HND_GU1_大综合1__精品.doc

GU.1 1．(a) Product mix means that the full set of all products offered for sale by a company. From the case, it shows that the product width of product mix of Barr’s is not wide enough. So: Advantage:The Barr’s product mix is very simple and specialized which likes the operational activities. Barr’s just only operates in the drinks market. However, the company has great subsection of products, and there are many product lines and items in it. Moreover, with the edgy humorous theme advertisement, the products of Barr’s are well-known in many places. In the case, Barr’s produces many different brands, such as Irn-Bru, Tizer, Simply Citrus, Simply Clear, etc. It also operates the UK franchise for Orangina and for Lipton Ice Tea. For its products, Barr’s uses the advertisement to maintain an up-to-date image. This will help Barr’s to gain economies of scale in promotion and operation, and build managerial expertise. To gain the profits, a number of different markets are targeted by the company. The product lines and items of the company have various focuses. For example, Tizer aims at the market of 13-15 years old boys. And Orangina aims at the market of 18-30 years old people. Disadvantage:Most products of the Barr’s are at the maturity stage. According to the case, for example: Irn-Bru is one old brand, it over 100 years old, it is up against the decline stage. Soft drink is one of rapidly changing markets; so many companies will be durative to research, and then put out new brand of drinks. From the case, Barr’s is very hard to set up a new brand, because its own brands such as Irn-Bru are accepted abroad very well. The company is not able to develop its own brand. While, Orangina, one franchise agreement, is not in a steady market, and the Lipton Ice Tea is just in the introduction of its product life cycle in the UK. (B). Price elastic, which is known as elastic demand, means the quantity demanded will change by larger percentage than price. That is to say, price e