Profit margin is simply profit divided by sale Baskin Robbins 2009 This means

Profit margin is simply profit divided by sale baskin

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Profit margin is simply profit divided by sale (Baskin Robbins, 2009). This means that there are as many measures of profit margin as there are measures of profit. Baskin Robbins will simply find their profit margin by dividing the total sales by the total cost. Baskin Robbins can compare to other companies in the same industry, this will help Baskin Robbins identify trends in the company for year to year. One fact that should be known should be operating margin, which will measure Baskin Robbins pricing strategy and operating efficiency. Baskin Robbins measure the operating margin will be the operating income divided by the net sales. Operating margin is a measurement of the proportion of a company’s revenue that is left over after variable cost, such as wages, raw material have been paid (Baskin Robbins, 2009). In order for Baskin Robbins to be successful their operating margin has to be able to pay the fixed costs. To understand operating margin that if a Baskin Robbins is operating at a 10% operating margin that for every dollar that they make in sales, Baskin Robbins will make .10 of that dollars. a. Profit margin Profit margin is simply profit divided by sales. This means that there are as many measures of profit margin as there are measures of profit. Baskin Robbins will simply find their profit margin by dividing the total sales by the total cost. Baskin Robbins can compare to other companies in the same industry, this will help Baskin Robbins identify trends in the company for year to year. One fact that should be known should be operating margin, which will measure Baskin Robbins pricing strategy and operating
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efficiency. Baskin Robbins will measure the operating margin will be the operating income divided by the net sales. Operating margin is a measurement of the proportion of a company’s revenue that is left over after variable cost, such as wages, raw material have been paid. In order for Baskin Robbins to be successful their operating margin has to be able to pay the fixed costs. To understand operating margin that if a Baskin Robbins is operating at a 10% operating margin that for every dollar that they make in sales, Baskin Robbins will make .10 of that dollars. b. Market share Market Share is the portion or the percentage of sales that a particular product or service that are controlled by a company. Baskin Robbins would use the market share to determine their competitive strengths and weaknesses in a given region to compare itself to other companies in the same region. It also gives Baskin Robbins an accurate assessment of how they are performing from year to year. Baskin Robbins is among the top three ice cream industry are; Dairy Queen owns 40% of the market share and Baskin Robbins own 9 % of the market, but Cold Stone Creamy has tripled its sales over the same period and grew its market share to about 7.5 percent, which has narrow gap with Baskin Robbins (Boston Globe, 2007). One way that Baskin Robbins is trying to increase its market share is by adjusting the approach of servicing customers. Baskin Robbins had
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  • Spring '08
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  • Marketing, ice cream, Baskin Robbins, The Baskin Robbins

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