business? CRITICAL FACTORS Health Consciousness The government and parents are branding soft drinks as junk food and is bad for the health. This poses a threat to the industry because prospect market will decrease in number or may chose an alternative drink. Increasing Costs There has been a gradual increase in the prices of raw materials‚ bottling equipment and delivery equipment for soft drinks. Unlike prospective competitors who had purchased their materials a long time ago at a much
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Fizzy drink consumption is a fast growing health concern. If you are a regular consumer of soft drinks think about this‚ one 750ml drink of coke contains around 65 grams of sugar‚ according to the academy of nutrition. Theses excess calories and sugar that fizzy drinks contain is linked to numerous health problems like‚ type 2 diabetes‚ cardiovascular clogs‚ blood clots etc. to a healthier life-style try replacing soda with flavored water‚ soy milk‚ tea and water. I am ewrh4 rthhgfjdfhgsfha/
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CONTENT PAGE No. 1. 2. 3. 4. Content Content Page Objectives Acknowledgement Part 1 Part 1 (a) Part 1 (b) Part 2 Part 3 Page 1 2 3 4 5 5. Part 2 (a) Part 2 (b)(i) Part 2 (b)(ii) Part 2 (b)(iii) Part 2 (c)(i) Part 2 (c)(ii) Part 2 (c)(iii) 6-7 8 8 9 9 9 9-10 6. Part 3 (a)(i) Part 3 (a)(ii) Part 3 (b)(i) Part 3 (b)(ii) Part 3 (b)(iii) Part 3 (b)(iv) Part 3 (c) 11 11 12 12 12-13 14 15-16 17-18 19 7. 8. Further Exploration Reflection
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each of the items: Soft drink sales need to cover 25% of fixed costs‚ or $6‚515 Coffee sales need to cover 25% of fixed costs‚ or $6‚515 Hot dog sales need to cover 20% of fixed costs‚ or $5‚212 Hamburger sales need to cover 20% of fixed costs‚ or $5‚212 Miscellaneous snacks need to cover 10% of fixed costs‚ or $2‚606 3. What unit sales would be at break-even for each item: A soft drink costs $0.75 and is sold for $1.50‚ which is $0.75 of revenue. To reach the soft drink break-even point‚ $6
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A Comparison of the Carbonated Soft Drink‚ Ready-to-Eat Breakfast Cereal and Specialty Coffee Industries Using Porters Five Forces Michael Porter’s framework describes an industry as being influenced by five forces: buyer power‚ supplier power‚ threat of substitutes‚ threat of new entrants and the degree of rivalry between existing firms within the industry. A strategic business manager can use Porter’s model to more clearly understand the industry environment in which its firm operates and to
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and looking to noncarbonated beverages for growth. Globally‚ the market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. The modern soft drink industry started in 1886‚ when Dr. John S. Pemberton invented "Coca Cola" in Atlanta‚ Georgia. This was followed
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creative execution/creative concepts in managing the Mountain Dew brand? • Mountain Dew used to be positioned as the hillbilly soft drink. Mountain Dew is positioned as a brand of soft drink for a person who embraces excitement‚ adventure and fun. As said by its positioning statement‚ “ To young‚ active soft-drink consumers who love adventure‚ Mountain Dew is the soft drink that gives you more energy than any other brand.” Mountain Dew was able to maintain its position well by understanding the consumers
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game: 20‚000 + 4‚800 + 1‚260 = $26‚060 2. Soft drink sales need to cover 25% of fixed costs‚ or $6‚515 Coffee sales need to cover 25% of fixed costs‚ or $6‚515 Hot dog sales need to cover 20% of fixed costs‚ or $5‚212 Hamburger sales need to cover 20% of fixed costs‚ or $5‚212 Miscellaneous snacks need to cover 10% of fixed costs‚ or $2‚606 3. A soft drink costs $0.75 and is sold for $1.50‚ bringining in $0.75 of revenue. To reach the soft drink break-even point‚ $6‚515/$0.75 = 8‚687 must
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nearly 100 brands and numourous little brands in the market • Entrants are still willing to access to the market which enticed by the gravitation towards the great revenue. e.g. Hung Fook Tong began to sold its first batch of packaged ready-to-drink soft drinks for only 10 years. Suppliers bargaining power • Vitasoy is solely a manufacturer which has no farm to plant raw materials such as sugar‚ soya bean‚ tea leaf‚ etc.‚ i.e. the supply is dominated by the suppliers • Vitasoy would have limited
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Coke goes up in hot weather where cold drinks are regarded more valuable to satisfy thirst than in cold days. Coca Cola tried to maximize profit from these smart vending machines‚ after facing price war in supermarkets. This practice is called price discrimination‚ where a company is charging different prices for the same product to different consumer. In the Coke’s vending machine case‚ the differentiation is on how consumer values cold drinks in different weathers. Case Is price
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