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Unformatted text preview: elsior and Superior may not be sufficiently similar to warrant this assumption. Promotional techniques that work for a leader with established name recognition for its brand of coffees may be ineffective for a company with no similar name recognition new to the brand coffee market. Accordingly, Excelsior might be better advised to employ some other strategy, such as a media advertising plan, to first attain broad name recognition. The argument also depends on the assumption that Excelsior can afford a promotional plan similar to Superior’s. However, free samples, price reductions, and discounts all reduce profits and may actually result in temporary losses. While a leading company with other profitable products in the same line can absorb a temporary loss, for a fledgling competitor this strategy might be very risky and may even result in business failure. Finally, the argument relies on the assumption that Superior’s promotional campaign for its newest coffee was successful. However, the memo provides no evidence that this was the case...
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This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.
- Spring '09