ipl-logo

CR2 And Herfindahl-Hirschman Index: A Case Study

1784 Words8 Pages

The Two-firm and Four-firm Concentration Ratios (CR2 and CR4) and Herfindahl-Hirschman Index (HHI) are methods in measuring market concentration. Both methods rely on determining the market share of each individual firm within a given market. CR 2 and CR 4 are calculated by adding the two and four largest firms’ market share. For instance, in a perfectly competitive market with 100 firms, CR4 will be 4×1/(100 ) =4%.
The HHI is calculated by taking the square of each firm’s market share and then adding all of these squared shares together. Markets in which the HHI is between 1,500 and 2,500 points are considered moderately concentrated and those in which the HHI is greater than 2,500 points are considered to be highly concentrated. While below …show more content…

It characterizes the space occupied by a particular product in the minds of consumers to the product competitors. The product should be perceived a certain group of target consumers as having a clear image that differentiates it from competitors ' products. The position of the product directly affect the reputation and image of the company as a whole. Ranking product have to be based on estimates of the consumers in the market of a certain product, for selection of these parameters and elements of a complex product marketing standpoint that a targeted consumer product provide a competitive advantage. The price may be a key parameter for the purchase of beverage in considering of …show more content…

Market segments help the company to improve their products and services, knowing needs of their customers and innovate new sectors. Coca-cola distribute their business in few operating segments which are Eurasia and Africa, Europe, Latin America, North America, Asia Pacific, Bottling Investments and Corpora. They markets the products selling into different market, such as Diet coke and Coke Zero. Coca-Cola uses the consumer segmentation criteria and market into different groups of behavioural, psychographic and profile. Coca-Cola creates value to its brands and with good performance to convince people to buy their products. The company heavily invested lots of capital to advertise the products all over the world. While earning good profit, innovation still one of the important strategies in Coca-Cola to gain more wealth. Different new products and packages could attract people to buy. For instance, to run a success business, a firm must know how to dissolve in different culture. Coca-Cola knows people from different culture, so they use their innovation to mix different cultures. Coca-cola came out with cans of Coca-Cola drinks with design of Chinese New Year during festive seasons to boost up their sales and celebrating festives with their customers. Coca-Cola focus more on market and work smart. Generally, comparing with old generation, Coca-Cola seems more popular in the younger groups. Besides, the company follows the mass marketing

Show More
Related
796 Words | 4 Pages

You asked me to define "The American" and whether or not founding fathers like Benjamin Franklin, Thomas Payne, and Thomas Jefferson were the pioneers of the idea. The first major problem with this question is that Thomas Payne definitely wasn't American, after all, he was kicked out post-revolution for subversive ideas such as "Women Rights", "Banning Slavery", and "Atheism". The other hero here, Benjamin Franklin, was well aged by the countries actual founding. In fact he was eighty-three while attending as a delegate for the constitutional convention.

Read More
537 Words | 3 Pages

Crohn's Disease Crohn’s Disease is a disease that causes inflammation in the small intestine. Millions of people all over the worldwide are suffering from Crohn’s Diseases. In 1932, Crohn’s Diseases was referred to as a medical illness and it was described by Dr. Crohn, Dr. Leon Ginzburg, and Dr. Gordon Oppenheimer. But it all started in 1913 by a physician named Kennedy Dalziel who had a meeting with the British Medical Association, and described his nine cases with patients who suffered from intestinal obstruction. One day with a close examination of the inflamed bowel of a patient, the transmural inflammation that is characteristic of the disease was clearly evident.

Read More
51 Words | 1 Pages

William Ecenbarger 's Pennsylvania Stories—Well Told, was reviewed in the June 21 issue of the Press Enterprise. The review read, "Reading the stories is like listening to your favorite quirky friend. The language rolls like a perfectly poured beer into a glass, gleaming gold and with just the right amount of froth."

Read More
590 Words | 3 Pages

What is the NCLEX? The NCLEX examination is a national test taken by nursing students to certify they are ready to practice in the field. Nursing students who have passed all their classes, and are ready to graduate, will take the test and hopefully receive their registered nurse certification. There is a great deal of history behind the exam.

Read More
196 Words | 1 Pages

For the fifth consecutive year, Ivie & Associates has been recognized by Inc. magazine as one of the top-ranked private companies. The 36th annual Inc. 5000 list ranking the nation’s fastest-growing companies was released in August, honoring Ivie, a five-time award winner and now Hall of Fame inductee, based on three-year sales a growth. Ivie’s 2017 ranking reflects growth of 67% from 2013-2016. For 36 years, Inc. has welcomed the fastest-growing private companies in America, and this year’s set of winners placed the bar very high.

Read More
1355 Words | 6 Pages

JB Hi-Fi Limited (JBH) 1. Macro economic factors and Industry Analysis a. Describe the firms economic environment and evaluate how this has impacted historic firm performance and is likely relevant to future performance. b. Perform an industry analysis and evaluate the level of competition in the industry/ies that your firm operates 2. Business Strategy Analysis Identify the key success factors and risks of the firm 's strategy and the sustainability of profits generated by the strategy given the threat of competition.

Read More
1405 Words | 6 Pages

Market size: this factor has great effect of the Crescent pure product according to the market research the market for energy drink is growing 40%, in the year 2010 to 2012, and its revenue forecasted from 2013, is $8.5 billion to $ 13.5 billion in 2018.It’s means gap for the further potential is prevail, in this situation the company should position in such away which is new for the customers. Consumer Perception: this factor also affects the positioning of the product because with the help of this factor firm know the behavior of customers about the product. If we look to the example of Crescent they have low price strategy over the rivalry, some consumer said that this low quality product. Brand reliability is the factors which inspiration the crescent positioning approach, alteration in the brand can result in change of product

Read More
713 Words | 3 Pages

Well to start off the Coca-Cola Company has been around for a little over a hundred years and has flourished in their market. Like any large company, the reason they are targeting the African market is simply the reason they are seeking for new opportunities for future potential growth within the market. This search in opportunities for potential growth is due to from the fact that many of the companies markets outside of Africa are mature, saturated, declining or are experiencing and increased number of competition. Another prime motive as to why Coca-Cola is interested in Africa because they connect through Africa's incomes that are increasing, along with Africa's infrastructure and government which is also improving. Also, Africa’s population

Read More
1041 Words | 5 Pages

5. TIME The demand for Coca Cola increases during festivals like Diwali and Christmas. Coca Cola the brand is positioned as a universal icon of happiness and hence a more preferred brand during festivals SUPPLY CURVE

Read More
777 Words | 4 Pages

When determining the type of market in which certain goods are sold, there are couple main points to think about: are there many competitors, are the goods homogeneous or heterogeneous and is there free entry and exit in the long run? In our case, there are a lot of sellers in the market, more than 200. Goods, even though can seem to be similar, are heterogeneous. Hotels can differ by location, room quality, size, skill of employees, entertainment, outdoor activities and so on. Also, there is free entry and exit to and out of the market.

Read More
1201 Words | 5 Pages

There are also two other market groups that can be targeted are “aspirers” (people who hope to join middle class) and high-end class. In the future, small towns can also be targeted because there are plenty of households and it is considered to be 30 percent of the whole

Read More
1388 Words | 6 Pages

Among them, coca cola’s products are generally made available through intensive distribution. Intensive distribution for the newest product has allowed to maximize contact with customers and become very successful. It usually goes with heavy promotion, lower prices and large target market. Coca cola’s product are mainly distributed in a wide variety of locations including corner stores, convenience stores, restaurants, hotels, shopping mall petrol station and many, many

Read More
1093 Words | 5 Pages

Coca-Cola Company is one of the premier global consumer brands. The company has been around for a century and has been growing constantly. Today Coca-Cola manufactures more than 500 sparkling and still brands that are sold in more than 200 countries around the world. Coca-Cola’s main competitor is Pepsi. Therefore,

Read More
1304 Words | 6 Pages

For instance, Carrefour will not waste their resources on advertising because they have already identified a specialized market for their fruits. Market segmentation helps the company to serve better their customers and attracts more; thus, helps in gaining competitive advantage. Lastly, market segmentation helps organizations to create a sustainable customer relationship, which contributes to increasing their loyalty. It is because it allows the firm to provide products that satisfy customer needs and preference and they can cater for their changing pattern of behavior over time.

Read More
785 Words | 4 Pages

This aims at developing a deeper consumer desire for the brand, thus giving people more reason to purchase Coke- Cola products instead of competing brands. This is the essence of differentiation. Coca-Cola having an 'action orientation', instead of waiting for change to happen it is at the leading edge, driving action forward. This product differentiation strategy has created global value, brand loyalty, non-price competitor as well as no perceived

Read More

More about CR2 And Herfindahl-Hirschman Index: A Case Study

Related Topics

Open Document