In 2019, Prayuth Sinamoang, founder of Prayuth's Confectionaries (established in Sukhumvit, Bangkok in 2008), had created a strong cake product: Juicy Cakes.PRAYUTH'S PRAYUTH'S CONFECTIONARIES The Bakery industry in Thailand was highly fragmented, largely unorganized, and diverse. Prayuth's Confectionaries had piggybacked on the leading fast-moving consumer goods (FMCG) product distributors who promoted the cake to places of influence. Packaging Juicy Cakes had special packaging that increased the shelf life to 90 days, almost double that of their competitors. PRAYUTH'S CONFECTIONARIES The Early Years of Struggle An intense passion for cakes had always motivated Sinamoang and his wife, Bupha. However, Prayuth's Confectionaries did not make cakes that used fresh cream (18-25 per cent butterfat) or buttercream. Prayuth's Confectionaries' competitors in the ice cream cake market were brands such as Baskin Robbins8 and Cold Stone Creamery. The promoters had invested THB20 million, and the Bakery's capacity was not being used. Prayuth's Confectionaries had not been successful in this venture because of the exorbitant rates charged by the malls. Prayuth's Confectionaries expanded its product development after considering different trends in the industry at locations as far away as Bangkok, Phuket, and Chiangmai. Sinamoang claimed that this delay in registration was unsubstantiated because factual evidence—Prayuth's Confectionaries' tax invoices—showed that the cakes had been sold and billed as "Juicy Cakes" for more than three years. ONLINE SALES PORTAL Somsak Anong, a medium-scale, well-to-do distributor of Prayuth's Confectionaries in Ernakulam, had explored the possibilities of an online sales portal. Juicy Cakes was Prayuth's brand name for his specialized cakes, as the taste of Juicy Cakes differed from all other comparable standard cakes in the market. THE WAY FORWARD Prayuth's Confectionaries faced enormous challenges. However, as a brand name, Juicy Cakes was relatively unknown due to limited exposure among existing direct customers and distributors. Question: 1. Explain the short-term and long-term challenges that arise in regular business settings 2. Explain the interdependence among the 4Ps (Price, Product, Place, Promotion) and its relation with cost
In 2019, Prayuth Sinamoang, founder of Prayuth's Confectionaries (established in Sukhumvit, Bangkok in 2008), had created a strong cake product: Juicy Cakes.PRAYUTH'S PRAYUTH'S CONFECTIONARIES The Bakery industry in Thailand was highly fragmented, largely unorganized, and diverse. Prayuth's Confectionaries had piggybacked on the leading fast-moving consumer goods (FMCG) product distributors who promoted the cake to places of influence. Packaging Juicy Cakes had special packaging that increased the shelf life to 90 days, almost double that of their competitors. PRAYUTH'S CONFECTIONARIES The Early Years of Struggle An intense passion for cakes had always motivated Sinamoang and his wife, Bupha. However, Prayuth's Confectionaries did not make cakes that used fresh cream (18-25 per cent butterfat) or buttercream. Prayuth's Confectionaries' competitors in the ice cream cake market were brands such as Baskin Robbins8 and Cold Stone Creamery. The promoters had invested THB20 million, and the Bakery's capacity was not being used. Prayuth's Confectionaries had not been successful in this venture because of the exorbitant rates charged by the malls. Prayuth's Confectionaries expanded its product development after considering different trends in the industry at locations as far away as Bangkok, Phuket, and Chiangmai. Sinamoang claimed that this delay in registration was unsubstantiated because factual evidence—Prayuth's Confectionaries' tax invoices—showed that the cakes had been sold and billed as "Juicy Cakes" for more than three years. ONLINE SALES PORTAL Somsak Anong, a medium-scale, well-to-do distributor of Prayuth's Confectionaries in Ernakulam, had explored the possibilities of an online sales portal. Juicy Cakes was Prayuth's brand name for his specialized cakes, as the taste of Juicy Cakes differed from all other comparable standard cakes in the market. THE WAY FORWARD Prayuth's Confectionaries faced enormous challenges. However, as a brand name, Juicy Cakes was relatively unknown due to limited exposure among existing direct customers and distributors.
Question:
1. Explain the short-term and long-term challenges that arise in regular business settings
2. Explain the interdependence among the 4Ps (Price, Product, Place, Promotion) and its relation with cost
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