Soft Drinks At Henry's Store

Given your assessment of the competitive situation, what are the pros and cons of (a) continuing the present market targeting and positioning strategy and (b) adopting the recommendation made by Foote, Cone & Belding? (make a comparison table of pros and cons for each approach).

McDonald’s make a poor business decision when they had the consumer purchase the fries as well as the drink in order to receive the promotional price. In this particular economy, if McDonald’s was smart, they would have created a new promotion and merged into it before the competitors had realized what was going on. This would have given McDonald’s a clear advantage. With this particular move, several problems were present in utilizing game theory to predict their profits. With the onslaught of fast-food corporations, McDonald’s has endless rivals in the burger world. This being the case, just reducing prices of a product will not do anything for

The New York City mayor is arguing for a healthier lifestyle by banning sugary sodas including sweet tea. Restaurants and beverage companies are fighting to keep these beverages.

Consequently, this company can expand the fruit nectar production line to attract new consumers. The down-side to utilizing this structure is that the price at retail will be significantly higher than the other modes of distribution. However, since the target consumer is not sensitive to price and have high disposable incomes, this should not pose a systemic problem for this firm.

In this case study, we will be analyzing the current position of how well Kingsford is within the marketplace and determine which of the issues are plausible causes in its drop in revenue. We will be creating a comprehensive strategy as well as a marketing plan to evaluate and adjust the matter at hand. First we will begin with identifying the issues and implementing a method to reemphasize the importance of marketing in the business. The goal is to create a marketing plan that will add value to Kingsford’s market share, sales, and profitability.

One of the reasons for the downturn in the Coors industry was due to the fact that their competitors began to minimize their costs similar to what they had done. It was no longer a strong advantage like it had been previously. Coors had very limited suppliers and were

As a company with limited financial resources, Nantucket Nectars have been disadvantaged in their channels of distribution. They have not been able to distribute their products in the supermarket on a large scale. As can be seen from tables D and E, although most of the New Age beverages were sold in the supermarkets (55%), the proportion of Nantucket Nectars supermarket sales was only 1%. Nantucket Nectars distributed their products mainly through other channels like delis and educational institutions and is thus missing out on a large portion of the consumers pie This inevitably means that the company would be able to increase their revenue substantially if they were able to distribute their products in the

The political situation of a country affects its economic settings and economic environment affect the business performances. Coca-Cola sales are impacted by a set of economic factors that beyond are beyond the company’s control. These factors include the level of economic growth in the country and in the industry, tax rates and currency exchange rates, interest rates, labor costs and others. The global economic and financial crisis of 2007 – 2009 is a relevant example of an economic factor that greatly impacted the majority of businesses around the globe. However, the crisis has impacted Coca-Cola to a lesser extent compared to many other businesses. Its’ operating margin remained at industry-front 22% despite the crisis, although dividend yield was reduced to 2.6 % Quarts. (Timmons, H. (2014). Economic factors relate to goods, services, and money. Despite directly affecting businesses, these variables refer to financial state of the economy on a greater level –whether it be local or global, inflation increases cost of production. Consequently, Coca-Cola had to face the uncontrollable problem of increasing their pricing. With this increase they risk losing customers who cannot afford their products because it is a desired product not a necessity. Due to inflation in 11 years the price of an identical bottle of Coca Cola has doubled in price. Alternatively, Coca Cola could be forced to lower their prices to facilitate an increase in consumption

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”

Based on the above description, forms of elasticity will affect business decisions and pricing strategies differently depending on the nature and type of products or services being offered. Business organizations whose product offerings have elastic and perfectly elastic price elasticities of demand should not attempt to raise prices of their products because it will cause the quantity demanded and consequently total revenues to drop drastically. Businesses can there use the price elasticities of demand to determine whether the proposed changes in their prices will raise or reduce their total revenue. The following expression may be useful in helping business organizations to determine the impacts of elasticities on their total revenues based on the suggested price changes.

To solve the equation, you plug 3000 in for x and get p(price) = 120. Yes, the unit price of $120 may seem high but because production decreased by almost half and we kept revenue the same the increase in unit price was justified. A function for the elasticity of demand would have to follow the equation E(p) = -pf’(p)/f(p). The predetermined function for f(p) = 12000-75p and taking the derivative f’(p) = -75, these can be plugged into the elasticity demand function to get E(p) = 75p/12000-75p. Using the unit price of $120 for p elasticity of demand comes out to be 3. Since 3 is greater than 1 the unit elasticity at this price is elastic. Based on this finding increasing this price would make revenue less productive and so we should keep the price of the water bottles lower to be able to produce more; however, it would make sense to increase

There is a lack of information or inaccurate information and analysis. Instead of discussing directly with the employees, that sales were dropping, the manager used a form of manipulation in form of placing the competition's bottles water e.g. Badoit Rouge in the factory cafeteria, which further antagonized workers. This action was opposed to the intended motivation. One of the best ways to overcome resistance to change is to educate people about the change effort before change occurs. Up-front communication

When price elasticity of demand is elastic, the coefficient will be greater than one. When a percent price change occurs quantity demanded responds strongly there will be a large change in quantities consumers purchase. There is price sensitive in this scenario. If price elasticity of demanded is inelastic the coefficient will be less than one. When a percent price change occurs quantity demanded does not respond strongly then there is a slight change in quantities consumers will purchase. There a weak price sensitive in this scenario. Lastly, if price elasticity of demanded is unit elastic the coefficient will be equal to one. Whenever there is a percent change in price there is an equally matched percent change in quantity demanded. This scenario is rare.

However, during the implementation period, Dreyer’s faced the toughest moment in history. Its pre-tax earnings and stock price decreased dramatically due to a series of problems. One of the problems was the unexpected skyrocketing price of butterfat. Besides, the high cost promotion and the delivery system also became a heavy burden for the company. Because of these problems, Dreyer’s Grand Plan took much longer than they predicted to meet the recovery costs.

Considering that soft drinks are one of the most popular drinks to a lot of people all around the world, unfortunately, a lot of them love to drink it almost every day and may not live without it. Soda becomes addictive, preventing one from drinking what the body needs the most which is water. In the market, there is a infinite amount of choices with multiple varieties of flavors, different tastes, ranges from classic soda to diet soda. However, consumers do not recognize clearly the negative effect of soft drinks that have a high chance of eroding their health away. Some of these examples include dental erosion, energy intake, obesity and other health issues. Nowadays, people live a healthy life to avoid health problems, so taxes on soft