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Lim Wooi Kean

on 26 March 2013

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Chuan Wan Lin 1202887
Ng Wei Khang 1204608
Tong Chee Lin 1204630
Tee Zhao Yong 1204529
Koo Kar Seng 1204827
Lin Chee Hong 1203049
Lim Wooi Kean 1204660 FHBM1024
MICROECONIMICS & MARCOECONOMICS Company Background Law of Demand The oldest company among the region and Malaysia
Enjoys the rare distinction of being a market leader and household name in many categories.
One of Malaysia’s diversified blue chip companies with leadership in the nation’s beverages and dairy products
Operates under the banner of Fraser & Neave Holdings Limited.
Listed on Bursa Malaysia A brand of carbonated isotonic drink by Fraser & Neave company (F&N)
Smell : weak, cheap orange soda
helps to rehydrate, refresh and re-energise 1.Wasteful-liable of excess capacity Disadvantages of monopolistic competition DISADVANTAGES Viewpoint of customers -as the price decrease, demand will increase.
- change their demand from other substitutes .
-Demand curve of product 100PLUS will shift to the right.
-negative relationship. Product Brand Line Soft Drink Malaysia’s largest soft drinks manufacturer and distributor
100PLUS, F&N Fun Flavours, F&N Originals, SEASONS, Ice Mountain, Fruit Tree.
Newly launched Zesta and Clearly Citrus Dairy Product Malaysia’s leading dairy and food marketer
World-class products, standards and capabilities.
F&N Sweetened Condensed Milk, the Magnolia, Daisy and Farmhouse brands of pasteurised milk, the Fruit Tree Fresh and Sunkist pasteurised juices Property One of the business unit of Fraser & Neave Holdings Limited
Formed to unlock the value of land acquired and held by the company for many years Introduction of the Product 1983.
100 PLUS is a thirst quenching caffeine-free isotonic drink.
restore what the body has lost during physical exertion.
rehydrate the body to its optimal hydration balance. Classification of Product Normal product
Income increase, demand increase; income decrease, demand decrease.
People will only consume 1.5L per week when they have a normal income.
Their incomes increase and their frequency of consume on this products will increase. Complements & Substitutes Revive Isotonic and Excel.
same categories of product which is isotonic drink.
taste and ingredient are almost the same.
So, 7 Up, Revive Isotonic and Excel will be the strong substitutes. Market Structure monopolistic.
large number of buyers and sellers. So, there are lots of competitors in the industry.
Price makers, price and quantity are determined by the company.
free entry and exit market.
Spend money in advertisements to convince consumers. 100 Plus was advertised by the drink’s brand ambassador, Dato Lee Chong Wei. Price comparison with Revive RM1.80 RM1.65 New taste & prefence 100PLUS In 2011, non-carbonated version called 100Plus Edge was introduced in addition to 4 existing variation : Original, Tangy Tangerine, Lemon Lime and Active Revive Only 1 type of new taste : Revive Isotonic Ais Lemau Compare product & substitution Advertisement Television
Internet : webpage
Billboard & banners brand ambassador : Dato Lee Chong Wei (100 plus)
Organising contest 100PLUS VS REVIVE Viewpoint of customers ADVANTAGES Get more information -knowledgeable of products
-unique aspects
-satisfied Product differentiation -greater choice
-attract & retain by new products Product & Service quality -product improvement
-gain more benefits Advertising -best way
-wrong & exaggeration of information Price makers -higher price to buy a same product High expenses -advertising
-product packaging,unique market & distribution channels Conclusion 100 plus is a normal good which has many substitute goods.
Identify that 100 plus is monopolistic competitive market.
This product needs many advertisements to attract more buyers because of the powerful competitors.
We will choose to enter monopolistic market. -This market can combines some of the best features to provide customer convenience.
-This market has many firms and consumer of the product that not one firm has total control over market price
-Monopolistic competition illustrates both the costs and the benefits of firms with market power
-Buyers know what products are offered in the market, price differences and the differentiating characteristics of the product because of the perfect information for this market Law of Supply -as the price of 100 PLUS increase, supply will increase .
- produce more quantity , make more profit.
-Supply curve of product 100PLUS will shift to the right.
- positive relationship. EMPIRICAL FINDINGS Monopolistic Competition - monopolistic competition market structure.
- easy to entry and exit but also need bring different product in to this market also.
- many sellers and buyers market .
-spend money in advestisments.
-price maker. THANK YOU =) Advantages of monopolistic competition 1.The promotion of competition -new firm difficult to enter the market
-no ‘single firms’ will enter the market due to the monopoly power and the ability to exploit customers. 2. Differentiation brings greater customer choice and variety -wider range of customer choice compare to the single choice of monopoly and perfect competitive. 3. Product and service Quality-Development -monopolistic always trying the ways to make profit by lower the cost or improving their products 4. Consumers Become More Knowledgeable of Products -advertising and marketing was intend to inform the customer to differentiate the products
-customers can gain more understanding the information about the products -do not produce enough output to efficiently lower the average cost and benefit from economic of scale.
-expenses like packaging, marketing and advertising can demand extremely wasteful on some levels. 2.Allocatively Inefficient -cause deadweight loss in society that will lead government authority to regulate for some reason 3.Advertising -negative impacts on consumer’s sovereignty.
-obviously reducing competition as consumer’s become captivated over the perception of differentiation.
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