Question

subject :- Marketing

Choose a product and brand that you like and/or use.
What are some factors that are likely to affect demand for this product? How can the marketer "shift the curve to the right"?
From the cost perspective, what are some examples of fixed and variable costs for this kind of product?

Answer 1

Nescafe: Coffee.

Factors that are likely to affect demand for this product are:

• price of substitutes, like, Bru, Davidoff, TataCoffee, to name a few (if the prices of these fall, the demand for nescafe falls)
• price of complements, like, milk, sugar, to name a few (if the price of these rise, the demand for nescafe falls)
• a study determines the harms of caffeine consumption, the demand might fall due to this, or,
• a study determines that caffeine is suitable for certain productive activities, the demand might rise due to this.

Proper advertising is a game changer for marketing any product. It needs to appeal to the contemporary customer needs, wants and trends. Distinguishing the product from other similar ones available in the market will also help. Figuring out alternative uses and advertising on its behalf is also a way. For example, using coffee in baking, or making different drinks.

From the perspective of a producer, there are both fixed and variable costs associated with producing coffee.

The fixed costs will stay the same however much is produced. For example, rent/lease/contract, it stays the same irrespective of how much coffee is produced.

Variable costs vary with the quantity produced. Costs incurred on raw materials, wages of the employees, labour, etc.