In: Economics
Grillaz, is a fast food restaurant in Jamaica, that has grilled chicken, shrimp and sausage on its menu. Surprisingly, one of its top selling items is actually a juice which is made from a blend of mangoes, pineapples and melons. They currently buy the juice from Fruitville Manufacturing Company. The demand is so high that Grillaz is now seriously thinking of branching off into manufacturing its own juice for sale in plastic bottles in the trade – supermarkets; convenience stores, bars, etc. They are planning to do other fruit blend juices to include fruits that are available in Jamaica such as guava, papaya, pomegranate, apple, June plum and bananas. They are thinking of calling their juice Coolaz.
There are a number of factors that they are considering, including whether consumers would switch from buying Tropical Rhythm from Grace to buying their juice. They are also aware that juices are imported into the country and are available in most distribution outlets. They are also aware that smoothie bars are ‘trendy’.
They brought you in as a marketing consultant, as they have no idea how to proceed.
Question 1:
Identify and describe the strategic growth approach that Grillaz will be taking to grow its business should it go with the option of manufacturing fruit juices.
[CLO 2]
Question 2
You are aware that a company must evaluate its micro and marco environments to ensure that it is making the right management decisions to support business growth. Given the case, advise Grillaz of two micro (task) and two macro (broad) environmental factors that they should consider in formulating its plans to enter into the juice business. Justify your answer.
[CLO 2]
Question 3
The best way to find out whether consumers will support your product is to conduct a market research. Recommend a research method that Grillaz could use to determine how consumers would likely respond to its juice – Coolaz vis-à-vis Tropical Rhythms.
Ans for Q1)
Grillaz is a fast food restaurent in jamaica. In the given question it is specify that they planned to start a juice manufacturing unit along with the restaurent. This is because of the fact that their top selling item is a juice. Customers shows more demand on that. The strategic growth approach is a business approach where these growth strategy allow companies to expand their business. These can be achieved by adding new business location, business plans, and also product diffrentiation. In this perticular case the product diffrentiation strategy playing vital role. Every organization after achieving a perticular target or after achieving certain level will definitly plan for product diffrentiation. Product diffrention meance introduction of new product line into the market. No doubt we can say that hear company took Product diffrentiation strategy.
They can go with this project. Afterall the product that the company producing have quality definitly customer will demand it. So we can say that there is no other problems for introducing new product line. But at the same time they should careful about one thing that introduction of new product in todays highly competative market is not easy. Besause they starting a new product line they have to face tough competation from other well known companies , their brands are already famous. They need not to worry more about that. So we can brief that if the new company can provide quality product , definitly they will become success. Otherwise not.
Ans for Q2)
It is very much important that every company should understand their Micro (inside the company) as well as Macro (outside the company) environment. There are many type of micro and macro environments.
MICRO ENVIRONMENT : Customers , Competitors.
MACRO ENVIRONMENT : Demographic , Political.
Customer (micro) : These are the people who buy the products. Customers are closely related to every business thats why it is carried on Micro environment.
Competator (micro) : Competators are the other organization that compete or fighting for eachother for the market achievement.
Demographic (macro) : This meance the People. So the marketers should keep concentrated on demographic. These include all kind of characteristics of population such as size,growth,density .
Political (macro) : Before entering a new business or deciding to produce a new product line company should aware about political and legal status of the country. What rule does it need to obey does the government encourage organizational improvement...etc
Ans for Q3)
To find whether the customers support their product it is verymush important to conduct a market research. For conducting market research they can use diffrent techniques.
Survey methode , Interview methode , Focus group methode , Observation methode , Social media campaign method.
All of these methodes are good . But from this; the Observation method are more effective I think. Because in observation methode the restaurent authority can closely observe the customers and they can understand the feelings and expressions of customers when they having that. It will give more accurate information.