vix02_S1 - o ESSAY QUESTIONS: How does expanding the...

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Sheet1 Page 1 Vix Records: Coffee Bandwagon YOUR STRATEGY PREDICTION: This is the perfect opportunity to expand the channel into new types of distribution while maintaining existing retail partnership s The pricing of the product is key to the success of this initiative. If the cost of the co-branded music is lower than retail prices i t w Additional distribution channels will position the company to increase revenue especially since this venture demands little up-f r o It is crucial to balance both the quest for new consumers and the longstanding retail relationships because both are essential f o A strong and concerted effort to strengthen retailers with promotions and pricing incentives will result in an increase in sales a c This kind of opportunity could have lasting effects on the way music products are marketed and sold and therefore merits a m
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Unformatted text preview: o ESSAY QUESTIONS: How does expanding the channel impact the decision? Expanding the channels could get us a whole new category of customers which would significantly impact our sales. Why is the key component pricing? The key component is pricing because the more money you save the more money you make. To increase revenue is the goal because: There is little investment cost so if you is profitable there would be close to 100% profit Why are retailers and consumers the key players? We need longstanding relationships with the coffee shop so they will keep playing out artists music as well as needed the con s How does the most likely outcome impact strategy? undefined Why is moderate the appropriate scale? Because this isn't our main source of income...
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This note was uploaded on 06/21/2010 for the course MKT 211 taught by Professor K.barbour-conerty during the Spring '09 term at Parkland.

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