Business Proposal

1487 Words6 Pages
Final Business Proposal Cynthia Mustani ECO/561 January 12, 2015 Introduction Little Rock, AR is well known for having some of the best barbecue in the south. In fact, Little Rock has won several awards for its amazingly delicious barbecue dishes. The product that I have chosen to develop is a homemade barbecue sauce, CeCe’s Famous BBQ Sauce, which brings a little piece of the south to everyone’s home. Examination of Elasticity of Demand and Market Structure Cece’s Famous BBQ Sauce is a homemade traditional sauce carefully made with the freshest ingredients. Southerners take great pride in barbecuing and there is a current debate as to who has the best BBQ sauce. There are a wide variety of BBQ sauces readily available to…show more content…
Variable costs will include packaging, ingredients, shipping, and labor which will vary depending on production volume. The cost taken for the production and other operations mainly depend on the scale of production and the location of facilities. Differentiation I believe this product has the ability to differentiate by growing into a product line which will consist of different flavors of BBQ sauces and other product lines such as BBQ flavored potato chips and BBQ baked beans. Marketing this product will play a huge role in its success. It will be the difference between selling BBQ sauce and selling the brand Cece’s Famous BBQ sauce, which is my goal. By using aggressive marketing techniques, product differentiation along with brand recognition, the business will stand out among its competitors. Increasing Revenue Understanding the role of Price equilibrium helps maximize revenue in any business. A smart business owner will often compare his or her prices to competitor’s prices with the main objective being to create an increase in demand while keeping supply constant. Maximizing profits is a short-term approach using the marginal-revenue-marginal –cost approach (Brue, Flynn, & McConnell, 2009). This measures how increasing output contributes to revenue. Cece’s Famous BBQ sauce company’s intentions are to operate where Marginal Revenue (MR) is higher than Marginal Cost (MC) which will translate into greater revenues and reduced costs per
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