Marketing 101 Your initial posting will likely include various paragraphs. Any o
ID: 354838 • Letter: M
Question
Marketing 101
Your initial posting will likely include various paragraphs. Any outside sources that you use must be appropriately cited.
Your discussion should include:
Pick a (American) product that you use on a regular basis, and then identify two (2) brands within that product category: one brand that competes on price, and one brand that competes based on features and benefits. (For example, if you were to pick a product category such as shampoo, you might identify Suave as a brand that competes on price, and Paul Mitchell as a brand that competes based upon features and benefits.)
Give a brief (1 paragraph) description of each brand, including links to their web sites.
Conduct an actual price comparison on the two brands that you have identified in at least two different stores. Report where you compared the prices and what the pricing was in each location. Were there any sales or discounts available that affected the pricing for these products?
Since value is the ratio of perceived benefits to price, which product is the better “value” in your opinion? Why?
Explanation / Answer
Product Coffee: The morning coffee sets the tone and mood for the day. A good cup can keep you alert, energized and positive through the morning and a bad cup of coffee can make you glum and grouchy. According to the national coffee association 83% American brew their own coffee at home. The average American consumes 3.3 cups of coffee everyday i.e. 1200 cups year. This shows the importance of coffee beans, coffee, taste, costs associated with it. The coffee taste and flavoring depend on individual needs, for example, black coffee lovers would go for coffee without flavoring and other adding cream would opt for different flavoring according to their choice.
We will discuss two brands of coffee as follows:
Folgers: its naturally flavored coffee with no artificial flavors. It is made from premium 100% pure Arabica beans are roasted to perfection ground coffee. It topped the Folgers coffee of the year list. The black coffee drinkers would prefer their classic brand priced at 32 cents an ounce. Their French roast blend was ranked as number 1 on Huffington’s post list as the best in-store roast coffee because of its “pleasant flavors”. Their black silk blend praised for its great flavor with no afterburn taste.
Folgers also a had a range of gourmet blends serves mid segment priced at 66 cents an ounce and has an excellent taste.
Folgers strategy caters to different tastes and budgets. The product is sold as a special product with multiple enhanced features to target many different segments but all coffee lovers.
Eight ‘O’clock: It is a very popular brand, not only because it’s inexpensive. It is a loved coffee of America, it is sold by Tata global beverages now who took over the company in 2006.
There top of the league and popular coffee is the Colombian blend which has a smooth, chocolaty flavor with no aftertaste, it has now won the rainforest alliance seal of approval. It is the fifth largest coffee brand in The US. It is 100% Arabica coffee, states high quality at a great value. Their Brazilian breakfast is sourced 100% from Brazil.
They have kept the taste of their classic coffee from whole bean and ground varieties constant since 1859.
They have introduced a new range of infusions where coffee is blended with added ingredients namely alert and relax, hi-caffeine varieties.
Price at Wal-Mart
Price on Amazon
Folgers classic roast
$7.48 per 30.5 oz can
$ 6.99 per 30.5 oz can i.e.$ 0.23 for 1 ounce
Eight ‘O’ clock the original
$7.07 for 12 oz decaf
$ 11.49 per 24 oz per packet i.e. $0.48 per ounce.
I would prefer the Folgers classic roast not because of the price but also because of the blends and taste which have no afterburn taste. Though price wise also Folgers make economic sense to consume on a daily basis, but they also offer a wide variety of tastes and blends.
To sum it up it’s a combination of price and taste which impact the buying behavior. The price is not the only determinant.
Price at Wal-Mart
Price on Amazon
Folgers classic roast
$7.48 per 30.5 oz can
$ 6.99 per 30.5 oz can i.e.$ 0.23 for 1 ounce
Eight ‘O’ clock the original
$7.07 for 12 oz decaf
$ 11.49 per 24 oz per packet i.e. $0.48 per ounce.