PROBLEM STATEMENT

Schmeckt Gut is about to present a fresh product in Atollia,whichis Schmeckt Besser Energy Bar. Before launching its new product, the company should conduct the survey to identify the product demand in the market. While doing so, company should track some ethics. The ten major principles that can be followed by the company include tradeoffs by people;opportunity cost i.e. to give up something to obtain another, rational investor considers the margin and people can be attracted by the incentives etc. In this case, preference and choices of people mean a lot because whether the alternates are available or not, but will Schmeckt Besser be able to successfully have the attention of Atollia’s market or not?

Therefore, this report is aimed to produce an effective market analysis that would assist the company to recognize the demand of the product in the market, preference of the customers and market nature. The analysis for the market condition should be conducted through the available data whether primary or secondary.

PROJECTIONS

This report comprises the company’s potential of making different projections as the income, inflation rate, and tariff may be increased. For instance, in this report, the company is projecting the increase of 5% in income, increase of 10% in tariff and increase of 2% in inflation rate. The net increment is not feasible for the firm because when tariff will increase by 10% then there will be competition in the product price. It must not be neglected that the increasing inflation rate will decrease the consumer’s purchasing power. Conclusively, the income of the company will only be increased slightly i.e. only by 2%.

The following data has been used to draw the projections

And the projections are as

SUPPLY

A company cannot move forward without any supply line therefore it is necessary for a company to have a strong line of supply. In this case, Schmeckt Gut should have the awareness of supply line initially and has to select a better process of production that can assist to increase or decrease the product supply with respect to the demand in the market. Schmeckt Gut can alter the quality and nature of their product with respect to the market demand by the help of a modernized and updated production process. According to a research, a better line of supply can enhance the power of the company and it also helps the company in becoming the leader of the market. The supply of the company has been increasing every year since it was 60 in the year 2011.

DEMAND

Analyzing demand is somewhat a difficult task for the company; the company Schmeckt Gut has to be cautious in analyzing the demand as the supply line mainly relies on the product demand of the company in the market. According to a research, a company should spend its more time on analyzing the demand to strengthen line of supply. To analyze the demand efficiently, the company can use previous data. To understand the demand in the market here, company must be aware of the choices of the consumer that can affect the demand of the product………………

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