Business Case Study: Refreshnow

RefreshNow: Case Study

Question 1

RefreshNow should consider the cost of product implementation; such may include the need for more in-house staff to support the implementation, which includes such activities as marketing and advertising. The company should also consider the competitive environment with a focus on their competitors, the competitors pricing strategies, their market share. Another significant factor the company should consider is the profit potential with a focus on the product’s potential impact on bottom-line revenue. Focus should not only be on the product itself but also on its potential to open more doors to new opportunities for revenue.

Question 2

Solution

Price per Unit $2

Variable Cost per Unit $1.9

Total Fixed Cost$40,000,000

In order to ensure that the company meets its target in gaining the required market share, the company should among other things, ensure that it carries out an effective market research to discover the market gaps and have an idea of the best points of entry. This should be coupled with an efficient sales force for product promotion and distribution. The company should also deploy cross-functional teams charged with making key manufacturing and marketing decisions to ensure synergy when it comes to product release. Another key, but often overlooked aspect is getting the required logistics in place early enough. With logistics, the focus should be on the involvement of logistics personnel in developing strategy both marketing and managerial.

Question 4

From the study, it is evident that most consumers identify beverage x with the sports drink category, and most would prefer to buy it from a supermarket. RefreshNow is better off marketing their product as a sports drink as this will enable them to lock in a large number of consumers. The advantage of marketing it a sports drink is because it will appeal to consumers across the age divide. Sports drinks are the entire rave now, and many people consider it not only fashionable but also projecting a health-conscious image when seen holding a sports drink bottle.

Marketing the product in a supermarket

Infrastructural facilities like adequate water and power supply, good road/rail network should be available in the area. The company should also consider the legal implication of the area of the proposed plant in terms of local laws and regulations and also the tax regime. Laws could include those hats control industrial growth, waste disposal or place penalties on pollution among others. The company should also consider the level of competition in the proposed plant site, it’s easier to establish new plants in areas with little or no competition and vice versa. Availability of incentives is another factor that the company can consider as it seeks to put up a new plant. Government policies are such that they extend incentives like lower tax regimes, cheap land for building amongst others as it tries to encourage development in least developed