Marlboro Case Essay

723 Words3 Pages
Q1: Marlboro, a famous cigarette brand, dropped its prices 40-50% a pack in 1993. Was it the right move? Explain (Read case study on page 193 before answering this question). A1: As we can see during the recession, resources become even scarcer, which implied to the corporate of time for cultivation. As marketer’s decision of reducing on price, which we can consider it as investing on potential customers, to ensure their interest in one specific brand. In one period we consume, in the other time we save for investment. Not to mention, in the time of having high cost of living which leads to the shrinking of consumers’ purchase power, or we can also see the inflation on the price of goods. In this case, by repositioning a company’s brand meanwhile realigning with the perception of value in consumers’ mind is critical for a firm to sustain its brand image amount the publics. Even though this action has caused a short term profitability decline, but for firms’ long-term sustainability, it is vital to keep up with customers’ perceived value, and understanding the core idea of value-pricing strategy. Therefore it was a right move for Marlboro to drop its price on the products. Marlboro is a tobacco company which produces cigarettes. Smokers can grow significantly during a down time of economy, therefore as long as this Brand stays in the mind of smokers, the company could always make sells as long as it stays focusing on its brand management. During the period of hard time, the consumers definitely need a firm which can concern and appreciate the most out of their injected resource, since the shrinking in their purchasing power, we can obviously see the constraint from the already limited resources, any company which fail to implement efficiency with its business process would eventually lead it to the diminished business activities. Q2: What distribution
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