Question

Cans plc is developing a new form of 'crinkly can' for soft drinks. The crinkly can has grooves in the side which match the size of the fingers of a hand. The company's research and development department employs 50 people full-time and accounts for 2 per cent of the company's costs. The design manager thinks that it may be important in future to develop special designs for particular commercial customers, even if this involves relatively small production runs and a higher price to the customer for each can. He said 'Our profit margins are not yet satisfactory. I would like to maintain our existing level of sales of the standard can at the standard price, but also take advantage of our design skills and sell additional cans of the new style cans in smaller batches but at a higher price.'

Answer 1

The company is considering developing special designs for particular commercial customers for their new 'crinkly can' product.

Step-by-step explanation:

The subject of this question is Business. The company, Cans plc, is considering developing special designs for particular commercial customers for their new 'crinkly can' product. This strategy would involve smaller production runs and a higher price for each can. The design manager believes that this approach would allow them to take advantage of their design skills and sell additional cans, while still maintaining their sales of the standard can at the standard price.