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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Group owns or licenses and markets more than 500 nonalcoholic beverage brands‚ primarily sparkling beverages. Coca-cola also distributes a variety of still beverages‚ such as waters‚ enhanced waters‚ juices and juice drinks‚ ready-to-drink teas and coffees‚ and energy and sports drinks. Coca-Cola manufactures‚ or authorizes bottling partners to manufacture‚ fountain syrups‚ which it sells to fountain retailers‚ such as restaurants and convenience stores. Fountain retailers use the fountain syrups
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the government in the corporate sector * Low awareness‚ demand and consumption for soft drinks. The per capita consumption was only 3 per annum * Foreign brand name could not be used * There was no liberalization and this not even 1% FDI was allowed. * Sensitive political and social problems in the country like terrorism * Cola concentrate – the major ingredient to make Pepsi soft drink could not be imported * Agriculture sector was the priority and thus Pepsi had to win
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Soft drinks‚ also called as sodas‚ are one of the most popular beverages that are drunk worldwide. Several brands of sodas‚ mainly from the brands The Coca-Cola Company‚ Pepsi‚ and Dr. Pepper-Snapple‚ are competing in their sales. As of 2012‚ the leading brand of food beverages is Coca-Cola. Statistics show that more than a billion Coca-Cola products are consumed daily worldwide. That means that we are consuming more sodas than ever before‚ and many health issues are showing up‚ including teeth problems
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