Sunshine Juice Company Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Sunshine Juice Company is a well-renowned and highly esteemed company, which has specialized in making and selling orange juices. The company sells 100% pure juices made from orange pulps. The company has earned its customers’ satisfaction and confidence over the period of time by facilitating its valuable customers with excellent quality products as well as exceptional customer care services. Moreover, the excellent quality products and exceptional customer care services provide company a competitive edge to operate effectively and efficiently in a highly competitive environment.

Recently, the top management of the company considered enhancing the profitability of the company as well as finding the suitable target market for the company. Moreover, the top management of the company is also considering enhancing the sales of the company as well as the company wants to draw and implement suitable strategies in order to increase and ensure the efficiency of its marketing process.

SITUATION ANALYSIS

The case deals with certain problems faced by the management of the company. The company wants a robust growth in the overall profitability and revenue of the company as well as the company wants to reach the optimal level of output and performance in a very limited time period. Keeping this objective in mind, the company strives to formulate effective and efficient strategies in order to support its cause.

There are certain factors that the top management of the company is considering in order to achieve company’s objective and goals easily and effectively. The company is currently striving to identify its target market from where the company could get maximum revenue. Moreover, the company has targeted multiple segments of selling its products which includes Club stores as well as Grocery stores. Moreover, the company is also concerned with the effective strategies and ways to penetrate in the different potential markets in different countries but more importantly in U.S.

The company is also making backbreaking efforts in determining an optimal price of its products in order to earn the optimal revenue. The company is trying to formulate a price that could attract the customers towards the company as well as the price could allow the company to compete strongly among its competitors.

PROBLEM STATEMENT

There are three main problems faced by the company in achieving its objective of maximizing profits. The three main problems are setting up an optimum price of its products, identifying the target markets and making effective marketing strategies in order to ensure effective global expansion.

ELASTICITY OF DEMAND OF COMPANY’S PRODUCT

The elasticity of demand of the company’s product is very high because a slight in change in the price changes the demand of the company’s product at a very high rate. Moreover, this demand is also affected by the prices of the products of the competitors in the market. Since the competition in the market is high, in which the company is operating, the consumers will shift towards the brand that offers the high quality product at a substantially low rate.

Moreover, the top management of the company should also consider the elasticity of demand of its products while formulating a pricing strategy for the products. Since the elasticity of demand of the company’s product is very high therefore, if the company offers high price of its products than its competitors then there is a risk that the sales volume of the company will decrease as the customers will be shifted towards the competitors that will subsequently decline the sales volume of the company.

Furthermore, the high elasticity of demand also gives opportunities to the company to make bulk sales by reducing its prices. Due to high elasticity of demand the consumers will attract readily to the company i\f the company offers its product at a low price. This will enable the company to enhance its sales volume drastically. In addition, the company should also remain conscious while lowering its price that the price should not be set too low that it is unable to cover-up the costs of the company.

The high elasticity of demand also allows the company by attracting customers by providing them with exceptional customer care services as this will also help the company in capturing a huge share in the entire market. Moreover, this will also allow the company to secure a leading position in the entire industry.........................

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