rish2jain wrote:
The following appeared in an Excelsior Company memorandum.
"The Excelsior Company plans to introduce its own brand of coffee. Since coffee is an expensive food item, and since there are already many established brands of coffee, the best way to gain customers for the Excelsior brand is to do what Superior, the leading coffee company, did when it introduced the newest brand in its line of coffees: conduct a temporary sales promotion that offers free samples, price reductions, and discount coupons for the new brand."
Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion.
My essay:
The Excelsior company wants to introduce its own brand of coffee since coffee is an expensive food item and might have good profit margins. However, as there are several established brands of coffee already, it needs to work out a way to gain a foothold in the market. For this purpose, the company plans to pursue the same marketing strategy that the leading coffee company Superior had used. However, I think there are several flaws in that line of reasoning. And hence this argument seems a little weak.
First, Superior is already an established brand, and the market leader. No data is given as to how long back it entered the coffee market. Without this information it is difficult to ascertain the utility of the marketing strategy for Excelsior. A brand might take decades to establish, and what worked a decade back, need not work today. For example, when Google was initially set up, it depended on word of mouth, rather than any communication media, for its marketing. As it was initially just an internal product for the University, this approach worked for them. However, it might not work for any company now. We see these days that most new web companies do advertise heavily when they initially launch a product for the masses.
Second, no information has been provided about the target market for the coffee or the pricing strategy. It might be that the coffee produced by Superior is one of the cheaper products in the market. And that they earn their profits from volume sales rather than having a niche market. Whereas, Excelsior might be aiming at the niche market of expensive and luxury coffee. If that were the case, then the same marketing strategies might not be relevant for Excelsior. Can Hyundai apply the same approach towards the market as does a luxury brand like Ferrari?
Without some of the relevant and contextual details, it is difficult to judge the efficacy of using the same marketing strategy that a competitor applied some unknown years back. If we were to get some more details in this regard, we could have judged the situation better.
Although, all the factors being the same, it might not be a bad idea to follow the same approach as that of a leading brand in the market. Sometimes there is nothing wrong with sticking to the tried and the tested. In the absence of any other better idea, Excelsior might not have much to lose if it pursues the same methods as did Superior. Its better to have some plan rather than no plan.
Conducting a temporary sales promotion that offers free samples, price reductions and discount coupons might not be such a bad idea. It could be a good ploy to get users to try out the product. And discounts and other monetary incentives are usually very effective in this regard. If the quality of the product is good enough and the pricing is appropriate, introducing enough customers to the product through such offers might give a significant push to consumer interest in the product. While, customer satisfaction might leverage word of mouth marketing.
Therefore, depending on the context the approach might or might not be a beneficial one.
Analyzes the issue 6
Supports ideas 5
Organizes a coherent idea 6
Language control 6
Total score 6
Well done! May I ask, did you write this within the 30-minute time limit? It's a lot.
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21 Apr 2013, 06:01
