Economics Assignment | Break Even Analysis Assignment
Added on 2020-06-04
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BREAK – EVEN ANALYSIS The point at which condition of no loss and no profit forthe company come into consideration is called as break-evenpoint (BEP). Formula to calculate the BEP is stated below:BEP in units = Fixed costs / Contribution margin per unit = £24 / £2.2 = 10.90 or 11 books Contribution margin per unit = sales price per book – variablecost per book = £3 – £0.8 = £2.2 BEP in amount = Sales price per unit * BEP in units= £3 * 11 books = £33On the basis of above calculation, it can be analysed thatwhen Tate Modern Museum will sell 11 books and generaterevenue of £33 then able to achieve break-even point. JUSTIFICATION OF CHOICE OF ARTThe idea of this creation wastaken from the 'Bable', a tower ofhundreds of analogue radios which ispresent in the Tate Modern Museum.Artist Clido Meireles prepared thistower in 2001 which is a large-scalesculptural installation that takes theform of a circle. The rationale behindselecting this art is its popularity amongthe visitors. It has been found thatbecause of its attractive presence, thetower is liked by all the persons whoCUSTOMER BUYING BEHAVIOUR Consumers influence for purchasing any kind of product or service on the basisof price, cost, easy availability, quality etc. In the present scenario, to assess behaviourof researchers in order to use books offered in Tate Modern Museum price anduniqueness will be considered at the majority level. Further, for enhancing buying ofcustomers “the book tower” will provide books at the lowest prices as compared torivals. MARKET RESEARCH In order to analyse purchasing behaviour of the researcher, survey will beconducted and then reviews taken from them about the books offered by Museum.Under this, questionnaire will be framed including various concepts like quality, price,availability etc. and distributed among users of the unique books. UNIQUE SELLING POINT The point which makes differentiate to the particular product or service fromthe competitors within market is known as unique selling point (USP). In the presentscenario, USP of “the book tower” will be uniqueness of the books along with at thelower costs. Promotion: Reader of the unique books can be of young or old people or both dueto which modern and traditional promotional strategies will be undertaken.Therefore, social media, digital, newspaper and television methods of marketingwill be used to promote “the book tower” product within country. Place: The selected product of Tate Modern Museum will be offered offline andonline both the ways. The reason is that, people who are interested in readingunique books but unable to visit physically, can get services properly and enhancerevenue of the Museum. TARGET MARKET Various books provided in “the book tower” will be highly supportive forconducting research and analysis in an appropriate manner. Therefore, targetmarket of the present product will be group of researcher and analyst. APPLICATION OF MARKETING TOOLSAfter developing a new product, it is very necessary to advertise it sothat maximum number of people can get to informed about this. Thisinformation will be made them to access the place which will increase therevenue. To promote a product's unique points, four ingredients can be used,these elements are known as "The four Ps".Product: It is that element for which the whole marketing operation is carriedout and hence, it is required to be effective. Presently, the product who isbeing marketed is "the book tower". This circular structure is having thefamous and important written publications from various countries. The partsfrom where the books belong are the South Asia, Europe, Middle-East places,etc. Besides this, the 'unique" factor in the services is the assistance ofcomputer system with translators to make the books understandable for thevisitors.Price: In “the book tower” different number of unique books will be offered toAIMS AND PURPOSE"The best way to predict the future is to create it". Product development is thecreation of commodities with new or antithetic characteristics that assists in offeringadditional benefits to the customers. However, development doesn't always mean"Alteration", it can be developed even with some "Modifications".The product that is developed is "the book tower". In this tower various uniquebooks from different countries will be kept. In addition to this, it is decided that it willhave some advanced feature. The technical innovation which will added in theinstallation of Book Tower will be a computer assisted system with all the details suchas author, publications, etc. Beside this, brief summary of the books, Journals, etc. willalso be fed in the system. Also, as different countries have their own languages so atranslator will be provided to the visitors to access the content. The primary purpose ofthis development is to enhance the revenue from visitors by creating an advanced andattractive product. Whereas, the secondary purpose is to amplify the knowledge ofbooks and to understand their significance.BUSINESS AND ENTERPRISE
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