QUESTION released. Sony PlayStation 3 was originally sold


Product bundle pricing has the potential to
bring in a lot of additional revenue. Think of three different products that
rely on product bundle pricing and explain why the company has used these strategy.

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Xbox 360
sold with  Xbox 360 console, Final
Fantasy XIII, an Xbox 360 250GB hard drive, 2 Xbox 360 wireless
controllers, an Xbox 360 wired headset, an Ethernet cable, a standard
definition Xbox 360 composite A/V/ cable, and a Final Fantasy face plate
by Walmart. Walmart ensures that they receive some profit from selling
each of these items rather than allowing the customer to purchase the
extra controller or Final Fantasy XIII from another company at a later

Office 365 includes all office applications, the company used this
strategy in order to increase their revenue and prevent a drop if people
chose only to buy 3 of the applications.
was able to boost its sales and customer numbers with combo deals and at
the same time managed to attract value centric guests with more expensive
and higher quality options.




pricing is used many times when companies invent new products and first
introduce them to the market. Think of 3 “new” products that you believe are
employing a price skimming strategy. Back up your answers.

Apple product e.g Iphones. When Iphone 4s was introduced in the
market it had a high price and a few people could afford it, nowadays a
lot of people can buy it since the price has reduced due to the fact that
more Iphone models have been released.
Sony PlayStation 3 was originally sold for a higher price in
2006 but now the price has gradually decreased.

Though now the product life cycle is at a decline the DVD
Player in the 1900s was launched at a high price and a decade later the
prices had decreased to more than half



What is a franchise organization? Discuss
the different types of franchise organizations and give local examples of each
of the franchise examples.
maybe useful. Explain why the company has chosen these franchise arrangement.


A franchise organization is an organization
that already exists as a successful product or service and the franchiser makes
a contractual relationship with the franchisee to operate under the
franchiser’s trade name and guidance in return for an initial royalty fee.

There are 3 types of franchise organizations


format: franchisor sells the rights to the trademark and trade name as
well as the business processes and systems to the franchisee to develop
products and services for the customers. For example McDonalds fast food
restaurants, who has chosen to franchise because finance rapid growth

franchise: manufacturers have control over the retail stores that distribute
their products. In this contract, manufacturers allow store owners to use
their trade name and trademark. For example, Good Year Tires, the
franchisor in this case is less involved
franchises: franchisor is to manufacture the product in his factory under
a license as per the franchise contract. He also sells the products using
the franchisor’s trademark and company name.




Identify an international company that has
launched a new product recently. Identify the following: Nintendo switch

a) What is the target audience?

b) What are the communication objectives?

c) What kind of message has been designed?
(content/appeal, structure, format).

d) Which media is being used to reach the

e) Which method do you think has been used
to set the promotional budget?


Different demographics since
they have released other games in the past years. Young ages and loyal
customers who owned Nintendo games in past years. From their launch video it
seems they are mostly aiming for leisure-class millennials

To inform customers about the
new home console that you can pull out and take on the go and play in a variety
of different styles thus creating awareness . They also aimed to stimulate
wants  by communicating to customers that
we’ve got this steady rhythm of titles, both first party and third party,
coming throughout the rest of the year and beyond

The message designed has been
mostly about how the console can be used in both console and handheld mode, it
also has portability and convenience of a mobile device which you can play
wherever and with whomever you choose. As from their slogan “Switch and Play”

The first ad was released
during the Super Bowl in America. A trailer on YouTube was released and until
now it has over 30 million views. Besides the internet they also have different
adverts on television.




Conduct and illustrate a customer value
analysis for three local restaurants (or other businesses that you prefer to
analyze).Who are the strong and weak competitors? For the strong competitors,
what are their vulnerabilities?


In Tivoli Rome we
have 3  locale sandwich shops Pippo,
Poldo and Parenti la Vacca. Each famous for their sandwiches and each has a
large group of customers.


Pippo: Fan
favourite and highly recommeded by most Italians. They have the best customer
service and their product is high quality and origional.


Poldo: Mostly
makes sandwiches similar to Pippo so they are not origional but very convenient
to most students and workers near them


Parenti la Vacca:
they offer a more variety of food and not just sandwiches


The strong
competitors are Pippo and Poldo. Since the most favourite for all customers is
Pippo, they often go to Poldo when Pippo is closed.


vulnerabilities of the Strong competitors is that Pippo is only open from 10.30
pm to 2am from Wednesday to Monday although this does not stop customers stop
from going there everyday and waiting in line from 9pm.


Poldo on the
other hand does not have many choices when it comes to the menu it offers and
if one day Pippo decides to open also during the day, a few people will go to



Discuss the advantages of being a market
follower and factors to consider when pursuing this strategy, identify a
company that uses this strategy well.



high profits because there is no burden for innovation and you don’t spend
a lot on research
opportunity to learn from first to market firm’s mistakes.

the financial risk and chance for failure



to consider

1. Adapter: where followers adapt market
leaders approaches (Strategy, Product, Policy, Quality,…). Good followers may
become leaders if they can adapt, learn and improve what the adapted from
market leaders.


2. Imitation: Imitators make use of market
leaders’ brands equity and give a product which has the same characteristics as
that of the market leader.


3. Cloner: It is making the same product as
that of a market leader, but with very subtle difference.


4. Counterfeiter: The best example of
counterfeiting is selling the originals via piracy.


A company using this strategy well is
Google because Yahoo was the first to introduce a search engine.