1. Illustrate a suitable target market for Alicaf coffee. 2. Illustrate the differences between the concepts...

  

 

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1. Illustrate a suitable target market for Alicafè coffee. 2. Illustrate the differences between the concepts of needs, wants, and demand for Alicafè coffee. 3. Describe the THREE (3) product levels for Alicafè coffee by Power Root. 4. Power Root acquires the certifications such as Halal (JAKIM), certifications by Moody: Food GMP Certified, HACCP Certified, ISO 22000: 2005 Certified, ISO 9001: 2008 Certified and Melamine Analyzed report. a. From the consumer's point of view, explain ONE (1) impact of these certifications on Power Root's brand image. b. Elaborate ONE (1) of the Sustainable Development Goals that Power Root could pursue by acquiring the certifications. Your explanation should be linked to ONE (1) of the certifications. Article 1 Power Root prospects stay positive, say analysts Wednesday, 02 Nov 2022 Aticaté NGKAT ALL BAN GINSENG WHITE COE KOS PRACAMPUN bcafé Alicate Alicafé TONGKAT AU BAR C Promi Harpe TM18.99 KAR PETALING JAYA: Power Root Bhd's prospects are expected to stay positive given the sustained demand for its product range and margin expansion in a favourable operating environment, says CGS-CIMB Research. On the back of a strong recovery in export momentum in the quarters ahead, the research house projected Power Root to record strong year-on-year (y-o-y) sales growth in the second quarter of the financial year 2023 (2Q23). This will be driven by robust export sales, mainly to the Middle East and North Africa (Mena) region, it added. "Premised on its proactive marketing approach to strengthening its presence in Mena, we believe this helps Power Root to garner higher pricing power, evidenced by the spike in Mena sales in 1Q23, up 88% y-o-y, despite product price hikes during the period." CGS-CIMB Research said some of the other positive factors include potential restocking activities ahead of the FIFA World Cup 2022 in Qatar, from Nov 20 to Dec 22, and a favorable operating environment, given a weakening ringgit against the US dollar, which could enhance the attractiveness of its products export pricing. In addition, the research house said there is more room for the group's margin expansion on average selling price (ASP) hikes and efficiency gains, said CGS-CIMB Research. "We gather that Power Root's current product selling prices still lag behind its peers' even after gradual price increases in the first half of 2022 (1H22), albeit on a smaller quantum versus its peers, which have continued to raise prices over the past nine months," noted the research house. As such, CGS-CIMB Research believes its sales demand could still hold up even if it hikes prices closer to its peers. "We could see the impact of ASP hikes on its margins more significantly in 2H23. Given this, coupled with potentially higher economies of scale, an increase in production output of about 41.2% in annual capacity, and declining input costs, we see room for Power Root to expand its margins," it added. On the government's impending sugar tax on premixed beverages, CGS-CIMB Research expects minimal impact on Power Root's premix products given its proactive proprietary product reformulations. "While we estimate that premix beverages account for about 75% of Power Root's sales, we believe it can reformulate up to 95% of its premix products to below the taxable sugar limit by the deadline without affecting much of its sales demand. In our view, this is backed up by strong brand equity and solid research and development efforts to develop proprietary product formulations after intensive market testing," the research house pointed out. CGS-CIMB Research has reiterated an "add" call on the stock with a target price of RM2.40. It believes that Power Root is a strong recovery play in FY23 on sustained product demand and a favourable operating environment. CGS-CIMB Research also likes the group's attractive dividend yield of 5% forecast for FY23 to FY25, as well as its healthy net cash position of RM72.7mil (or 17 sen per share) as of 1Q23. Source: https://www.thestar.com.my/business/business-news/2022/11/02/power-root- prospectsstay-positive-say-analysts as of 19 Nov 2022 1. Illustrate a suitable target market for Alicafè coffee. 2. Illustrate the differences between the concepts of needs, wants, and demand for Alicafè coffee. 3. Describe the THREE (3) product levels for Alicafè coffee by Power Root. 4. Power Root acquires the certifications such as Halal (JAKIM), certifications by Moody: Food GMP Certified, HACCP Certified, ISO 22000: 2005 Certified, ISO 9001: 2008 Certified and Melamine Analyzed report. a. From the consumer's point of view, explain ONE (1) impact of these certifications on Power Root's brand image. b. Elaborate ONE (1) of the Sustainable Development Goals that Power Root could pursue by acquiring the certifications. Your explanation should be linked to ONE (1) of the certifications. Article 1 Power Root prospects stay positive, say analysts Wednesday, 02 Nov 2022 Aticaté NGKAT ALL BAN GINSENG WHITE COE KOS PRACAMPUN bcafé Alicate Alicafé TONGKAT AU BAR C Promi Harpe TM18.99 KAR PETALING JAYA: Power Root Bhd's prospects are expected to stay positive given the sustained demand for its product range and margin expansion in a favourable operating environment, says CGS-CIMB Research. On the back of a strong recovery in export momentum in the quarters ahead, the research house projected Power Root to record strong year-on-year (y-o-y) sales growth in the second quarter of the financial year 2023 (2Q23). This will be driven by robust export sales, mainly to the Middle East and North Africa (Mena) region, it added. "Premised on its proactive marketing approach to strengthening its presence in Mena, we believe this helps Power Root to garner higher pricing power, evidenced by the spike in Mena sales in 1Q23, up 88% y-o-y, despite product price hikes during the period." CGS-CIMB Research said some of the other positive factors include potential restocking activities ahead of the FIFA World Cup 2022 in Qatar, from Nov 20 to Dec 22, and a favorable operating environment, given a weakening ringgit against the US dollar, which could enhance the attractiveness of its products export pricing. In addition, the research house said there is more room for the group's margin expansion on average selling price (ASP) hikes and efficiency gains, said CGS-CIMB Research. "We gather that Power Root's current product selling prices still lag behind its peers' even after gradual price increases in the first half of 2022 (1H22), albeit on a smaller quantum versus its peers, which have continued to raise prices over the past nine months," noted the research house. As such, CGS-CIMB Research believes its sales demand could still hold up even if it hikes prices closer to its peers. "We could see the impact of ASP hikes on its margins more significantly in 2H23. Given this, coupled with potentially higher economies of scale, an increase in production output of about 41.2% in annual capacity, and declining input costs, we see room for Power Root to expand its margins," it added. On the government's impending sugar tax on premixed beverages, CGS-CIMB Research expects minimal impact on Power Root's premix products given its proactive proprietary product reformulations. "While we estimate that premix beverages account for about 75% of Power Root's sales, we believe it can reformulate up to 95% of its premix products to below the taxable sugar limit by the deadline without affecting much of its sales demand. In our view, this is backed up by strong brand equity and solid research and development efforts to develop proprietary product formulations after intensive market testing," the research house pointed out. CGS-CIMB Research has reiterated an "add" call on the stock with a target price of RM2.40. It believes that Power Root is a strong recovery play in FY23 on sustained product demand and a favourable operating environment. CGS-CIMB Research also likes the group's attractive dividend yield of 5% forecast for FY23 to FY25, as well as its healthy net cash position of RM72.7mil (or 17 sen per share) as of 1Q23. Source: https://www.thestar.com.my/business/business-news/2022/11/02/power-root- prospectsstay-positive-say-analysts as of 19 Nov 2022

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1 The suitable target market for Alicaf coffee could be urban professionals and millennials who appr... View the full answer