Marketing Management 1. The price of a product will typically depend upon two ma
ID: 469287 • Letter: M
Question
Marketing Management 1. The price of a product will typically depend upon two major factors: the cost of production and consumer demand for the product. Name a product or company that could easily raise its prices without upsetting its loyal customers, and briefly explain why you chose that product or company. 2. Briefly describe the negative consequences that can occur in the distribution channel when shipping frozen items. Provide a specific example to explain your answer. 3. A mission statement is a formal statement that describes the overall purpose of the organization and what it intends to achieve in terms of customers, products, and resources. For example: a mission statement for a car dealership could be: to provide quality vehicles, service, and parts at affordable prices. Write a mission statement for a breakfast/brunch restaurant that is only open between 6 AM to 2 PM.
Explanation / Answer
Part - 1:
The price of a product will typically depend upon two major factors: the cost of production and consumer demand for the product. Name a product or company that could easily raise its prices without upsetting its loyal customers, and briefly explain why you chose that product or company.
Answer: GSK Consumers can raise the price of their product "Sensodyne" toothpaste without upsetting its loyal customers. Reason:
1) Its a best available product in Sensitivity segment.
2) Although a medicated product, the price is less compared to other company's similar product.
3) The quality being offered with a gurantee to solve sensitivity issue will not hamper its sales.
I choose this product as I have worked in similar category but for other company. So, I have a good understanding on the sensitivity segment & market analysis.
Part 2:
2. Briefly describe the negative consequences that can occur in the distribution channel when shipping frozen items. Provide a specific example to explain your answer.
Negative consequences in distribution channel: Eg. Ice cream
1) The cold chain used to ship frozen items believe in "Last Mile" delivery to destination. The concept of cross docking may not be possible in such case. So, if a container of ice cream comes from far of place, then, it has to deliver the product to a ice aprlour directly or to a distribution center if it is a cold storage. So, there are limitations.
2) To ship frozen items, special vehicle are required. The availability can be a concern which will impact other goods also.. Eg. Ice cream comes in big container which has temperature controller.
3) Lot of Quality checks are to be done before loading & unloading. Thus, slack comes in the system & increases distribution time. Eg. In case of Ice cream, thorough check needs to be befor loading else the ice cream may melt on the way.
4) Lot of documentation & paper work has to be ensured for customs else it can delay shipment.
5) The cold chains are less flexible compared to normal distribution chain. The reason is lot of pre work has to be done for setting up chain. Eg. If ice cream has to be loaded, then, temperature controller needs to be started 3-4 hrs in advance else adequate temperature is not obtained for laoding.
Part - 3
A mission statement is a formal statement that describes the overall purpose of the organization and what it intends to achieve in terms of customers, products, and resources.
Mission statement:
" Providing the Best quality & superior experience at Lowest cost to have maximum repeat customers"