Economic Conclusion

The Colgate, Darlie, Ferrero and Hershey are the company that have fall in monopolistic competition market. It refers to market structure in which firm have many competitors but each one sells a slightly different product.

There are few characteristic are required to be a monopolistic competition firm. They share the same characteristic such as product differentiation, price maker, many seller and buyer and advertisement. First, product differentiation is the process to distinguish products or services. For example, the Colgate used few methods to differentiate their products from other such as design various name for every product line so that the customer can identify it clearly and likely. Second, price maker means the company or seller which can control over the price of products because they have large quantity demand from its customer. For example, the Colgate set higher price of the product compare to Darlie because Colgate has the skills to attract customer to increase quantity demand. Third, many seller and buyer is also an important characteristic of monopolistic competition. For example, Ferrero contains large number of seller and the Kinder Bueno is the one of the best-seller of the company but it also have to face many competitors in the meantime such as Hershey, Kit Kat and others. Last, the advertisement is the best way to attract more customers and introduce the new product. For example, the Colgate has done a lot of advertisement to attract customer and the result shown that Colgate has confidence to set higher price than Darlie because it has acquired large number of quantity demand of its product.

For recommendation, we suggested that Darlie should provide more interest and creative advertisement for their product to attract customers in order to compete with Colgate. Moreover, we also suggested Darlie should find researcher to do some effort in order to create more effectively products that can compare with competitor’s...