Factors Affecting Demand, CPFR and CRM Practices for Mount Franklin Water Company

Mount Franklin Water Company 1
Supply Chain Management
Mount Franklin Water Company
Student Name
Institution

Mount Franklin Water Company 2
Demand Management
What factors do you think may affect the demand for the products that the company
sells? (Hint: random variations, trends, seasonal)
There are several factors that may affect the demand of the products sold by Mount Franklin
Water Company. These include price, competition, consumer tastes and preferences, product
branding and advertising, and consumer income. Other than heightened advertising and
branding, on which Coca-Cola Amatil has spent a chunk of money on, demand for Mount
Franklin products is mainly driven by consumer tastes and preferences. Recent years have
seen a shift towards health consciousness, where consumers are driven by a desire to make
healthy choices (Chung, 2017). In particular, sugar present in juices and soft drinks, which is
linked to a myriad of health issues, has helped increase demand for products perceived to be
healthier (Yao, 2011). Since the need for hydration remains paramount, consumers thus tend
to opt for bottled water. Additionally, consumers have been shown to favour bottled water
over tap water, regardless of the fact that the latter is free and readily available. However,
there are still some areas plagued by poor quality of tap water, fuelling a dependence on
bottled water (Chung, 2017).
Mount Franklin has invested hugely in its brand, with a lot going into its advertising
campaigns. The company’s enlisting of a former Miss Universe as its brand ambassador has
helped in fuelling consumer interest in its products (Chung, 2017). Its parent company Coca-
Cola Amatil seemingly created the Mount Franklin brand as an alternative to its sugary
beverages. It could also be because of the need to tap into an emerging market, regardless, it
has continued to invest heavily in bettering the products in the Mount Franklin range. This
implies that the company projects a solid increase in demand in future as opposed to one that
is merely seasonal.

Mount Franklin Water Company 3
Competition is another factor that has affected demand for mount franklin products. Despite
being the most popular brand of carbonated water in Australia, the company’s products have
to contend with competition from various sources. These include rival bottled water
companies such as the Japanese owned Asahi, still water industries, and advocates of
consumption of tap water such as the Sydney Water Corporation (Chung, 2017). Regarding
the effect of price on demand, Mount Franklin products are priced higher than most of its
competitors, thus deterring consumers from purchasing them. More consumers are opting for
store-owned brands which are cheaper (Evans, 2017). Regardless, a continued increase in
consumer incomes has helped increased demand for the company’s products by influencing
consumer tastes and preferences.
Could the company be benefitted using CPFR? How?
Mount Franklin Water Company would most likely benefit from using CPFR. The main
issues they are grappling with include a disconnection between them and retailers,
competitive prices, decreased demand for their products and failure to satisfy their customers
optimally. With CPFR they would be able to increase the accuracy of forecasts on consumer
demand, reduce the prices of their products and improve sales. CPFR would also be
beneficial in reinforcing the relationship between the company and retailers. Retailers will
benefit from better prices and better management of their inventory (Software, 2019).
The main goal of CPFR is to improve supply chain, and as such involves a variety of
stakeholders. In this case, the stakeholders include Mount Franklin Water Company, retailers
such as supermarkets, and customers. The only way for CPFR to be effective is to ensure all
those involved are open to its adoption. The steps involved in CPFR are analysis, strategy and
planning, demand and supply management, and implementation (Software, 2019).
Collaboration here involves transparent sharing of information among all stakeholders. This
implies that CPFR relies heavily on the exchange of data. CPFR would be especially

Mount Franklin Water Company 4
beneficial to Mount Franklin because its products are not seasonal, and are highly promoted.
There is evidence to support an increased shift towards consumption of bottled water in
coming years.
It is easy for mount franklin to be committed to the implementation of CPFR, largely due to
the vast resources available at its disposal. So far, the bulk of money the company spends is
in production and advertising. The fact that its products are priced highly may impact
negatively on retailers who have to stock non-moving products. This could be managed
through forecasting, which will provide data on consumer trends regarding demand.
Information from forecasting will guide the company on how much to produce, and also the
quantity to supply to a given retailer. Retailers will subsequently be assured of clearing their
inventories. Forecasting will also inform the company and retailers of consumer preferences,
which will also aid in improving product quality and delivery. Overall, all stakeholders in this
supply chain will benefit from CPFR.
What CRM practices would you suggest to the company?
The goal of CRM is to improve customer experience. In this case Mount Franklin is
grappling with issues such as competition and pricing, which are affecting its customers’
experience. CRM best practices such as geo-location services, effective content creation on
their websites, data analytics, and personalization would go a long way in improving
customer satisfaction for Mount Franklin products. With geolocation technology, Mount
Franklin could tailor its advertising campaigns to customers’ physical locations. The same
technology could be used to identify sales prospects within a given location and enhance
networking between the company and customers (Crmtrends.com, 2019). it is important to
note that consumer preferences may also vary with location thus the need for geolocation
technology.