HND大综合1答案2.docVIP

1,(a) Analyse the advantages and disadvantages to Barr’s of its product mix. Advantages: The A G Barr's only produce soft drinks, so it easy to achieve coherence between different types of product and to help the company from scale economy. It does not produce any other types of products, do not have any interests of the commercial activities in other areas. It claimed to be an 'independent, consumer led and profitable public company, engaged in the manufacture, distribution and sales of soft drinks brands. The various of product mix leading to Barr's enter the overseas market, focusing on different target market. such as carbonated soft drinks are mostly bought by young people. And it has a number of brands, produce line and coherence, get identify is easy. Disadvantage: A lot of product belongs to mature of product life cycle ,such as Irn-Bru, is Barr's main product. It is the leading brand name in Scotland and one of the top 100 in the UK. It is over 100 years old, and the sales can't increase . Market has some needs change for new product and customers. The Barr's product advantage are in the local area , but it maybe can't accept by the overseas market. in the case, the company has a long-standing aim to increase sales south of the border. If there is no help from STI , it is product may be can't sale in the country. The different customer have different taste, if want to everyone like it, it was difficult. and there is highly competitive in soft drink market. such as Coca-Cola, Pepsi-Cola. (b) The demand for Barr’s products is probably price elastic. Explain how this may influence the way in which Bar’s markets it products. Elasticity of demand measures the degree of responsiveness of the quantity demanded of a good to changes in price where quantity demanded is very responsive to price changes, then demand is referred to as elastic. Thus elasticity of demand is the relationship between the proportionate change in price and the proportionate change in quantity