Pizza Pizza recently released its financial information pertaining to its fourth quarter in the year ending Dec 31st, 2012, and things are looking rosy for the Canadian firm. Considered to be among the two highest yielding restaurant stocks in North America, the Toronto-based corporation has analysts validating its rise. One in particular, Derek Lessard of TD Securities, attributes the firm’s success to the management team and their “ability to deliver, despite … difficult operating conditions.”

This brings one to acknowledge the significance of managerial accounting. Certainly, analysts such as Lessard can say it all comes down to management, but to properly put just what “it all” is into perspective, one has to look beyond the obvious.

Large events, outdoors and otherwise (carnivals, hockey games) typically generate leagues of customers for the Canadian chain. Yet, heavy rains and flooding in the last year saw attendance falter at many of these events. Furthermore, juggernauts such as Darden (owner of Red Lobster and Olive Garden) are watching their fortune fluctuate; “[missing] earnings expectations.” Still Pizza Pizza is garnering solid gains left and right. Consciously, they are utilizing the knowledge commonly yielded from managerial accounting: internal knowledge, and they are the better for it.

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Pizza Pizza & Darden ~ Article

Growth Info ~ Article

Principles of Accounting

Having had its inception in 1851, Fruit of the Loom is known to be “one of the world’s oldest brands.” Over 160 years later, not unsurprisingly, it is feeling the pressure to keep things interesting. Commendably, it has. Recently, the public has had the chance to experience its new advertising campaign. Headed by the marketing body Crispin Porter & Bogusky, the brand is making claims about comfort but what is more integral to its new message is the sudden focus on the “power of positive underwear.” Advertising is encouraging consumers to acknowledge the benefit starting off the day with undergarments that “they think of very little,” being they are so comfortable they needn’t cross one’s mind.

Upon perusal of some news sources, this was found to be most intriguing given its relation to the material covered in class the other day. Fruit of the Loom hasn’t conceivably changed their product. Merely, their advertising focus has shifted. Now encompassing the tagline “Start Happy,” Fruit of the Loom has essentially established a new point of difference between itself and competing undergarment brands. That is to say, optimally all underwear should be comfortable. Fruit of the Loom is distinguishing itself by proffering positivity too.

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Fruit of The Loom – Main

Crispin Porter & Bogusky

The New York Times – Article

It used to be grocery store brands “once carried a stigma.” They were reserved for those who were forced to seek them out out of necessity, given a smaller budget. Since the recession, however, sales of store brands among a variety of customer segments has actually skyrocketed. This was due to a “forced frugality” many shoppers felt compelled to adopt when uncertainty hit. Even since the recession, though, store brands’ popularity don’t seem to be on the decline.

Janet Eden Harris, the senior VP of Market Force Information, divulges “[s]ometimes I think [consumers] don’t actually know what is a store brand.” Nevertheless, with  “96 percent” of consumers in a recent survey admitting they purchased private-label brands “at least some of the time,” whether they know it is a store brand or not, the important thing is that they are buying it.

 “We expect private brands will continue to grab share year over year because of investments they’ve made in enhancing quality, innovation and … marketing and promotion[.]” This is a quote from Todd Hale, VP of consumer and shopper insights at Nielsen (a global information and measurement company).  The thing to watch now is whether or not his prediction comes true.

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Groceries Are Cleaning Up in Store-Brand Aisles

Nielsen Main