Supply and Demand and Barr S Product

Analysis the advantages and disadvantages to Barrs of its product mix. (10) A. G. Barr is a handed-d admit company mainly operated soft drinks. Product mix of A. G. Barr can be categories into two parts one is Barrs Own Brands and one is Barrs Franchise Brands. Advantages of Barrs Product Mix Through the case study, A. G. Barr familiarity has suffered fierce competition and finally becomes a historied company. It has sophisticated diffusion channel which can help company save the cost and easier to introduce economics of scale. b) the demand for barrs product is probably scathe elastic. apologise how this may influence the way in which barrs markets it product. (5) Definition of the damage elasticity of demand price elasticity is a kind of bar which used to measure sensitivity of changes in quantity demanded in retort 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 cost-eff ective elastic > 1. We find that few companies argon involved in soft drinks industry. So A. G. Barr is in oligopoly market.Due to the special grammatical case 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 Pricing activities price indemnity due to the character of Irn-Bru, price elastic to demand, using frown price strategy to enhance the sale could help company to growth turnover. Through the case study, during 2001 and 2002, the rate of exchange between Euro and Pound has changed. The Euro has depreciated which do import becoming cheaper than buy local products. The A. G. Barr union reduced 30% of price for the wholesalers.Though the appendix six, the turnover of 2002 is higher than turnover of 2001. This action has efficient increase the turnover and makes the market share steady. Promotion A. G. Barr Company has freehanded investment f ocus on promotion. Through the case study robin Barr said we remain convinced, however, that the continuing investment in our brands leave behind make for A. G. Barr the optimum long term growth. This shows that company pays more attention on building brand awareness and loyalty, try to make product dissimilar from others, known as differentiation. It would decrease the elasticity of demand. Benefits of reducing elasticity Company could reduce uncertainty of Irn-Bru demand and risk, such as influence caused by external factors especially price factors. * Maintain the market share and granting immunity in setting price. Chance of using high pricing policy For instance 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 development of promotion, company decreases the elasticity of demand potentially. it will hel p company to void the uncertainly risk and when elasticity