II. Major Problem Kodak’s agreement with Pacific Healthcare is they will provide the x-ray film at a cheaper cost and provide x-ray equipment, maintenance and service for being the sole supplier for x- ray film. Mr. Rubble is re-evaluating on whether to keep Kodak’s contract for x-ray film or go with another company at a cheaper price with the same quality of film. Mr. Rubble needs to also consider the extra benefits that Kodak is offering versus other suppliers. III.
There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices. This is what some firms in the leisure industry will aim to do, for instance, Cinemas will hope to achieve the highest level of profits. Although most firms in the leisure industry aim to maximise profit, some firms have other main objectives, such as to maximise growth. Growth maximisation is where the firm’s main goal is to increase the size of the firm as much as possible.
Companies can create brand equity for their products by making them memorable, easily recognizable and superior in quality and reliability. Mass marketing campaigns can also help to create brand equity. If consumers are willing to pay more for a generic product than for a branded one, however, the brand is said to have negative brand equity. This might happen if a company had a major product recall or caused a widely publicized environmental disaster. Reference: (http://www.investopedia.com) 1) What brand elements would be most useful for differentiating the Sonic brand from competing brands?
John Doe Arundel Partners: The Sequel Project 1. Arundel Partners believe that buying movie sequel rights will have a positive NPV because they will make more money producing the sequels than it will cost them to purchase the rights to the sequels. Buying on a film-to-film basis would require a significant more time negotiating the deals for each film and would potentially cost more per film than buying several rights at once. In addition, on a film-by-film basis, the movie studios may demand a higher price based on the estimated performance of the film. 2.
UNIT 3 P1 ALDI Business Objective Aldi believes that customers want something of good quality from their money instead of misleading quality. Aldi’s business objectives are to provide their customers with high quality products which are the same but cheaper than other brands products also they make sure that these products are kept at a reasonable price so that they do not lose customers. Aldi can achieve their objective if their prices are kept at a minimum instead of being average or high. Aldi control their prices by buying a lot of quantities from a small range. By cutting costs and being effective they can gain profits back and meet their business objectives.
But if Rosewood moved towards corporate branding, the customer retention ratios across different properties would increase, thereby providing inclusive publicity to all other properties, by leveraging on the brand of one property. Individual Brand vs. Corporate Brand Individual Branding | Corporate Branding | Pro’s * In line with the ‘Sense of Plan’ Policy * Better area specific marketing * No additional publicity costs | Pro’s * Higher CLTV, resulting in higher revenue * Consistency in services across properties * High customer loyalty * Better retention rates across properties | Con’s * Inconsistent services across portfolios * Lower rate of overall customer retention | Con’s * Added marketing costs * Loss of the ‘Unique’ quotient * Resistance from some managers and customers | Impact of Adopting a Corporate Branding Strategy * The Net Present Value of the CLTV increases from $296 with individual branding to
In September 2012, Aldi has announced that they are increasing the price of milk again (Ford, 2012), this has also given Aldi an opportunity to improve its image of an ‘underclass-discounter’ in the UK and Switzerland. By providing higher quality of services through training and development of resources and increasing the prices of products, it does not deter customers from choosing Aldi over their competitors. Report states that consumer are happy and chose Aldi as their preferred choice for supermarket due to its lower cost as well as no compromise to quality (Anon., 2014). Another one of Aldi’s strategy is to start advertising campaigns to
Through R&D, production costs can be significantly reduced to offer competitive pricing and/or increase profitability. By providing newer, better and unique products, companies are able to differentiate and stay ahead of the competition. Companies that invest heavily in R&D are able to release commercial products more quickly and anticipate changing consumer demands more rapidly. They can better assess how long a product
In the Personal Stereo Industry, the interplay between the pioneering companies, Saehan and Pontis and the entry of Apple illustrate that first-mover advantages are in fact futile, while factors such as product innovation, distribution capacity and access to international markets are the true contributors in developing economic advantages. Similarly, thorough coverage of the VCR/DVD/Blu-Ray industry demonstrates that cheaper production costs and product suitability to consumers are the main factors that allowed JVC to attain economies of scale and thus competitive advantages. 2. Introduction Proponents of New Trade Theory (“NTT”) suggest that all competitive advantages are deeply rooted in first-mover advantages. This essay will look to evaluate this statement and present a contrasting view through the analysis of the personal stereo and video recorder industries.
Even though the Brita products are a bit more expensive, people are willing to pay at that price for greater tasted water. Since Clorox is so successful, they have a significantly large marketing and R&D budget and that is where Clorox’s advantage is against their competitors. Clorox can further use this advantage. For example, Clorox can increase their advertisement either on TV or radio to attract new customers and to gain brand recognition. Clorox can also put more efforts on designing new