{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

final marketing project paper

Married individuals and those who have children

Info iconThis preview shows pages 3–5. Sign up to view the full content.

View Full Document Right Arrow Icon
more likely to buy Reddi-wip are those whose household income is larger than $50,000. Married individuals and those who have children living in the house between the ages of 6 and 17 years are also more inclined to purchase the Reddi-wip product. It is also much more popular in the North East part of the United States than any other portion of the country. All of these examples have a dramatic effect on whether or not the consumer will purchase Reddi-wip because it is a luxury good. Economic Factors The current status of the economy plays a key role in the success of our product. Reddi- wip is a luxury good, which means that if the economy were to falter and decline, the first thing people would stop buying is luxury goods. This highly elastic demand for Reddi-wip requires constant moderation of current events and consumption patterns. The MRI Reporter showed that people with household income in excess of $50,000 we more likely to buy our Reddi-wip products. The World Bank stated on their website that as of 2011 the Gross National Income (or GNI) of the average American per capita in the United States was $48,450. This insinuates that our product is primarily bought by above average income Americans and if the current stagnation of the economy remains the same as it is now Reddi-wip products could see a drastic decrease in sales.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
However, our product add-on (the new twisting on cap), would have very little negative economic side effects onto people’s real income. Once production begins the new twist cap will have very little impact on the cost of production, because we are not drastically altering or creating a completely new product. This would make for an easy transition of removing the unaltered Reddi-wip cans to the new easier to use can. The only foreseeable effect the cap could have that would cause production to be postponed temporarily would be if the twisting cap would alter the can too much that the nitrous oxide spray contraption would no longer be functional. If the entire can needed to be altered to accommodate the new twisting cap then it is an infeasible add-on until the engineering team can make the can functional. It is unlikely that this would actually occur because of the minute change being made to the can. The new twist cap does not seem that ingenious or innovative but it could potentially gather many new and old customers. Because the twist cap will come to a relatively minimal cost to the overall production of the cans there would be no reason to alter prices, and even if prices were to be altered because of the cost of production they will be miniscule that the customers will not notice. This product differentiation would penetrate further into our current markets as well as possibly gather new markets as a result of the innovation. Many of our customers are mothers of families with children and at one point or another each of the family members will have used the Reddi-wip can. Consistently the users complain about the traditional cap; whether the cap can even properly be put back on, or when attempting to remove or put back on that the traditional cap releases some of the nitrous oxide.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}