Buyer Power

In: Business and Management

Submitted By malibu11731
Words 615
Pages 3
High Buyer Power
- Large number of customers o What are our desired customer characteristics? What is our theme? o Loyal customer base o Reputation as a place out-of-towners need to visit. Cater to student and prospective student families and out of town fans attending WFU sporting events.
- Small differences between competitors o Try to reduce buyer power through distinctiveness. o Try to differentiate with excellent, super-friendly service. Use fresh and highest quality ingredients. Have both standard and special menu items. Good selection of healthy offerings. Include two-three seasonal or specialty type items on menu every day. Include at least one super-healthy offering on the lunch and dinner menus. o Donate unsold, prepared food to food kitchens.
- High sensitivity of price means that it’s difficult to charge high prices due to many competitors. o Price in middle-high-end ranges. o Offer at least a fewer lower-cost offerings so as to not completely limit our clientele.
- High availability of substitute products o All kinds of restaurants, bars and coffee shops. o Energy drinks, soda, home brews.
 Develop our own branded coffee for the brew-at-home market.
- Switching costs o Frequent buyer program. o Daily specials. Special of the day. o Free coffee refills all day. Do not need to save cup or receipt, just use loyalty card as it will store necessary qualifying purchase. o Position ourselves in a unique way to add value to the experience so that there is no substitute to our café.
Supplier Power- Low or medium
- Low volumes with many suppliers minimize supplier power while product/experience/service differentiation allows us to pass on customer costs to customers.
- Do we partner up with a few food/beverage suppliers to get volume discounts and reduced prices or…
- Buy from many local producers/companies to minimize supplier power…...

Similar Documents

Buyer Behaviour

...understand well of the needs of Upland’s customers. Role Play 2 1. Dialogue Bonnie: Good Morning Ms Reed. Thank you for taking your time out for me. Rhonda: No problem at all. Have a seat. Bonnie: With regards to the presentation I will be doing ay Stellar College, I have decided to focus on the viability of relationship selling and to reach an understanding on how sales people are in the real world. Rhonda: Yes, that will be a good head start. However, it will be feasible as well to throw in the benefits of how our industry works so as to entice them as well as demolish the stereotypical views. Bonnie: You mean being for sales people to be focused on only the transactional part of the selling career, exploiting the buyers and also aggressively persuading and pestering the clients? Rhonda: Yes, to think that you are able to say it right off the bat proves that there are standard negativity towards sales people in their job. You need to convince them of the benefits we have in this challenging working environment. Bonnie: How would you propose I’d do that? Rhonda: In order to be able to convince, you have to treat all the students as our company’s prospective clients. Enable yourself to build a relationship with them and walk them through the thought process of being a sales person and what in brings to you. How would you think being in this career has helped you? Bonnie : Well, for starters, it has allowed me to have more control of my......

Words: 7826 - Pages: 32

Buyer Power

...1) Buyer power is high when the buyers have many choices of whom to buy and low when there are few choices. 2) Supplier power is high when the buyers have few choices of whom to buy and low when there are a lot of choices for buyers. 3) threat of substitutes products is high when there are many alternatives to this product and low when there are few alternatives for this product or service. 4) threat of new entrants is high when it is easy for new competitors to enter the market and low when there are significant entry barriers to enter the market. 5) Rivalry among existing competitors is high when the competition is fierce in a market and low when the competition is complacent. 2) Example: Bookshop: The buyer power is high because the buyers have many choices of whom to buy like City Lights and Strand bookshops. In order to have competitive advantage the bookstore should offer loyalty programs to their programs such as “the 5th book is free”, “10% discount for purchased 20 books”. Supplier power is low because the buyers have a lot of choices to shop in different shops. Threat of substitute products or services is high because you can order books online. In order to have competitive advantages I would try to use switching cost. I would offer my customers to order their books through the telephone or mail so I will deliver them the book free without any additional cost. Threat of new entrants is high because it is easy for new competitors to open a shop. It does not...

Words: 506 - Pages: 3

The Power of Buyers in the Publishing Industry

...and with all the changes in technology, buyers bargaining power has increased greatly. With the emergence of companies like Amazon.com and online stores like Half Price Books.com (where you can buy school books or any book) university book stores and big chain stores now have to compete buy price. Stores like Barnes & Noble have to compete buy price because now-a-days all you have to do is do a Google search of whatever book you what to buy and the search will come up with thousands of hits of people wanting to sell you that book. Also with devices like the kindle, and iPad, readers can buy eBooks and download them rite to that device for a discounted price. Stores that have already adopted the new way of buying and reading books such as Amazon will survive a downfall in actual published books because there philosophy has always been online and competitive. Barnes & Noble over the last few years has started to do more on-line sales and they specialize in sales of eBooks for the Nook, which Barnes & Noble came up with to compete with other e-readers. There are two types of buyer power. The first is related to the customer’s price sensitivity. If each brand of a product is similar to all the others, then the buyer will base the purchase decision mainly on price. This will increase the competitive rivalry, resulting in lower prices, and lower profitability. The other type of buyer power relates to negotiating power. Larger buyers like Barnes & Noble tend to......

Words: 507 - Pages: 3

Buyers

...Describe the organizational buyers and consumers of your product or service and the factors that influence their purchasing decisions.     The organizational buyers of the Diabetic medication are pharmacies, and hospitals. Organizational buyers are also group purchasing organizations, ”The hospitals and local pharmacies can join the group purchasing organization to get a better price on purchasing large volumes of drug products.”(Jacobsen &Wertheimer 2010) Another organizational buyer is “wholesalers who purchase medication to be kept at their distribution centers and sold to members of a group purchasing organization.” (Jacobsen & Wertheimer 2010) The Government is also an organizational buyer. The end use buyers or consumers would be the patients or parents of children who are diabetic.    There are many factors that influence the purchasing decision of both the organizational buyer and the end use buyer or the consumer. The first factor that influences the buyer is that of price. How much will this medication cost and how many do they get for that price. In dealing with hospitals, the military and local pharmacy is that of inventory. These organizational buyers need to know the length of time it takes for orders to be delivered. The Military with troops across the world need to have medications that the men and women of the armed forces need with them not back at the pharmaceutical company. In some hospitals and the military clinics and hospitals these organizations......

Words: 526 - Pages: 3

Organizational Buyer

...Describe the organizational buyers and consumers of your product or service and the factors that influence their purchasing decisions.     The organizational buyers of the Diabetic medication Glustasis are pharmacies, and hospitals. Organizational buyers are also group purchasing organizations, ”The hospitals and local pharmacies can join the group purchasing organization to get a better price on purchasing large volumes of drug products.”(Jacobsen &Wertheimer 2010) Another organizational buyer is “wholesalers who purchase medication to be kept at their distribution centers and sold to members of a group purchasing organization.” (Jacobsen & Wertheimer 2010) The Government is also an organizational buyer. The end use buyers or consumers would be the patients or parents of children who are diabetic.    There are many factors that influence the purchasing decision of both the organizational buyer and the end use buyer or the consumer. The first factor that influences the buyer is that of price. How much will this medication cost and how many do they get for that price. In dealing with hospitals, the military and local pharmacy is that of inventory. These organizational buyers need to know the length of time it takes for orders to be delivered. The Military with troops across the world need to have medications that the men and women of the armed forces need with them not back at the pharmaceutical company. In some hospitals and the military clinics and hospitals these......

Words: 527 - Pages: 3

Bargaining Power of Buyers

...that carry out by the organization such as no plastic bag on Saturday for all the shopping mall and people give an enthusiastic response for supporting this green activity. There is more and more people start to concern about the environmental problem and they are willing to purchase recyclable products. Due to this factor, Green Paradise Budget Hotel arises with green concept budget accommodation as selling point. Economic Factor Based on World Economic Outlook (WEO) research found out that the global economic growth dropped about 3 percent in 2012 and it predicted that this slow growth trend are likely to be continue. This show that the gross domestic product (GDP) of many countries is difficult to increase and meanwhile the purchasing power of tourists are decreasing. They will prefer more on budgeting trip than luxury. Therefore, Green Paradise Budget Hotel offer tourists the lowest price rate of accommodation and the company believe that it can gain larger profit by attracting larger amount of customer. Threats of Substitute For Green Paradise Budget Hotel, the threats for substitute is consider relatively high. This is because there are many competitors which exist around this hotel that act as the substitute for the customers if they do not choose to stay in here. When the threats of substitute that the hotel is facing are high, the industry profitability index will be suppressed strongly. This is due to customers will have more options to choose when......

Words: 4404 - Pages: 18

Senior Buyer

...Professional – Buyer | | | | | |Mobile: +971 50 137 2700 - E-mail: jammucom@yahoo.co.in | | | | |Gulf experienced professional equipped with 18+ years of progressive work exposure and record of achievements within the domain of logistics industry. | |Expertise in various logistics aspects including but not limited to: procurement, purchasing, buying, inventory control, material management, warehousing, | |vendor management, logistics operations and client servicing. Strategic thinker with a flexible and proactive approach in continuously developing process | |improvements. Astute in identifying areas in procurement systems, processes and operations in need of improvement with the vision to develop and implement | |successful action plans. Creative thinker and effective team leader who possess good planning, monitoring, analytical, coordination, organizing, | |communication, interpersonal and time management skills. Seeks a challenging......

Words: 1258 - Pages: 6

Buyer Buyer

...Buyer Buyer 1 Buyer Buyer When we as consumers think of making a purchases there are so many things that go through our heads, what to buy, price, location to make the purchase. These are the same thoughts that a manager has go through when they make large quantity of purchases, but there’s purchases are on a larger scale. When you are a consumer you want the quality of the product and also pricing must be reasonable. If traveling to a certain location, the question is does it take a lot of gas? Searching on the internet brings on the question, is this site safe and does this site take debit our credit? Some stores will sell refurbish items. What is the return policy if I don’t want the item? The first item I have chosen is a 70” flat screen television, the brand is Vizio it is a LED “235 ultra-slim 1080p 120HZ HDTV E7-li-A3, and the cost is only $1, 689.00 this does not include taxes and I looked around at Kmart and Target and there cost was about $30.00 dollars higher. With this Vizio Razor the resolution is very clear picture and also smooth display for the action scenes with a stunning detail and clarity. This television in the customer review is the number one choice. When choosing a television you must think of the environment, and if it the family will enjoy your choice. 2 My second choice would be shoes for the family or for you. There are billions of shoe sold all around the world from year to year. How we as consumers make the difficult choices of the......

Words: 599 - Pages: 3

Buyer Behavior

...Campus Principal Instruction Mode Name and contact details of offering coordinator MKTG 1052 Buyer Behaviour Singapore Lectures and online support Dr Kaleel Rahman School of Economics, Finance and Marketing RMIT University, Melbourne, Australia kaleel.rahman@rmit.edu.au Name / contact details of other relevant staff Visiting lecturers: Dr Kaleel Rahman / Dr. Linda Robinson / Mr. Brian McCauley Teacher guided hours Learner directed hours Course Description 36 108 Concentrating on buyers needs is fundamental to the marketing concept. The emphasis of this subject is to look more closely at the buyer, covering the factors effecting: • • • • • why people make purchase decisions what products (goods and services) people buy how people go about the purchase process the frequency with which people purchase the buying decision process It is crucial that practitioners are able to usefully apply these buyer behaviour concepts to their marketing programs. The increasing complexity, competitiveness and change in today’s markets require a marketing practitioner to have a thorough understanding of buyer behaviour theories and dynamics if they are to have a competitive edge. MKTG 1052 BUYER BEHAVIOUR S1 2014 Course Guide 1 On completion of the course, students will normally be able to: Learning Outcomes • • Develop familiarity with the theories of buyer behaviour in consumer markets. Enhance their abilities to appraise models of consumer......

Words: 3468 - Pages: 14

Buyer Behaviour

...MKT 2240- BUYER BEHAVIOUR THE BEHAVIOUR OF THE YOUNG TOWARDS LUXURY PRODUCTS WORD COUNT 1709 Submitted on: 2nd Sept 2013 Module Coordinator: John Sutton Content Introduction 3 *Luxury Background 3 *Today’s Youth 4 Consumer Behaviour 4 Self Concept Theory 4 The ‘A B C’ Attitude model 6 Conclusion 8 References List 9 Introduction "Luxury is a necessity where necessity ends." Coco Chanel The main purpose of this research is to find out what creates a spark in the youth of today when it comes to buying luxury products. For some it may be status and recognition for the others it may be comfort and quality, it may vary from people to people due to their personality.......

Words: 1891 - Pages: 8

Buyer Behaviour

... Product Analysis ii RMIT International University Vietnam Bachelor of Commerce Program Assignment Cover Page Your assessment will not be accepted unless all fields below are completed Subject Code: Subject Name: MKTG1253 Buyer Behaviour Location & Campus (SGS or HN) RMIT Vietnam SGS Title of Assignment: Product Analysis Student name: Nguyen Thi Thuy Huong Ta Trung Kien Huynh Bich Tram Truong Bao Tram Le Nguyen Hong Van Student Number: S3311318 S3259028 S3298222 S3298834 s3210260 Learning Facilitator in charge: Mr Mattia Miani Assignment due date: 22nd August 2011 Date of Submission: 22nd August 2011 Page numbers including this one: 32 Word Count: 3,048 (Main Content) iii Marked by Mr Mattia Semester 2, 2011 iv v Executive Summary As being aimed to demonstrate better understanding of buyer behaviour concepts and improve critical thinking by examining a real case of business, this report is written regarding a new brand in food and beverage market in Vietnam: BreadTalk bakery from Singapore. Through a brief overview of the company and Vietnamese market’s dimensions, the variety of used stimulus is presented with captured screenshots and pictures from both the origin country and Vietnam’s BreadTalk bakeries. The report afterward discusses the internal influences and culture values that are imperative affections of consumer behaviour, before gives some recommendations at the end. In the introduction, BreadTalk’s company overview, main......

Words: 4228 - Pages: 17

Bargaining Power of Buyers

...bargaining power of buyers - relatively low power for buyer, since oly few players in the market the buyer has less control over the products, the demand is more and the supply is less. Even now in most of the countries printing play a vital role in the education industry where the printed industry has its control over the buyer. bargaining power of suppliers - moderate influence of suppliers, suppliers who provide the raw materials for the printing industry such as paper pulp, dyes. These suppliers have a moderate control over the industry since there is quite a few number of industries which supplies these materials. Rivalry within d industry - high degree of competition, every nation has several giants in printing industry either in media or the vice versa, hence to catch hold of the market share each player offer prices as low as possible by adopting several cost cutting methods and adopting several innovative methods. Hence innovation is in a continous drive in printing industry threat of new entrants - relatively low, less small scale industry since huge investment is reqd, existing players are of king size,very attractive component for companies who can overcome the barriers because of the excellent stability presented but poses a significant problem for potential entrants. threat of substitute products - there is a great threat from substitute products. Hence constant innovation is required. Tv, internet and ebook readers are the potential threats in......

Words: 272 - Pages: 2

The Bargaining Power of Suppliers and Buyers

...Poter’s five forces 1, the bargaining power of suppliers Haidilao Pot has its own four large modern logistics center and a raw material production base, it uses Backward Integration Strategy on its raw material, the company is a large enterprise with national chains in China, the need for raw materials is large, enhance their ability to bargain, recently some vegetables (cabbage, etc. ) oversupply, causing prices to fall, this is good for the company’s business; Shuanghui clenbuterol issue regulations require companies to make safety requirements for food, meat supply is under attack, but also good for the company’s business. It means suppliers has low influence on the company. 2, the bargaining power of buyers Haidilao’s guiding strategy is service differentiation, maximum to meet customers’rationalize requirements. In Haidilao, even waiting for seats can be enjoyable. There are different drinks and kinds of chess on the desk, newest play cards aside and services like nail care for women and shoe care for men available all the time. During dining, you are provided frequently with warm hand towels, a pinafore with ethnic feature, hair string for girls, glass cloth in case that the drop splits to your glasses and a small plastic bag to put your big screen cell phone in. Every waiter and waitress has the right to give you a free meal in particular situation. These uncommon attributes attract more and more interest. On the products, the company will......

Words: 254 - Pages: 2

Bargaining Power of Buyers

...Bargaining Power of Buyers The existence of influential buyers lessens the profit potential in any given industry. They fuel competition by decreasing prices, bargaining for better quality or more services and playing rivalries opposed to other market giants. The consequences include diminished trade profitability. The bargaining power of buyers involves one of Porter’s five forces which regulate the intensity of an industry. The rest includes; Barriers to entry, industry rivalry, threat of substitutes and the bargaining power of suppliers. The influence of an industry‘s significant buyer groups are determined by: * Relatedness to market situation characteristics * The relative significance of trade from industry as measured against the overall business Below conditions conclude the powerful nature of a buyer group: * The buyer is either concentrated or purchases large quantities * Products obtained from the industry represent a noteworthy percentage of the purchases or the costs of the buyer * Purchased products are undifferentiated or standard- substitutes are easy to find as the competition is tough * Switching costs are very low * The backward integration threat is high * Buyers are price sensitive * Buyer possess necessary information ( they are fully aware about the market prices and supplier costs) Product differentiation is one of the conditions that affect the power of buyers. Chocolate is regarded as a standard product......

Words: 491 - Pages: 2

Power of Buyers-Si Project.

...Power of Buyers * price sensitivity * No brand identity, customer more care about price rather than which drug store to buy * No bargaining leverage * buyer volume * No buyer switching costs, same drug they can buy at any drug store * product differences * No brand identity, costomer more care about price rather than which drug store to buy *  Many key players are acquiring small stores, industry concentration Advanced 5 forces Analysis * Population aging * As the population ages, demand for pharmaceutical products to address health ailments, such as chronic illnesses, typically rises. * According to data from the Centers for Disease Control and Prevention, an estimated 89.7% of individuals aged 65 and older used a prescription drug during a 30-day period between 2009 and 2012 (latest data available). As a result, the industry benefits from strong need-based demand for prescription drugs from this age demographic. In 2015, the number of adults aged 65 and older is expected to increase. * External competition for the Pharmacies and Drug Stores industry * Pharmacies and drug stores face mounting competition from mass merchandisers (e.g. discount stores, supercenters and warehouse clubs), mail-order prescription providers, online pharmacies, convenience stores, wholesalers (e.g. Costco) and health clinics. Due to intensifying competition, the industry will contend with many external competitors cutting into consumer demand...

Words: 542 - Pages: 3

รายการ โนวา มิติสู่อนาคต | HD Ralph Breaks the Internet | Slayers Try