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Unformatted text preview: 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.” This company memorandum recommends that Excelsior conduct a temporary sales promotion for its new brand of coffee that includes offering free samples, price reductions, and discount coupons. This recommendation is based on the fact that Superior, the leading coffee company, used just such a promotion to introduce the newest brand in its line of coffees. This argument is unconvincing because it relies on three questionable assumptions. First of all, the argument rests on the assumption that a promotional strategy that works for one company will work for another. However, Exc...
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