Businesses in the fast-paced food and beverage industry face a slew of difficulties and opportunities created by environmental forces. Among these forces, the economic factor is what I feel is most important for Jamba Juice. Understanding why the economic component is crucial to Jamba Juice's success, emphasising its impact on pricing and profitability, unemployment rate among university students, and cost management. First, Jamba Juice's pricing strategy is intimately related to the state of the economy. Economic factors such as inflation, changes in disposable income, and consumer buying habits all have an impact on how price sensitive consumers and university students are. When the economy does well, individuals may be more inclined to pay …show more content…
However, if these young people are unemployed or experiencing financial troubles, they may be unable to afford Jamba Juice's offers. In this instance, it is vital for Jamba Juice to examine the economic conditions and adjust their strategy accordingly. This could include looking into more cheap price options, targeted marketing, or forming partnerships with student organisations or campus activities to attract and engage students despite budgetary constraints. Furthermore, the state of the economy has a significant impact on how much it costs Jamba Juice to create their smoothie. There are several elements that might influence the cost of creating the smoothies, including the cost of the ingredients, any complications that arise when obtaining the goods, and variations in how much it costs to hire personnel. For example, if the cost of fruits, which are a key ingredient for Jamba Juice, rises due to new regulations or market changes, the smoothies may become more expensive to manufacture. This cost-management issue is critical and must be addressed for the firm to
Cultures are becoming obsessed with pumpkin spice flavors because it’s just a good flavor. Other reasons why people are obsessed because it’s a newer thing. I really don’t know why everybody likes it I guess just because it’s good. I mean how could you pass up a pumpkin spice latte or pumpkin spice Pringles, pumpkin spice doughnuts or anything like that. People also like pumpkin spice latte because it’s caffeine. The Pumpkin Spice Latte is a coffee drink made with a mix of traditional fall spice flavors.
So as Jamba Juice transformed so did its prices. Now one thing to keep in mind Jamba Juice specializes in smoothies and juices, and there are no other big firms that supply smoothies. So up until 2012, a small Jamba Juice smoothie costed $3.19, but when the company went “eco-friendly” from Styrofoam to Double Walled Paper cups prices rose .60 cents and stayed dormant at $3.79 for a good 3 years (Alexander, 2014). Although there is a change to the input in supply, the demand stays the same and eventually falls back to equilibrium. Then in prices rose again in July 2015 from $3.79 to $3.99 for a small Jamba Juice smoothie to compensate for the minimum wage increase that took place. Now you think, “Oh no big deal right?” Wrong. Consumers noticed, they noticed even more when prices rose again 3 months later in October that same year to $4.79 for a small smoothie. So in the span of 6 months Jamba Juice had raised their price $1.00 (Jamba Juice Company, n.d.). Although they noticed it did not really change the market for Jamba
However, because of its demographic it was losing a high customer base because of its prices. The text book Chapter 10 emphasized the importance of pricing and creating profit. The investor Marcus Lemonis showed the owners how to evaluate demand and the price sensitivity of their products. He introduce product that could be brought in with lower price points that would compete with their competitor and still crate the high-end prestige the company wish to create. Taking advantage of the income statues of the company’s customer with in their demographic. One major problem the company had was the price point of a bag of dog food was around $100 per bag that was a high price for the consumers within the area. By bring in a brand that had high quality and prestige at a price point of $20 allowed for a greater customer
“How all occasions do inform against me” is a line from act IIII, scene IIII of
Most people have heard of Michael Jackson in their lifetime, his songs have been played in countless of movies, “Thriller” is played every October, but people might not know how he reached his fame. They might also not know what started his downfall. It all started out great, but a few rumors can ruin anyone’s reputation; Michael Jackson was a great example of this. Michael Jackson was known as The King of Pop, and one of the greatest singers and performers of all time, but a few mistakes made him go down as one of the most controversial modern tragic heroes.
The economic forces affecting the company include inflation and fluctuations in interest and currency exchange rates. Additional challenges include technological advances and Johnson & Johnson’s competition and patents attained by com...
Commercial firms use Price Elasticity to manage pricing and production decisions, especially in industries where the growth in sales and revenues are the primary measure of a firm’s success. Knowledge of the Price Elasticity for a product or service enables managers to determine the pricing strategy required to get the sales results desired. For example, a firm with a product with a relatively high elasticity would know that a large sales increase can be created with a small price decrease. Conversely, a firm with an inelastic product knows that changes in pricing would have minimal effect on sales.
Although produced by main market players, soft carbonated drinks cost more than similar products from local and private label manufacturers, consumers are willing to pay an extra price for the name, particular taste, and image. Fierce competition in the CSD industry forces Coca-Cola and PepsiCo to expand into new and emerging markets which present high potential for the company’s development. However, some foreign markets proved to be highly competitive. Coca-Cola Company’s operations in China faced antitrust regulations, advertising restrictions, and foreign exchange controls. iii.
According to Microeconomics, Price Elasticity of Demand is the responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product’s price (Hubbard & O’Brien, 2015). Demand is considered elastic when the quantity demanded for a product increases or decreases in response to price change. Normally, sales increase with price drops and decrease when prices rise. Coca Cola products are considered to have an elastic demand because quantity demanded for its products often change when prices change. If the price of Coke goes from $1.50 a bottle to $2.00 and the price of a 20 oz. Pepsi remains at or around $1.50
The case study "Cola Wars Continue: Coke and Pepsi in the Twenty-First Century" focuses on describing Coke and Pepsi within the CSD industry by providing detailed statements about the companies’ accounts and strategies to increase their market share. Furthermore, the case also focuses on the Coke vs. Pepsi products which target similar groups of customers, and how these companies have had and still have great reputation and continue to take risks due to their high capital. This analysis of the Cola Wars Continue case study will focus mainly on the profitability of the industry by carefully considering and analyzing the below questions. Why is the soft drink industry so profitable? Compare the economics of the concentrate business to the bottling business: Why is the profitability so different?
Was orange juice always just here? What is the difference between the different types? Why does everyone like it cold? Is it a sustainable product the way Tropicana is running their processing plant? Are there ethical issues with orange juice production?I began to wonder one day as I was looking in the store, in the orange juice aisle. This paper is a journey into orange juice through the popular Orange juice company, Tropicana .I chose this company because this was a juice that I had grown up with .I hope to be able to answer there questions for myself and you ,the reader.
The CSD (carbonated soft drink) industry is one that is very competitive. A few firms dominate this industry, most notably Coca Cola and Pepsi Cola. This is due to substantial barriers to entry. Cadbury-Schweppes, producer of products such as 7up and Dr. Pepper is the third leading company in this industry. Due to the dominance of Coca Cola and Pepsi, Cadbury-Schweppes faces the daunting task of having to fight for market share and survive in this fiercely competitive industry. Using economic analysis for support, Cadbury-Schweppes will need to use its strengths in the non-cola categories to compete in this CSD industry.
However, a sales performance review in the year 2015 of new soft drinks introduced by Coca cola established that in Mount Kenya region, only 15% had succeeded, 55% were performing poorly, 17.5% had failed completely, while another 12.5% exhibited abnormally high artificial growth.(MKBL,2015) Despite the introduction of new products by the Company, its market share in the soft drinks market dropped from a high of 98% in year 2013, to a low of 93% in 2015 in Mount Kenya region, which included Nyahururu town. (Ac Nielsen, 2016). There have been complaints by customers on the products attributes, pricing, distribution and the execution of promotional activities. Still, there is scanty and inconclusive empirical data that would explain this trend of Coca cola products within Nyahururu town. A study by Migwi (2012) researched on Mount Kenya Bottlers response strategies to changes in external environment. However this research did not study the effects of marketing mix variables of new Coca cola soft drink products on sales performance as it was out of scope. This study therefore, aimed at filling this knowledge gap by examining the effects of marketing mix variables of new Coca cola soft drink products on the company’s sales performance in Nyahururu town. It aimed at providing insights towards the application and integration of the marketing mix variables by marketing managers so as to achieve the envisaged goals. By gaining insights into how sales performance is affected by the marketing mix variables, the company is going to design and integrate the marketing mix better, therefore improving sales performance in terms of market share, growth and ultimately,
In conclusion, while the shift in demand curb can result from several sources, the quality of service, the tastes or even the number of buyer as presented here represent the main reason of the shifting price of an activity as the sell of ice-cream on campuses. As a businessman we should take in consideration those factors in order to be successful and trying to anticipate our rise or fall to stabilized our business. On another hand, keep in mind The most famous law in economics: “when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises.”
This increase in production caused a change at the consumption end. When sugar was first being produced it was seen as a luxury product only accessible to the rich, but then as its production increased and there was a surge amount in the market place its uses changed. It went from being a specialized product used for medicinal, ritual, or for display purposes to a common everyday food substitute. Now the working class people began more than ever to consume large quantities of sugar as a substitute to their calorie lacking diet. The production of sugar in the British West Indies was not able to keep pace with the demands from the mother country. When the supply from the British West Indies increased so did England’s demand for the crop. It seemed like from the middle of the eighteen century onward the islands were never able to produce more sugar than what was consumed by the people in the mother country. “English sugar consumption increased about four-fold in the last four decades of the eighteenth century, 1700-40, and more than doubled again from 1741-45 to 1771-75 (Mintz 1985) . As the English began to incorporate more amounts of sugar into their daily diets they began to find multiple uses of the commodity. Sugar soon developed into a stable product in the lives of people. With the increased use of sugar in multiple forms of consumption it changed from its previous classification as a spice to its own separate category. The use of this newly popular commodity did not lose any popularity as the years passed. Britain became a leading exporter of sugar crops into the world market, with majority of the supply going to feed their own peoples ravenous appetite. In 1800 British consumption of sugar had increased some 2,500 percent in...