Milk carton in economics

MILK CARTON in

ECONOMICS

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The Hong Kong Management AssociationJoint Diploma in Management StudiesThe Economic Environment (1162L1)

Group 2 - 1st, August, 2011 Team Members:-Ng, Ka Man Student No. 112014-Chan, Man Ha-……..

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O Why does milk needs to be stored in carton when soft drink needs to be stored in plastic can or aluminum can?

O Why do these kinds of packaging affect the efficiency of economics?

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Milk is normally packed in a square carton which could save the space of storage shelves.

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Soft drinks, indifferently, are packed into a cylindrical can or bottle normally. It is convenient for people to hold and drink directly.

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• People usually hold and drink soft drink directly.

• In supermarket, soft drinks are usually display on the low cost shelves. It doesn’t need other operating expense.

For soft drinks, to fit with the consumer habit is more important than to save storage space.

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• Milk have to be stored in refrigerator. The cost is high (operating expense, electricity fee). Therefore, the space in refrigerators is valuable.

People usually have milk with a glass or cup.

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Conclusion

The package of the products should get a well balance between using the lowest cost and satisfying the preference of the consumers.

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