Long Term Investment Decision Of The Low Calorie Foods Essay

Long Term Investment Decision Plan that managers in the low-calorie, frozen microwaveable food company follow in anticipation of raising prices when selecting pricing strategies for making products response to changes in price less elastic. The low calorie frozen microwaveable food companies are presently operating under a monopolistic market structure. There are many sellers of the same types of frozen foods but are distinguished by packaging and/or ingredients used. The frozen food companies are undergoing the high cost of production in order to sustain the same level of profitability. This industry has evolved significantly over the years. Consumer purchase trends are regularly moving with the developing economic changes and causing increased pricing and inflation. This report will examine the steps that managers in the low-calorie microwaveable food market can take to face anticipated challenges. The survival of the low-calorie frozen microwaveable food is dependent on its sales volume in the midst of expected price changes (Plessis Doppegieter, 2012). The low-calorie microwaveable food company should aim at increasing their price to maximize profit in a monopolistic competition. Price elasticity of demand has a ma jor role here and offers the economic rational to increase or decrease the price based on this scenario (Hirschey, 2009). Managers could also sketch a plan that makes the changes in price less elastic by targeting brand awareness and product differentiation.Show MoreRelatedThe Food And Drug Administration1585 Words   |  7 PagesThe American family has come a long way from the what we use to know as the T.V. dinner of the 1950s prepared in the stove comprised of portions of meat, vegetables and dessert in the divided foil tray. 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