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Alternatives for Juicy Pop Ltd

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Submitted By krystalbajangirl
Words 641
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In order to advance its sales of USD 1M per month and attain a contribution margin of 32% plus, Juicy Pop Ltd can consider the following
Do Nothing
Juicy pop can opt not to enter the Martiniquan market
Pros
1. Will not have expenses in relation to changing of labels to meet the requirements of the food and drug authorities and those related to exporting
Cons
1. Will not be able to gain the 10% market share so badly needed to realize export sale of US1M per month 2. Under utilization of the technological expansion made to the plant which can now manufacture 15 million cases of product a year which far exceed the demand for the product in Caribisle 3. Loss of US10M investment made to expand the company which was finance by US dominated loans. 4. Mr. Knight losing his job since he would certainly not be able to meet his sales target of US1M per month and attain a contribution margin of 32%
Market Penetration Strategy
When the product is in the current market, it can still grow. However, there is no change made to the original product.
Pros
1. The company can encourage current customers to buy more with competitive pricing. This may cause quick distribution and acceptance of the product in the currentmarket.
2. Attract competitor’s customers by making adjustments to its product design,
3. Convince non-users to use the product through advertising and distribution efforts by adding direct-to-consumer distribution channels becoming a wholesaler
4. It is the least risky

Cons 1. Lost opportunity to capitalize on the Martiniquan market and gain the export sales needed. 2. Possible continued loss of its market share since there is no guarantee that the new product design will make much of a difference in an already saturated market. 3.

Market-Development Strategy
When the current product is launched in a new market an

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