Since company Y’s license is withdrawn (Q_Y = 0), Company X is now as a monopolist which its demand curve will be the market demand curve. The company’s new MR curve which is corresponding with to its new demand curve (the market demand curve) intersects with the marginal cost curve at Q_M (higher output than Q_X1) and P_M (higher price than P_X1). The company can increase its quantity supplied while charging higher price due to lack of competition (price-maker). The new equilibrium price and quantity are at P_M and Q_M. (iii) In case (i), company X sets its price and output decisions based on the assumption that company Y will produce a particular quantity. Company X’s best output satisfies the condition that its marginal revenue is equal …show more content…
Healthy varieties such as high-fibre, low-sugar, gluten-free, organic and weight management cereals can be sold at slightly higher prices due to their higher quality. Suppliers can also offer certain discount and pricing schemes in order to encourage sales and generate revenues. Place: Grocery stores and supermarkets remain the most dominant distribution channel for cereals. Breakfast cereals must be put in the specific cereal area which makes it easier for consumers to find the product and for staffs to manage and restock the goods. Breakfast cereals’ suppliers should have their own warehouse and handle the distribution network efficiently. So that they can dispatch the products to their customers, wholesalers and retailers at a quick pace. Promotion: Breakfast cereal brands can reach out their targeted segments like women (who is normally the decision maker in kitchen), children (the influencer) and young people (who usually prefers quick and convenience breakfast) by utilizing many communication channels, such as TV, cinema ads, magazines. In addition, direct promotions which include discounted offers like coupons are considered the best way to attract customers who like purchasing bargain
Nutri-Grain cereal bars were created by the Kellogg Company and first introduced in the 1970’s Australia. They were later introduced to the United States and other countries. As more women began to work outside the home, the ritual of a family breakfast became obsolete as many individuals turned to quicker solutions for breakfast. The Nutri-Grain bar soon became popular as the on-the-go snack during the 1990’s. The cereal bar also comes in a variety of flavors that kids love, from blueberry to strawberry yogurt and has the texture a soft, homemade cookie. This television commercial centers on the theme of fostering a relationship between today’s kids and nature (see Appendix A). As the youth of today spends more time in the electronic world,
“For the first time in the history of the world, every human being is now subjected to contact with dangerous chemicals, from the moment of conception until death.” Why do people consciously consume unhealthy, processed foods which big corporations in America distribute? These foods can lead to potentially harmful affects on the human body. So why are these risky products sold and consumed? The main reasons are because processed foods taste great and companies make large profits from these unwholesome products. General Mills is the 6th largest food company in the world, and uses genetically modified ingredients, preservatives, and artificial flavors in their products. The product that will be analyzed will be the tasty, mouthwatering breakfast favorite, Reese’s Puffs.
John Harvey Kellogg wanted to cure “Americanitis”, which was the stomachache caused by the typical American breakfast. This breakfast consisted of sausage, fried ham, beefsteak, bacon, with whiskey and salt added on top. He decided to build a tiny health center that helped American improve their heath. In that center, he provided tips for healthy eating, and exercises. He did not allow fats, salt, or sugar in his clinic. In 1894, he took a trip to Denver, where he met an entrepreneur who invented a cereal made of shredded wheat. This inspired Kellogg to take this idea back home, and share with his brother, Will. Kellogg and his brother began to experiment, and created many cereals. They then met C.W. Post, and decided to collaborate and were eventually called themselves The Big Three. They invented 108 different brands of cereals. In the 1940s, they began adding a candy coating to the cereal. The Big Three controlled about 85% of the cereal market. The public’s enthusiasm for cereal grew drastically because women, who had children, had more time in the morning. Although convenience was the key to starting the day, the Big Three could not control the breakfast table without being finessed.
Another thing that consumers need to pay attention to is the high content of sugar in these cereals. Going through the labels of the boxes of the cereal is crucial to our health. Consumers need to follow what’s on the label, especially the serving sizes, because it is the right thing to do for health reasons. Eating more than the required amount can lead to bad things like diabetes and other health concerns that only we can control.
A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
Lisa Aham’s strategy is mostly a target marketing approach because it emphasizes in particular to senior citizens in a city with “many citizens”. She offers specific breakfast specials for seniors 55 and older on certain days of the month to promote a creative strategy and obtain new customers. The special is done every 4th Monday of the month, offering $1.99 meals and free coffee refills. Her strategy to promote this special has brought more than 100 senior citizens on that day of the month but moreover has created a gathering environment every day of the week for this group of people.
below, if firm X decides to lower its price from B to D, sales should
Several facts are changing in today’s marketing communications. More companies adopt the new concept of integrated marketing communications (IMC) to convey a consistent message about their brand and products. Hence, IMC has played a powerful role and developed into a useful strategy for company to reach more customers and build good customer relationships. According to Herstein et al. (2008), IMC is one of a successful strategy that coordinates and integrates all of marketing communication tools to efficiently and economically influence between an organization and its existing and potential customers. Moreover, marketers can combine IMC tools (advertising, sale promotion, personal selling, direct marketing and public relations) rather than separate practices to create values and avoid potential conflicts (Duncan & Everett, 1993). In fast food industry, fast food chains integrate advertising, sale promotion, sponsorship, packaging and Internet to promote their products as well as build brand image (Sperber, 2003; Story & French, 2004; Morrison, 2010). Advertising is most used form of communication and the most frequently utilized medium due to it easily contact the target market, especially on television advertising (Story & French, 2004; Case, 2007). In addition, simple toys and products are typically used by fast food chains in children’s meal to attract children and adolescents.
via promotional stalls and kiosks to create brand awareness and allow customers to first hand taste
As with all markets and their respective economies, having equilibrium is one of the key factors of a successful system. Although most markets do not reach equilibrium, they attempt at getting close. There are numerous methods devised to reach equilibrium, whether they involve human intervention directly or a cumulative decision by all factors involved. These factors may be a seller's willingness to lower overall revenue, or a buyer's willingness to withhold some demand for a certain product. Of course, the basics of supply and demand retrospectively control the equilibrium in the market.
The second market structure is a monopolistic competition. The conditions of this market are similar as for perfect competition except the product is not homogenous it is differentiated; thus having control over its price. (Nellis and Parker, 1997). There are many firms and freedom of entry into the industry, firms are price makers and are faced with a downward sloping demand curve as well as profit maximizers. Examples include; restaurant businesses, hotels and pubs, specialist retailing (builders) and consumer services (Sloman, 2013).
When comparing Children and Adult Cereals, it is evident that adult cereals have significantly more carbohydrates than children cereals. The reason for this is rather obvious. Complex-carbohydrates take longer for the body to breakdown, so naturally children need less throughout the day while adults would need more to keep them active.
Edgeworth proposed his theory by first examining the price competition in a duopoly with substitute or complementary products where the quantities of good are denoted by x and y .The duopoly model provides a benchmark to analyse the oligopolistic structure competition with differentiated products. Edgeworth defines the goods to be rival with respect to utility functions and complementary if the cross derivative of the goods turns out to be positive. Edgeworth is credited with introducing the general functional form for the utility function. From this function, direct demands are derived and their properties are
Are you looking for breakfast ideas for your fussy preschooler cutie pie? At this age, children become fussy about everything and not just food. But food is one thing that gives us mothers the most stress. Something that your kid likes today may just stop eating from tomorrow. Kids get bored very easily of repeated meals and it can be very frustrating. Breakfast is the most important meal of the day and for children having a wholesome breakfast means a happy day at school. Children also complain of not wanting to eat the same breakfast items over and over