The market demand of Chechil cheese in Bloemfontein

[摘要] Innovation is the only undisputed catalyst for growth and wealth creation over thelong term. However, launching a new product entails significant risk for establishedas well as new businesses. In order to minimise some of these risks, demandforecasts are necessary to construct the commercial elements of the business (orproduct line), create revenue models, predict profits and cash flows, judgefeasibility, define suitable pricing structures and levels, and quantify financingrequirements. This study determined demand for Chechil cheese as a new productin Bloemfontein in order to guide future decisions during the new productdevelopment and launch process.Demand was measured according to three criteria. First, respondents were asked towhat degree they liked or disliked the product on a five point scale. Second,respondents' reactions are substantiated by determining whether they wouldrecommend the product to a friend, colleague or relative. Last, price sensitivity wasmeasured by determining each respondent's likelihood to purchase 100g of theproduct at R30, R45 and R60. It was found that the overwhelming majority ofrespondents indicated that they liked the product and that they would recommend itto a friend, colleague or relative. Respondents indicated inelastic demand betweenthe R30 and R45 price points and elastic demand between R45 and R60.Findings from this study could be used in conjunction with further internal analysisof the business' supply curve in order to establish the optimal price point to launchthe new product.

[发布机构] University of the Free State