Question

What economic impacts do you think that covid-19 would have on the soft drink product/soft drink company , and what measures would you likely take as a manager/owner of the soft drink company .Draw any graph to illustrate

Answer 1

Covid-19 would reduce demand for soft drinks from D1 to D2 as consumers will buy less products from outside as they are visiting less number of restaurants. Plus as there are supply chain disruptions, less number of soft drinks will be available on time to consume and companies will offer products at discount.

As a likely manager/owner of the soft drink company, I would try to increase sales by collaborating with essential products which are needed in the market such as bread and chips. So that when the consumers try to buy such products, they will buy such drinks as there will be discounts on such drinks. As the consumers are not travelling outside, I will try to create advertisements wherein consumers are drinking such soft drinks while watching Netflix, this will increase relatability and connect with the audience. Will try to sell weekend combo packs online so that consumers will try to buy such soft drinks as an alternative to not spending outside on restaurants because of lockdowns.