The goal of this project will be to provide an outline for managers in the low-calorie, frozen microwaveable food industry that can help them in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. As reviewed in the previous assignment, a healthy lifestyle is a hot topic in today’s world and providing options to consumers for healthy food options continues to grow. In order to adapt to what consumer demand is in a growing health conscious society, companies need to provide quality goods to serve those demands. The balance that needs to be found between the company producing the good and the consumer that is demanding the good is to ensure profit, but …show more content…
Just doing a large, one time increase will potentially have a negative impact on your targeted consumer market. In addition, with products that have multiple selections, raising prices on a select few and not all of them at once could also be helpful in strategy when a price increase is needed (Entrepreneur.com, n.d.). Timing of a price increase is also important – strategically aligning when implementing a price increase can help with response as well (Entrepreneur.com, n.d.). You would want to choose a time for the company when you will encounter the least risk. For low-calorie, frozen microwavable might be in spring and summer when people are looking to get in shape for the summer season and are motivated to try anything convenient to help them with their healthy lifestyle.
Section 2: Most government policies will impact businesses in some form. The Sherman Antitrust Act and Clayton Antitrust Act are regulations to prevent monopoly behavior and promote fairness in competition and prevent price discrimination respectively (Abernathy, 2016). Food safety and standard regulations (2009) are meant to ensure quality of food (Abernathy, 2016).
Some additional effects government policies could have on the low-calorie, microwavable frozen food
“For example, the federal government regulates the quality of food and water, the safety of workplaces and airspaces, and the integrity of the banking and finance system.” (Bianco, Canon 2011, p 582) Regulations find out if the product is a market failure. There are two types of regulations, which are economic and social. “Economic regulations sets prices or conditions on entry of firms into an industry, where as social regulation address issues of quality and safety.” (Bianco, Canon 2011, p 582) Economic regulations are concerned with the price regulation of monopolies.
IntroductionMy name is Kevin Chen and I am a senior consultant of the Boston Consulting firm. Per the request of the A/S Dansk Minox, a food products manufacturer, I am preparing this analysis to identify the existing problems within the business of A/S Dansk Minox and provide possible recommendations. As a consultant, I will present the analysis without bias and for the best benefits of A/S Dansk Minox. In the following analysis, I am going to answer the following question: Should A/S Dansk Minox bring the new product, complete meal, to the market?Company backgroundThis case is set in Denmark in 1967 when the "boom" in consumer food products was just beginning more working mothers, more disposable income, more choices in convenience food
Regulations made to minimize the risk of illness through food are based on the government’s understanding of science. While food businesses consider both the quality and safety of food, the government focuses only on food safety.
There are different types of businesses, for example, some use monopolies, trust and pools, while other eliminate competition for higher prices. As stated in “Progressive reformers regarded regulation as a cure for all sorts of socioeconomic and political problems” , “The Sherman Act of 1890 attempted to outlaw the restriction of competition by large companies that co-operated with rivals to fix outputs, prices, and market shares, initially through pools and later through trusts” , meaning, competition is the
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Since consumer creates a competitive pressure, Panera should not increase the prices since if prices rises, consumers might switch to another competitor, and thus the demand of Panera’s products will droop consequently. With the intention of sales growth, being more visible and attractive is required. Marketing is a valuable resource to market a product. In this case, Panera Bread needs to invest a huge portion of cash in its marketing campaigns in order to raise customer awareness to generate sales. Besides adverting its products, one solution to attract new customers could be promotion. PNRA should us a promotional pricing approach such as buy one get one free offers. Twice a month, on a given day, the company would offer a sandwich to every customer who buys a soft
Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).
All American businesses are affected by the legal and regulatory environment set forth by our government. Businesses have both benefited and been affected from government action to place rules and regulations on businesses while there some laws in place to support American workers and consumers. “The policies and practices of government bodies also establish an overall level of support for businesses operating within their jurisdictions. Taxation, fees, efforts to coordinate multiple regulatory agencies, the speed of granting permits and licenses, labor rules, environmental restrictions, protection for assets such as
Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and
High bargaining power of buyers due to large number of ice-cream suppliers, high customers’ price sensitivity. This could cause buyers to pressure us on lowering selling price or improve quality of products. (Jim Wilkinson, 2013) Furthermore, ice-cream is not a necessity, thus customers have higher price sensitivity than other food. Low income group of consumers, for example students are sensitive towards price of ice-cream, hence they are able to control our price indirectly.
* Products and prices – 1. Little love ($7.99) – targeting working mothers – lower price also reduced the “purchase risk”; Piece of Cake (pastries model) – reduce “purchase risk” (99c) – might appeal to people still unfamiliar with the ice cream concept (product differentiation) 2. Their prices are already lower than competitors (including recent price reduction across all product groups in Beijing)
We are a marketing research team of a fast food chain store. With increasing awareness about healthy food among the masses and with consumer preferences changing towards healthy food, we intend to launch a health food segment to cater to this need of the customers. We are also concerned about the pricing of the product that whether it should be priced same as that of normal fast food or the customers would be willing to pay a premium for healthy food.
The government has put in place many business regulations that protect the rights of the employees, environment and they make the corporations account for the power that they have in the society. There are those regulations that standout due to their relevance to employees or consumers.
The utilization of products designed for microwave(s) has significantly expanded equally as the commonality of the microwave is improved. Consumers continue to be satisfied with the benefits and products offerings as a whole; however, there exists developmental issues that there is bourgeoning concern over the quotient of nutrition in the food calorie level is being maintained. A brief analysis of the industry exhibits that there are two leading competitors, e.g. Healthy Choice and Lean Cuisine. These competitors have a higher market share in comparison to other troupes. The competitors are old players in the market who fall under global brands and presence. The parent brand of Lean Cuisine is Nestle, established in 1981 and Healthy Choice is Con
The current high rate of inflation has caused an increase in the cost of consumable items that cannot be immersed and still maintain an acceptable revenue margin. This creates the problem of deciding whether to increase prices or reduce quality or quantity. One of the other possible problems is that increase prices may meet consumer resistance and a drop in sales. Reduced quality or quantity will be very quickly noticed by consumers and could also generate resistance and loss of sale. This decision however may be acceptable to the public if it is done in combination with advertising and rebranding of the product.