Impressive Academic Essay About Marketing

The Earnings before Interest and Tax (EBIT) for No Move, Move-No Sales Increase and Move-Sale Increase scenarios were $103,389, $104,899, and $118,664 respectively. From these figures, it can be deduced that Pony Espresso earning was higher in Move scenarios than No Move scenario. The EBIT for Move-No Sales Increase scenario increased by 1.5% compared to No Move scenario. The increase is attributed to a decrease in the unit variable cost from $ 0.55 to $ 0.33. In total the variable cost reduced by 40% from $ 69,776 in No Move Scenario to $ 41,886 in Move–No Sales Increase scenario. However, the total fixed cost increased by 18% from $ 144,000 to $170,000. The EBIT for Move-Sales Increase scenario increased by 13% compared to Move-No Sales Increase scenario. The increase in earnings is attributed to an increase in the units sold that boosted sales. The total sale for Move-Sales increase scenario was 5% higher than Move-No Sales Increase scenario. Pony Espresso is poised to benefit in the two Move scenarios. Consequently, it is recommended that the company moves to a new location. Moving to a new location shall lead to a decrease in unit variable cost. The decrease in total variable cost is higher than the increase in fixed costs. As a result, the company total costs shall reduce in a new location compared to the costs incurred in the current location. However, in order to maintain high EBIT, the firm must increase its sales. The company should conduct an aggressive marketing of the brand and product. It should advertise the product in both digital and print media. This move is likely to increase current costs in the short term but boost sales in long term. Another marketing strategy is to give discounts on a specific number of units sold to promote bulk buying and increase sales. Moreover, the company should also consider lowering the average unit sales price to encourage buyers to purchase its product.