Current Market Conditions Competitive Analysis_365 - Essay Example

Download file to see previous pages... First is the price that has an inverse relation, that means consumers want to buy more when the price is low, and will buy less when it is high. Next is the income wherein the effect of buying depends on the income. But this type of reasoning depends on the kind of commodity. For normal goods, as income increases demand also increase, and demand for product decrease as income lessens. Next is Tastes and preferences of consumers; Demand is also affected by consumers taste and preferences, particularly now, that consumers have become health conscious. Another aspect is the consumers’ expectations. When consumer anticipates a price increase, tendency is to stock up, because this is an expectation of what to happen. A demand for instance, is affected by weather, Consumption increases during hot weather, and decreases in winter.
The dictionary has defined equilibrium price as the quantity of goods buyers are willing to buy and the quantity of goods sellers are willing to sell. The equilibrium price is found in a diagram where supply and demand interacts . P1 and Q1 are the points of equilibrium where supply = demand. At any price above P1, supply exceeds demand price below P1demand exceeds supply. (tutotr 2u)
Target market of the new Cola drink is the American consumers, who, according to Huffpost Healthy Living, (05, July, 2012), half of the number of American surveyed, drink soda on a daily basis, with an average of 2.6 glasses. Study of Diechert, Mehga, et. al ( Feb 22, 2006)shows soft drink industry has a market share of 46.8 % that competes with that of non-alcoholic drink Business wire( February 04, 2011) estimates soft drinks’ global market to have a volume of 465.4 billion liters, which is an increase in the consumption of 16.7% since 2006. Clearly, this is an indication that the soft drink industry is still strong and a profitable industry. Outside U.S., there is an indication that Coca-Cola does not retain sales ...Download file to see next pagesRead More