In groups of three to five students, discuss the examples below and decide which
ID: 370140 • Letter: I
Question
In groups of three to five students, discuss the examples below and decide which variable received the most emphasis. A. Product B. Distribution C. Promotion D. Price 1. Starbucks Coffee began selling bagged premium specialty coffee through an agreement with Kraft Foods to gain access to more than 30,000 supermarkets. 2. Skype is a software application that allows consumers to make telephone calls over the web. Calls to Skype subscribers are free, while calls to land line and mobile phones cost around cents per minute. 3. Amid great anticipation, Apple released its iPad, selling more than 3 million within three months. The slim tablet computer is a major step forward in reading e-books, watching movies, and playing games. 4. After decades on the market, WD-40 is in about 80 percent of U.S. households-more than any other branded product. Although WD-40 is moted as a product that can stop squeaks, protect metal, loosen rusted parts, and free sticky mechanisms, the WD-40 Company has received letters from customers who have sprayed the product on bait to attract fish, on pets to cure mange, and even on people to cure arthritis. Despite more than 200 proposals to expand the WD-40 product line and ideas to change the packaging and labeling, the company stands firmly behind its one highly successful and respected original product.Explanation / Answer
1. Starbucks coffee entering into an agreement with Kraft foods to let consumers buy its products at 30000 supermarkets. In 1998, this mode of selling Starbucks coffee was seen as the one that will expand its model of distribution that was only being done through the coffee chain's outlets. As only premium speciality coffee will be sold, the product line remains premium. Starbucks is not expanding its product base to get into low-priced products. This served as a distribution model for Starbucks for more than a decade from 1998 to 2011. This also allowed for Starbucks' products to be promoted in 30000 Supermarkets.In this case, emphasis was on distribution more than anything else.
2. Pricing: Skype calls to landlines at 2 cents per minute with Skype to Skype being kept free. Pricing is extremely important in this case. As this does impact the telecom service providers. Revenue for them will come through internet service only in this case. The product features are of significance here as this is meant to get the customers to use this app rather than opting for a plan from telecom service providers.
3. All variables are of importance when it comes to this product's launch. Three million products sold in 3 months did require working on promotion and distribution. For Apple, low-end models are never the focus area. Therefore, pricing is always as is the product; belonging to premium category. The focus is on distribution and promotion for the product to manage the large number of sales in the first few months. Apple products are sold in large numbers over the first few months.
4. Sourcing, distribution, product, and, pricing are important in this case. Sourcing is important as Denny's serves more than a million customers a day. Pricing for lunch basket, value special, and, breakfast brings in consumers for products priced from $2 to $8. Profitability comes through a combination of working on sourcing, products, and, pricing.
5. The focus is on product. This is meant give to consumers what they may not get with other service providers.