Case 4.0 AligatorAde, a Regional Soft Drink Bottling Plant, Produces According to According

question 37

Essay

Case 4.0
AligatorAde, a regional soft drink bottling plant, produces according to the forecast it receives from corporate headquarters. The company uses the focus strategy, designating a market of persons involved in athletic sports. AligatorAde sponsors a local lacrosse team and has a reputation for positive support of sports activities.
On the few occasions when production exceeds demand, corporate warehousing juggles the distribution so that the regional producers such as AligatorAde experience no significant loss. Although competitors have switched formulas several times, AligatorAde has not changed its formula because market demand for its product is stable. (Top management at corporate headquarters is considering adding a more fruity-flavoured drink to its product line, but a final decision has not yet been made.)
On the line, the manufacturing department produces large batches of its drink. The product is prepared for distribution in both cans and bottles. Occasionally at the end of a run, some bottles will have special team labels affixed by machine; profitability on those few special runs is particularly high.
The plant's organizational chart shows that there is a plant manager with four department heads reporting to her: manufacturing manager, administrative manager, marketing manager, and warehousing and distribution manager. The purchasing function is carried out in manufacturing, and what little R&D takes place at the regional plant is done in marketing.
-Refer to Case 4.0. Would you recommend that AligatorAde switch from its current strategy to a differentiation strategy that it markets to the public in general? Why or why not?

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Definitions:

Market Equilibrium

A condition in which the quantity of goods supplied is equal to the quantity demanded, often resulting in an optimal price for products or services.

Purely Competitive Market

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price determination by supply and demand.

Equilibrium Output

The level of output where the quantity of goods produced equals the quantity of goods consumed, and the market is in balance.

Total Revenues

The full revenue obtained from the sale of goods or services, before taking out any expenditures.