Business Proposal
RUNNING HEAD: BUSINESS PROPOSAL
Business Proposal Margarita Gibbons ECO/561 September 22, 2014 Maria Hamideh Ramjerdi
RUNNING HEAD: BUSINESS PROPOSAL
Business Proposal
In our day and age, companies large and small try to lure the consumer to buy their products, by coming up with new items. Coca Cola is a company that lures its consumers by coming up with new flavors of the soft drink. To attract more soft drink users, I would create a product similar to coke, but it would be in powder form and have longer shelf life than a bottle of soda does. For starts, we need to know that a normal bottle of Coca Cola sells for around $1.52 in the United States with the most expensive Coca Cola being sold in Switzerland for $5.39.
According to www.businessdictionary.com/definition/market-structure.html, market structure is, “The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market” (BUSINESS DICTIONARY 2014).
Coca Cola knows that Crystal Light has made powdered drinks that have a longer shelf life than their bottled soft drinks and bottled waters, they also know that these are lighter in calorie count. Crystal Light’s price ranges anywhere from $2.49 to $2.69 in its powdered form and if I were to make powdered coke, I could sell it for a price range between $2.50 and $3.00. According to the webpage, www.investopedia.com/terms/p/priceelasticity.asp, price elasticity is “A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price” (INVSTOPEDIA 2014). There is a great amount of price elasticity with powdered soft drinks. Price elasticity will relate to my product because of the fact
Business Proposal Margarita Gibbons ECO/561 September 22, 2014 Maria Hamideh Ramjerdi
RUNNING HEAD: BUSINESS PROPOSAL
Business Proposal
In our day and age, companies large and small try to lure the consumer to buy their products, by coming up with new items. Coca Cola is a company that lures its consumers by coming up with new flavors of the soft drink. To attract more soft drink users, I would create a product similar to coke, but it would be in powder form and have longer shelf life than a bottle of soda does. For starts, we need to know that a normal bottle of Coca Cola sells for around $1.52 in the United States with the most expensive Coca Cola being sold in Switzerland for $5.39.
According to www.businessdictionary.com/definition/market-structure.html, market structure is, “The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market” (BUSINESS DICTIONARY 2014).
Coca Cola knows that Crystal Light has made powdered drinks that have a longer shelf life than their bottled soft drinks and bottled waters, they also know that these are lighter in calorie count. Crystal Light’s price ranges anywhere from $2.49 to $2.69 in its powdered form and if I were to make powdered coke, I could sell it for a price range between $2.50 and $3.00. According to the webpage, www.investopedia.com/terms/p/priceelasticity.asp, price elasticity is “A measure of the relationship between a change in the quantity demanded of a particular good and a change in its price” (INVSTOPEDIA 2014). There is a great amount of price elasticity with powdered soft drinks. Price elasticity will relate to my product because of the fact
References: www.businessdictionary.com/definition/market-structure.html. Retrieved on September 20, 2014. From www.businessdictionary.com/definition/market-structure.html www.investopedia.com/terms/p/priceelasticity.asp. Retrieved on September 20, 2014. From www.investopedia.com/terms/p/priceelasticity.asp www.investopedia.com/terms/v/ variablecost.asp. Retrieved on September 20, 2014. From www.investopedia.com/terms/v/ variablecost.asp