Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Punch Products (PP) is a regional producer of soft drinks and sells mainly in the states of Kansas, Oklahoma, and Texas. Three years ago, in 2009, it made the decision to diversify into the bottled water industry, whose market enjoys a good reputation in a health-conscious America and is especially popular in areas where the quality of municipally provided water is suspect. Firms cater to businesses and homes, obtaining income mainly from the delivery of bottled water and the rental of water coolers. The market PP entered has one highly successful firm, Clear Springs, which is family owned with yearly sales of about $6M. The next largest firm is Well Water and there are ten extremely small firms with one or two trucks, six of which have appeared in the last two years.
When the decision was made to produce bottled water, nearly all of PP's executives were extremely confident that the venture would be highly profitable. This optimism was based on (1) projections showing the bottled water market was growing; (2) cost estimates implying that PP could undersell its competitors by 10 percent; and (3) PP's ability to pick winners in the soft drink market. Unfortunately, there was a barrier to entry that few realized: firms were not buying a product so much as a service and the marketing strategies of mass advertising (newspaper, radio, TV, etc.) and price discounts simply did not work. Mass advertising was ineffective because consumers believed correctly that all bottled water was really the same thing. Therefore, it is hard for a firm to differentiate its product, unlike firms in the soft drink industry. Price discounts failed for two reasons. First, a firm's managers were not especially attracted by price discounts. More important, firms were not buying a product but a service-a visit and chat with the delivery person. All in all, it was hard to convince firms to switch bottled water firms. As one manager put it: "So we save a few bucks." But that means we won't see Dave every week. And-my goodness - Dave's like family! It wouldn't be right to switch."
Problem 1: Define the term motivation and describe Maslow's contribution to motivation. Problem 2: (a) Discuss the needs and requirements for Market segmentation? (b
Question: (a) Why are services generally more difficult to evaluate - both before and after consumption - as compared to most goods ? (b) Discuss how customer expectations
various approaches to test marketing
Question 1: (a) How does the marketing mix help to ensure that marketing effort is effective? (b) Explain in details the elements of marketing mix. Question 2: (i)
what is concepts of marketing?
How is marketing mutually created beneficial relationship? Mutually beneficial relationship of marketing: The customer is the focus onto whole marketing activities. But th
Positioning: Meaning and definitions: positioning is a platform for the brand. It facilitates the brand of to get the target consumer. Positioning is the act of fixing the lo
How should Shoppers? Stop develop its demand forecasts?
Cost Based Pricing : Under the cost based pricing, different methods used are :- Mark Up Pricing Absorption Cost Pricing Target Rate of Return Pricing Margin
Commercialization The eighth and last step in the new-product development procedure is commercialization. This step is introducing a fresh product into the market. The company
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd