Supply and Demand and Barr S Product

Analysis the advantages and disadvantages to Barrs of its product mix. (10) A. G. Barr is a traditional company mainly operated soft drinks. reaping 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 and through the slipperiness study, A. G. Barr ships company has suffered fierce competition and last becomes a historied company. It has sophisticated distribution channel which can help company save the address and easier to gain economics of scale. b) the demand for barrs product is probably cost chewy. Explain how this may regularize the way in which barrs markets it product. (5) Definition of the price snatch of demand price elasticity is a kind of measurement 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 wor d means coefficient elastic > 1. We find that few companies are involved in soft drinks industry. So A. G. Barr is in oligopoly market.Due to the special reference 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 policy due to the character of Irn-Bru, price elastic to demand, utilise lower price strategy to enhance the sale could help company to plus turn over. Through the case study, during 2001 and 2002, the rate of exchange between Euro and Pound has changed. The Euro has depreciated which made import becoming cheaper than buy local products. The A. G. Barr Company reduced 30% of price for the wholesalers.Though the appendix six, the turnover of 2002 is utmoster than turnover of 2001. This action has efficient increase the turnover and makes the market share steady. Promotion A. G. Barr Company has large investment fo cus on promotion. Through the case study Robin Barr said we remain convinced, however, that the continuing investment in our brands will stool 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 different 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 particularly price factors. * Maintain the market share and freedom 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 help company to void the uncertainly risk and when elasticity