Untitled drag and drop text question
- Variable cost
- Fixed cost
- Increase prices
- Imported recipe
- Raw material
What can Laura, Anna and Tom do to make sufficient profit in the next two weeks?
- Increase revenue
- Adjust cost structure
- Analyze external factors and act accordingly
How can Laura, Anna and Tom increase their revenue?
- The customer segment for organic lemonade is price insensitive. Thus it would make sense to cut the price and in order for them to sell more lemonade.
- The revenue could potentially be increased by introducing add-ons such as sliced lemons.
- The customer segment for organic lemonade is price insensitive. Thus it might be smart to raise the price and benefit from the fact that the customers will buy the lemonade anyway.
How can they benefit from taking external factors into account?
- Laura, Anna and Tom have analyzed possibilities for changing the location of the stand. Relatively many people are walking through the park during the day compared to their current position. Thus, they should locate their lemonade stand to the park.
- There is high demand for organic lemonade in the city center. However, there are also many lemonade stands who take advantage of this, which has led to a massive price decrease. Thus, they should move to the city center to overtake all the customers.
- Most people have preferences for organic lemonade compared to regular lemonade. Thus it might be smart to create a homemade banner to increase the awareness of their premium lemonade product.
How to change cost structure?
- The price of organic lemons have doubled. Thus it would be wise to buy in bulks/bigger portions to gain discounts.
- Change the slightly more expensive paper cups to a plastic cup since a plastic cup fits the price insensitive segment better.
- Most of the people walking through the park are not in a hurry. However, it would be wise to buy an automatic lemonade machine which produces the lemonade much faster. The machine is relatively expensive.