The total supply of milk might remain the same, because the remaining high-efficiency producers are likely to be able to earn profits at this level of output. In the long-run, however, lower prices are going to sustain the quantity of milk demanded at higher than equilibrium levels, and the profits available to producers at lower than equilibrium levels. Producers, in their efforts to control costs, are going to reach a point of diminishing returns on those efforts. The result of this is that the market for milk will eventually become so distorted by the price ceiling that the government is forced to raise the price ceiling in order to ensure that there are producers remaining in the market. The government will have created a situation where to simply maintain the milk market requires active management.
2. There are several factors that contribute to the price elasticity of demand. One factor is the availability of substitutes. For milk, there are many substitutes available. Another factor, directly related, is the propensity to substitute. For most consumers, there is a relatively low propensity to substitute milk for other products. However, as milk alternatives become more mainstream, the propensity to substitute is likely going to increase over time.
Another factor that affects elasticity is how important the product is. For many people, milk is an essential part of their diet, if not directly than in the form of other dairy products like cheese, butter, yoghurt or ice cream. As such, milk is likely to have a low level of elasticity because people will be hesitant to reduce consumption of these staple products. A fourth factor is the cost of the product relative to the consumer's total budget. In general, products that represent a minor portion of the budget are less likely to experience high level of elasticity. If the price of milk increases by 10%, that might only be an increase of 30 cents...
Lactose-free milk serves a specific market niche of lactose-intolerant people. Soy and goat milk serve a similar role in delivering the benefits of milk to people with medical or philosophical reasons for avoiding cow's milk. Chocolate milk appeals to people who want the benefits of milk but want to drink candy instead. There are potential geodemographic segments that are served by some of these products. The Asian community, which has
Milk Got Milk Abstract Motivation -- There is nothing like a good television commercial to make one's day. Some are funny and some can make you sing or dance and the really good ones; well, they can make you laugh and more importantly, they can actually create a need to buy the product that they are advertising. This is also a world of big business. The Super Bowl, for example, charges millions
Market Needs Marketing It is likely that there would be no direct effect on marketing caused by a change from batch to line processing. However, depending on what was happening outside the company, there could be an effect. If, as is arguably the case, line processing is more costly than batch processing, it might be necessary to market the product without discounts and so on. This could be problematical if there was
It revealed the fact that customers were willing to buy chocolate in order to be in fashion. The government, which is a communist one, has imposed chocolate importers to mark the country of origin in order to provide the customers with the accurate information about the products they offer. Size, number, and financial strength of competitors. If we take into consideration the report mentioned above, the main competitors are: Dove (38.61%),
Al., 1992). Milk-borne Diseases However, although fewer cases of milkborne ailments exist today, the possibility is still realistic. For example, more than 300 people in the United States got sick from drinking raw milk or eating cheese made from raw milk in 2001, and nearly 200 became ill from these products in 2002 (Bren, 2004). Most health people recover from foodborne illnesses within a short period of time, but others may have
market communication plan for Divine Chocolate that produces chocolates for a noble cause of supporting the cocoa farmers of Ghana and promoting Fair Trade. The paper consists of an analysis of its business environment as well as a set of recommended strategies which it can use to beat the competition and effectively communicate its marketing messages to the most potential target customers. Divine Chocolate is one of the leading Fair
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