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14 Nov 2018, 07:50
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The following appeared in a corporate memorandum of a beverage manufacturer:
“Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm.”
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
The above-mentioned argument appeared to be in a corporate memorandum of a beverage manufacturer states that - "Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm." is seem to be flawed for various reason. As the author didn't talk about the way they have to reduce the price of their energy drink, their competitor and what is the market share of energy drinks.
Firstly, as mentioned in the argument they are giving promotional discount their might be a certain reason for that such as manufacturer sales were not good enough and to attract consumer companies follows this kind of strategy or energy drink quality/ taste is not pleasant as provided by other manufacturers.
Secondly, the author could be including a survey from a particular region, not the whole territory and this could be flawed because in particular area people might like that energy drink but in other areas, it could be opposite. For example, suppose cola beverage sales in a specific region is good enough but in another area even after giving customer opt for other energy drinks even after giving a hefty discount to customers.
Thirdly, here the manufacturer didn't mention a number of energy drinks they have in market or market share of their drinks. For this reason, we can't come to conclusion about their improving profitability and perception in the eyes of customers. Eg. Any manufactures should understand where their potential customers are and which type of drinks is preferred by specific regions this will help in understanding the psychology of customer.
To sum up, manufacturer should consider all this above mentioned points such as is their drink found to tasty and consider the whole territory or work with separate plan for each area, if they have as well as they should also consider market share of their drinks and understand customers choices instead of giving promotional discounts which can help manufacturer in the long run.
Feed back will be appreciated.
“Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm.”
Discuss how well reasoned you find this argument. Point out flaws in the argument's logic and analyze the argument's underlying assumptions. In addition, evaluate how supporting evidence is used and what evidence might counter the argument's conclusion. You may also discuss what additional evidence could be used to strengthen the argument or what changes would make the argument more logically sound.
The above-mentioned argument appeared to be in a corporate memorandum of a beverage manufacturer states that - "Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company’s profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm." is seem to be flawed for various reason. As the author didn't talk about the way they have to reduce the price of their energy drink, their competitor and what is the market share of energy drinks.
Firstly, as mentioned in the argument they are giving promotional discount their might be a certain reason for that such as manufacturer sales were not good enough and to attract consumer companies follows this kind of strategy or energy drink quality/ taste is not pleasant as provided by other manufacturers.
Secondly, the author could be including a survey from a particular region, not the whole territory and this could be flawed because in particular area people might like that energy drink but in other areas, it could be opposite. For example, suppose cola beverage sales in a specific region is good enough but in another area even after giving customer opt for other energy drinks even after giving a hefty discount to customers.
Thirdly, here the manufacturer didn't mention a number of energy drinks they have in market or market share of their drinks. For this reason, we can't come to conclusion about their improving profitability and perception in the eyes of customers. Eg. Any manufactures should understand where their potential customers are and which type of drinks is preferred by specific regions this will help in understanding the psychology of customer.
To sum up, manufacturer should consider all this above mentioned points such as is their drink found to tasty and consider the whole territory or work with separate plan for each area, if they have as well as they should also consider market share of their drinks and understand customers choices instead of giving promotional discounts which can help manufacturer in the long run.
Feed back will be appreciated.
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