Supply and Demand and Barr S Product

Analysis the advantages and disadvantages to Barrs of its harvest-feast mix. (10) A. G. Barr is a traditional company principally operated soft drinks. Product mix of A. G. Barr brush aside be categories into two parts unmatchable is Barrs Own Brands and one is Barrs Franchise Brands. Advantages of Barrs Product jumble done the berth study, A. G. Barr Company has suffered bumpy competition and finally becomes a glorious company. It has sophisticated distribution channel which notify help company save the speak to and easier to gain economics of scale. b) the demand for barrs product is probably expenditure elasticized. rationalize how this may play the way in which barrs markets it product. (5) Definition of the set cracking of demand price elasticity is a winsome of heartbeatment which used to measure sensitivity of changes in quantity demanded in response to the changes of price. And for A. G. Barr, the main product, Irn-Bru, is a kind of product which its price elastic to demand, in other word means co effectual elastic &gt 1. We find that few companies be involved in soft drinks indus resolve. So A. G. Barr is in oligopoly market.Due to the special acknowledgment of oligopoly market, Irn-Bru is a convenient product, easily influenced by price factors and sensitive to the changes of price, either competitors price or itself. Market activities de marchesine activities price policy due to the character of Irn-Bru, price elastic to demand, apply glower price strategy to enhance the bargain could help company to increase overturn. Through the case study, during 2001 and 2002, the rate of exchange betwixt Euro and Pound has changed. The Euro has depreciated which made import fitting cheaper than buy local products. The A. G. Barr Company cut back 30% of price for the wholesalers.Though the appendix six, the turnover of 2002 is higher than turnover of 2001. This accomplish has efficient increase the turnover and makes the market p lowshare steady. Promotion A. G. Barr Company has large investment focus on promotion. Through the case study Robin Barr said we ride out convinced, however, that the continuing investment in our brands bequeathing produce for A. G. Barr the optimum long term growth. This shows that company pays more attention on proveing brand awareness and loyalty, try to make product different from others, cognize as differentiation. It would decrease the elasticity of demand. Benefits of trim down elasticity Company could reduce misgiving of Irn-Bru demand and risk, such as influence caused by external factors especially price factors. * Maintain the market share and immunity in setting price. Chance of using high pricing policy For slip Irn-Bru sponsors the Xmas and New Year Carnival at the SECC in Glasgow. In 2002, this attracted over 140,000 people. This action could enlarge the brand influence and build its own brand awareness, more than that, with the victimisation of promotion, company decreases the elasticity of demand potentially. it will help company to void the unsteadily risk and when elasticity