Sombrero Case study Assignment Example | Topics and Well Written Essays - 500 words

Sombrero Case study - Assignment Example The total monthly fix expenditures for the entire business venture is six thousands seven hundred UAE Dirham (UAEDh 6,700). The total operating expense is ten thousands three hundred UAE Dirham (UAEDh 10,300). The entire expenditure is seventeen thousands UAE Dirham (UAEDh 17,000). Without any marketing budget mentioned, the only drawing power of the SOMBRERO venture is its price. Without any comparative data about any competition that is mentioned in the study, the only indication for the competitiveness of the SOMBRERO fruit drink price is its raw material cost versus price ratio which is about four hundred percentile (400%). However, including the other direct operation cost the cost to price percentile would be at fifty nine percentile (59%). The small revenue as compared to the cost would indicate that it is competitive. Fruit Drinks do not have any cultural sensitivity that is why no matter the race or even the origin of any potential customer its acceptability would always be high. The trend amongst young adults particularly those attending college is to live healthy. This would include drinking less carbonated drinks and reverting back to fruit drinks. This translates to a steady stream of customers from the University during school days which could increase the potential sales at that time. A steadier income that will be provided by mall visitors three hundred thousand potential customers is much more promising. Considering that the Mall is the only one of its kind within the area there will be no competition as far as Mall market share is concerned. The only issue now is the visibility of the SOMBRERO booth. It should be noted that the booth is located in the food court of the Mall this will provide a common area where solid foods will be served. Solid foods or main courses has a requisite of a liquid intake this would make the SOMBRERO booth’s location essential. There will always be a demand for food every day from