O'Level  &

By changing the packaging, Jerome is making sure his soft drinks are presented as high quality and prestigious, this will make it possible for them to increase selling price, as it highers the brand´s image, while still selling 10,000 units or more. As added value is the selling price minus cost of production, increasing the price will increase the added value.


By using cheaper materials to manufactor the soft drinks´ packaging and production, the cost of production will decrease significantly as not much input will be spent in the making of the product. This increases added value as added value is inversly proportional to cost of production so as cost of production decreases, added value increases.