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Enterprise and Innovation - Essay Example

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This is the population which has sufficient disposable income to spend on products they desire and not just what they need. This will broadly be our…
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Enterprise and Innovation
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Enterprise and Innovation

Download file to see previous pages... We can categorize age structure as per preferences of the population in a particular age group. Thus we can have the various sub-groups as – 15 to 19, 20 to 29, 30 to 49 and 50 and above. We can safely assume that people falling in these sub-categories of age groups will have more or less similar preferences and hence we can target our products as per these 5 segments. An important point to note is that the population in the segments 15 to 19 and 50 and above will have more leisure time as compared to the other two which fall in working age group. These segments will have more time during the week-ends. Looking at the timings of the games, we have 3 week-ends between 27th July and 12th August 2012 (the period scheduled for the games). Thus, we can introduce products as per following plan:
Based on the tastes of the various age group segments different flavors have been introduced. People in the age group of 15 to 19 would prefer the flavors mentioned above. People above 50 years tend to get digestive problems and hence the products mentioned for their category will appeal to them. 20 to 29 years age people are more experimental and nor very money conscious. Hence, new flavors not introduced so far will appeal to them. And finally people in the age group of 30 to 49 are generally more health conscious and hence would prefer fruit based drinks which do not have the ills of carbonated drinks and at the same time will also be healthy.
The Price elasticity of Demand (PeD) determines how sensitive the demand for a product is to changes in prices. We will look at the general factors impacting all products as well as factors that are specifically impacting Coca-Cola at Olympics.
1. Substitute availability: Coca-Cola has direct competition with its substitute – Pepsi. Both are similar in taste and thus have very high PeD. Moreover in UK Coke has a direct rival Robins. This ...Download file to see next pagesRead More
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