Page 30 - Case Lab Teaching Note

Bargaining power of customers

Tyrrells enjoys a healthy market position with a 35 percent return on

investment.

Competitor differentiation is in terms of variants and

communication.

Ability to substitute is high as brands are priced similarly and
distribution problems for one brand promote sales for the other.

Price Sensitivity is high. An increase in the price of Tyrrells may

promote a switch to Burt or Kettle for most buyers (except for
loyalists)