targeted consumer. The theme of the product shall be anchored around the motto: â€Å"Softness, shine and manageability of Hair† Figure 1 2. 2 Packaging: The packaging design for the New Sunsilk range is extremely exciting and has been developed by Brown Inc. UK. The packaging makes the brand look expert and modern. This packaging makes the brand look more contemporary and hi-tech. It ensures more emphasis on the variants that have already been a part of the product but never been communicated to the customer that well. This new packaging has clearly identified that there is a separate product for each hair type. Currently, the range consists of: Yellow Sunsilk with Bio Proteins from Vegetable Extracts: Normal hair needs wholesome nourishment. New Sunsilk with Bio Protein extracted from Vegetable milk has nutrients that deeply penetrate each hair strand, to nourish it leaving hair strong and beautiful. Black Sunsilk with Melanin from Plant Extracts: Dull hair needs a rich black shine. New sunsilk with Melanin extracted from plants serves this purpose very effectively. It helps in the growth and retention of the black color of hair, giving it a rich black shine. . Green Sunsilk with Fruitamins Vitamins from fruit Extracts: Thin and limp hair needs extra body and volume. New sunsilk with Fruitamins has natural extracts from fruit that contains Vitamins. These vitamins help in giving extra body, shine and amazing manageability to the thinning and lifeless hair. Pink Sunsilk with essential Oils from Flower Extracts: Dry hair needs wholesome conditioning, extra shine and styleability. New Sunsilk with essential oils makes the dry hair full of life. Its especial ingredients moisturize each hair right to its tips leaving it shiny and beautiful. Orange Sunsilk with active nutrients from Citrus Extracts: The advanced formula of orange Sunsilk is the result of the latest research. This shampoo is especially designed for oily hair type that looks flat and greasy due to the excess of moisture. New sunsilk with active ingredients from citrus extracts cleans the excess oil off hair while its nutrients deeply penetrate each hair strand to nourish it. Customer Review of Product Usage Figure 2 2. 3 Pricing Objectives: Lever claims to practice value-based pricing in which the customers’ perception of the product’s price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups. The price of RS 3 for Sunsilk shampoo sachets shows how the price also reflects a concern to make the purchase more convenient, since the rupee is dominated in this value. The primary importance of this value-based pricing is that the product demand will be much higher if its price is in line with the customer’s perception of its value. One crucial concern for value-based pricing is strict management of cost in order to be able to make a profit at the value-based price. After the initial price is determined, Lever then uses target costing in order to achieve the required profits. With the marketing plan now being termed as ‘Annual Contract’ the importance of meeting the profit margin requirements has increased. Target costing thus provides an essential tool to manage cost effectively. The characteristic of monopolistic competition typifying the market sets the threshold for pricing. This market consists of many buyers and sellers trading over a range of prices. The key element is differentiation, which allows the seller to gain market share in contrast to competitors. Given this market condition, Lever differentiates its products and also sells them in different price ranges to cover at least a large portion of the market. Also this makes Lever more sensitive to price changes of competitors’ products. Last year PG revised their prices which has increased the prices of their shampoos considerably but Sunsilk has maintained its prices and their prices are much lower than PGs’, which is a major blow to PG because being a poor country people go for products which are within the range of Rs. 100. Figure 3 2. 4 Promotion objectives: Build top of the line consumers’ awareness. Creating a personality of the brand. Besides having these general objectives, the advertising objectives are set avoiding to the advertising strategy for each product, e. g. Sunsilk advertising objectives since it was being re-launched were: To increase the usage. Conditioning benefits. Makes the hair appear clean and shiny. Imparts a feeling of freshness-due to fragrance. Easy to manage, silky, soft hair. Unique shampoo for every hair type. Effectively communicate brand promise. 2. 5 Advertisement objectives: The advertisement of a product should follow the smile approach that is: S Simple M Memorable I Interesting with relevant information L Linked to the brand E Emotionally involved and liked. The advertisement should be in line with the past ad (if any). The ad should have a good advertising idea. Advertising should meet the brief Message clearly communicated Advertising should fit the brands personality An add is usually changed after 18 months TARP(Target Audience Rating Points) 2. 6 Advertising strategy: A product’s particular advertising strategy also depends on the level of competition involved with each product. For example shampoo ads previously used to provide emotional benefits but when PG entered the shampoo market with it’s shampoo Pantene, it revamped the whole situation, Pantene ads promoted the shampoo’s functional benefits, which greatly appealed the consumers. Levers seeing this trend changed its advertising strategy for Sunsilk so that Sunsilk advertisements also promoted the shampoo’s functional benefits. Thus Lever evaluates the product’s present position in the market, the promotion objectives it wants to achieve and the level of competition involved while setting the advertising strategy for a product. Elida Hair Institute does a lot of research and they come up with innovation in the product. Elida provides credibility that Sunsilk is not locally made but it is based on a lot of research by internationally accredited institutions. Lever believes that messages about product delivered by credible sources can be very persuasive. Hence Nabila who is an hair care expert endorses Sunsilk and more value is added to the brand. Consumers relate to products itself, they can relate to a human being who consumers believe is an expert so if Nabila is an expert so is Sunsilk. Nabila a recognised and highly qualified hair stylist is used by Sunsilk in its ads because they want to bring out an expert’s image. Sunsilk has come up with a new promotional campaign GOOD HAIR DAYS in six major cities in collaboration with famous hair stylists of the country. 2. 7 Advertising Evaluation: Lever also carriers out on extensive evaluation process. Target audience rating points are used to evaluate a product. Households are monitored in various cites to get consumers response and feedback. R-Lintas carriers out in own evaluation proceeds for its advertisement. Weekly figures are presented by research department. Regarding sales which have been carried out by extensive surveys. Products manager themselves have to visit the Consumers’ View of Sunsilk Advertisements Figure 4 2. 8 Distribution Objective: â€Å"To reach as many towns and villages as we can† Lever has 150 distributors whose function is to sell to wholesalers directly. There are different distributors for different areas. They are carefully selected and their performance is constantly evaluated. They appear extremely satisfied with their channel systems and have a good rapport with them. We feel that this is essential since these are not too many levels, thereby preventing channel complexity and allowing Lever greater control. Lever’s statements were verified by our consumer survey, which revealed that the retailers were very satisfied with Lever’s distribution system, which allowed well-stocked shelves. This is an added advantage, since the consumers undergo habitual buying behavior. Sunsilk has a very good distribution network all over the country. They have struggled hard to adopt such channels that guarantee the perfect results regarding the placement of their product. These distributors are given clear instructions regarding the selection of the retailer and to make sure that the retailer; Knows about the significant characteristics of the product. Places the product along with its major competitors like PG. Displays the sachets distinctly. They give off and on offers as trade promotion incentives to their distributors. The distributors contribute to the promotion of Sunsilk by word of mouth. 2. 8. 1 Strengths Lever Brothers Pakistan Limited is one of the largest organizations in Pakistan. Company has advanced technology and well skilled professionals. The New Sunsilk Shampoo is a high quality product in terms of hair protection. The target market is educated, professionals and belongs to premium and middle class. Company totally owned, systematic distribution network, transparent communication system. Participative management style Very good distribution network all over Pakistan, in all major and small cities. 2. 8. 2 Weaknesses: Competitor has strong promotional activities. Imported brands also available in the market. Customers are offered better alternatives by the competition. 2. 8. 3 Opportunities: Population expanding at a rapid rate. Consumers are becoming more quality conscious Current capacity utilization is 80%, which can be further broadened with the increase in demand. Customer base is increasing with effective marketing. Baby shampoo is another area where Lever Brothers can make huge gains. Shampoo plus conditioner and anti-dandruff shampoos are another area where lever brothers can earn huge profits. Rural areas are a large prospective market where they can introduce Sunsilk. 2. 8. 4 Threats: Political and Economic factors. Partial Government policies. High rate of competition. Local and Foreign competition. Smuggling via Afghan Trade Transit is one of the big hurdles faced by Sunsilk. Supplies from Indonesia and Thailand is another important issue. 3. Chapter III 3. 1 Summary: This marketing plan forms the basis of the introduction of an innovative and unique productby Sunsilk. The analysis allows us to the best strategies to help our product be successfulwith the internal and external environments which we have analyzed at our bestunderstanding. Sunsilk Hair Colour Shampoo will be marketed as a unique and convenientproduct for consumers who need and want to colour their hair. And we would like tomaintain the company’s status as the 2nd brand leader in hair care industry in Pakistan. Themarketing strategies will enable us to reach the target sale ofRs 50 million by end of first year and also bring awareness to the consumers in the sixmonths about the new product, and reach at least 80% consumers in Pakistan. The hair colourindustry is currently in the growth stage and the number of people who wish to colour theirhair is growing day by day. Customer have been introduced by hair colouring products andthere is a existing industry for colour in Pakistan, but Sunsilk Hair colour Shampoo is a newinnovative product which is convenient for consumers to use and also less harmful then otherproducts available. IntroductionThis plan has been prepared as an assignment for Marketing Strategies and Operations classat London Business School of Finance. The plan will provide background information aboutthe current environment in which Hair colour products are operating in Pakistan. It will alsodiscuss the present state of hair colour products in general, which will include information onthe company and its interest in extending product range in Pakistan, and give a broader ideaof how the brand will be introduced and marketed in the current environment. Company BackgroundSunsilk is a product of United Kingdom, which was launched in 1954. Sunsilk wasintroduced by Unilever (LBPL), who are the largest consumer goods producing company inPakistan, especially in personal care products. Unilever was found in 1930 by AntoniusJohannes Jurgens and William Hulme Lever. It was incorporated here in 1948 at Rahim YarKhan. Sunsilk was introduced in 1989 in Pakistan with three different types of shampoos fordifferent hair texture. Getting Support from hair stylist was the first step in constructing theimage of the brand as a hair care expert. In beginning of introduction of Sunsilk brand, it wasbeing raided by other competitors, in which, sunsilk was not able to gain the desired share inthe market 3. 2 CONCLUSION The survey helped in understanding the consumer perception on brand awareness and position of product in the market. It was observed that consumer’s expectations were, Quality, benefits offered and packaging of shampoo product. Based on the results obtained, integrated marketing communication was suggested, as a result an improvement of 8% to 12. 6% was observed in target population. Lagging quality Attributes have been identified for the improvement of sales by 45. 39%. Suggestions towards improving brand awareness through quality attributes have been made. 3. 3 Recommendations: Lever, Pakistan realizes the huge potential of the rural markets, i. e. 72% of the total population, but has not yet developed a successful strategy to penetrate this market. The success of Levers Hindustan should be emulated, which has successfully captured the rural market by two key strategies; firstly, by developing a strong distribution infrastructure and secondly, by adapting the packaging and pricing to this market. Lever should increase the buying of raw materials from local markets so that it does not have to suffer excessively from devaluation and continuous increase in tariff rates. This would also negate the adverse affect on sales volume due to smuggled foreign product. Lever should introduce a smaller (100 ml) pack of Sunsilk shampoo in order to capture the lower income segment. Lever should enter into WEB Marketing. The Legacy Soccer Foundation sponsored mainly by Levers, should be emulated by Levers Pakistan in the area of cricket since it is the most popular sport in Pakistan. Levers could also provide consumers with a hot line number where they can call in to complain or to ask specific questions about Lever’s products. These hot line numbers can also advise consumers about their hair type and other hair related queries. Such a strategy would highlight Levers concern for the public as well as helping it to gain market share. They should increase the frequency of their advertisements on electronic and print media. They should introduce 2 in 1 composition, i. e. shampoo plus conditioner which is the demand of a huge potential market.

The Medias Influence on Adolescents Body Image free essay sample

An analysis of the effects of media on the appearance of adolescents. This paper takes a look at how the media influences the way adolescents view the ideal body image. The author examines the type of stereotypes that the media encourages and the way that this effects society. Adolescence is a time for learning and growth. This time can be easier to handle by some than others. For some it can be a revelation of new experiences and ideas, while adolescence can also be a difficult, stressful time for those trying to discover themselves. This can affect themselves as well as those around them. During this time, adolescents are likely to identify with those around them, their peers. Identifying with peers can help adolescents along by giving them the opportunity to see how others deal with problems similar to their own and by offering their own advice to those who need it. We will write a custom essay sample on The Medias Influence on Adolescents Body Image or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Along with this, adolescents are liable to worry about their body image, and may want to conform to those who have achieved the desired image. This image may be thin, muscular, or just average. Nevertheless, some adolescents will go too far to achieve this image, usually this is done by adolescent females who wish to become thin. This can be attributed to medias portrayal of women. The majority of women in ads, television and movies are thin and are seen as attractive because of this. Adolescent girls will see these women and may want their image as their own, and some will go to any lengths to acquire this. This in turn could lead to the idea that during this process of change and growing up, adolescents are often concerned about their physical image, which is influenced by the media.