Commodity Study

Commodity Study - new commercial to increase consumers’...

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The possible substitutes and the economies of substitution We think our possible substitutes could be milk powder, fresh goat milk, soy milk, or rice  cream. Both rice and soymilk are comparable to milk in protein, but lower in saturated  fats. Rice milk has a lower protein count than both dairy and soymilk. Some people have  difficulty digesting soy and may prefer a milk substitute made from rice. One can also  make one’s own milk substitute from soy or rice. Read more at: The potential risks of substitution for different commodities would end up with bad taste  or less tasty flavor for the ice cream. Some health concerns like the allergies to soybean.  We might also lose our customers' loyalty and interests in our products. Eventually, this  substitution would hurt our company’s performances. New process, new suppliers, and 
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Unformatted text preview: new commercial to increase consumers’ awareness would be expected to add or change. We realized that our consumer demand for ice cream is expected to be minimal during the forecast period. Value sales of ice cream are predicted to grow by 3% in constant terms through 2015 while retail volume sales are expected to grow by 1%. The 1% volume growth rate is an improvement over the -2% volume decline over the review period. Americans are expected to move back towards premium ice cream as the economy makes a slow recovery. An improving economy should also aid sales through ice cream parlors. However, if we chose to use the different source to substitute our major ingredient in our ice-cream, our sales would be expected to fall. Read more at:
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