Quaker Oats: Branding Challenges: Quaker Oats

Great Essays
Register to read the introduction… Unfortunately, some companies have mismanaged their greatest asset—their brands. This is what befell the popular Snapple brand almost as soon as Quaker Oats bought the beverage marketer for $1.7 billion in 1994. Snapple had become a hit through powerful grassroots marketing and distribution through small outlets and convenience stores. Analysts said that because Quaker did not understand the brand’s appeal, it made the mistake of changing the ads and the distribution. Snapple lost so much money and market share that in 1997, Quaker finally sold the company for $300 million to Triarc, which has since revived the floundering brand.8

Branding Challenges
Branding poses several challenges to the marketer (see Figure 4-3). The first is whether or not to brand, the second is how to handle brand sponsorship, the third is choosing a brand name, the fourth is deciding on brand strategy, and the fifth is whether to reposition a brand later on.

To Brand or Not to Brand?
The first decision is whether the company should develop a brand name for its product. Branding is such a strong force today that hardly anything goes unbranded,

189
…show more content…
7. Maintain price and reduce perceived quality. Cut marketing expense to combat rising.

Smaller market share.
Maintained margin. Reduced long-term profitability.

8. Introduce an economy model. Give the market what it wants. Some cannibalization but higher total volume.

Another factor leading to price increases is overdemand. When a company cannot supply all of its customers, it can use one of the following pricing techniques:


With delayed quotation pricing, the company does not set a final price until the product is finished or delivered. This is prevalent in industries with long production lead times.



With escalator clauses, the company requires the customer to pay today’s price and all or part of any inflation increase that occurs before delivery, based on some specified price index. Such clauses are found in many contracts involving industrial projects of long duration.



With unbundling, the company maintains its price but removes or prices separately one or more elements that were part of the former offer, such as free delivery or installation. ➤

With reduction of discounts, the company no longer offers its normal cash and
quantity

Related Documents

  • Improved Essays

    Customers buy more at reduced prices while suppliers supply more at high prices. Market forces regulate the prices until a market equilibrium is reached where quantity demanded is equal to the quantity supplied. Below the equilibrium price, there is a shortage as the demand is more than the supply and suppliers have to increase their prices towards the equilibrium point. Markup pricing The article indicates that costs and profit margins should be factored in determining price of a product. The pricing tactic in question is known as a markup pricing.…

    • 735 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    When the prices of the products are increased then the market price is also increased. This happens because the consumers start to bid up the price of the product and will continue doing so until the shortage disappears. As prices increase then shortage shrinks. Surplus occurs when the quantity supplied exceeds the quantity demanded. In other words, surplus happens when there is an excess of product for a high price that no one is buying.…

    • 714 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    There are many reasons as to why both the short run and long run costs are U-shaped within a business. Short run costs refers to the cost a company will experience in a period of time in which costs are variable, e.g. when a company is releasing a new product. However long run costs refer to those over longer period of time, typically, over the entire product lifecycle. In this essay I will address some of these reasons and explain how they differ from one another in a corporate environment.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Price fluctuation: discounts and promotion prices in forward buying may cause distortion. Rationing and shortage gaming: suppliers usually resort to rationing, which in turn provides incentives to buyers to inflate orders. Further, supply chain lacks coordination if each stage optimizes only its local objectives. Accordign to Rao (2015), “Bullwhip effect reduces the profit of a supply chain by making it more expensive to provide a given level of product availability”. It can be effect by increasing costs for the supply chain by indicators listed bellow, which will be end with…

    • 1072 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Price Control

    • 1922 Words
    • 8 Pages

    Their cost will increase when it floor price increase, so if the firms don’t want to increase a lot their cost, they may reduce some of the labor. In this situation, it leads to another problem, the problem of occupation. The unemployment increased. The government wants to help them to increase the floor price of salary, but it also may make them lose their job. As this measure active in many different countries, Ruixiang, Fu who is…

    • 1922 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Daffodils Case Study

    • 1260 Words
    • 6 Pages

    The unemployment rate might indicate how much per cent of the population can afford the product. Last the labor cost, which of course matter a lot, as there are a lot of wage differs from country to country. Microeconomic factors cover market size, distribution chain, demand, suppliers and competitors. Daffodils Games and Publishing needs to consider what market size they can serve, so that they do not run out of any kind of resources. Therefore also if there is a demand in the market and how huge the demand for the games is.…

    • 1260 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Pricing Strategy Analysis

    • 1777 Words
    • 7 Pages

    PRICING STRATEGIES Pricing products or services one of most challenging processes we take on Price denotes what a seller requires in exchange for transferring ownership or use of product or service Total sales revenues dependent on two factors: volume and price Even small variations can radically alter revenues Team Assessment: Pricing: How Low Can You Really Go? 1. Are price cuts the only way to go during tough times? 2. How can you determine if customers really want price cuts?…

    • 1777 Words
    • 7 Pages
    Great Essays
  • Great Essays

    These include the cost of storage facility and the cost obsolesces when product become outdated and have to be sold at discount rates or even scrapped. Finding a solution to these inventory related problem can lead to significant reduction in the requirement to hold stock. These approaches recognize the importance of time within the inventory decision –making process. The aim of lead time reduction is to reduce the amount of unnecessary time within the order to delivery process and thus reduce the need to hold so many inventories as cover for this time delay. This can be achieved in a number different ways…

    • 1470 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    For example, raising the minimum wage can increase unemployment. This is one of the reasons why wages were not increased during the Great Depression. If the minimum wage increased, then the unemployment rate would skyrocket because the businesses already had a hard time paying their workers. Not to mention that the unemployment rate was already high enough at 14.6%. Wages could not be decreased because those who had a job, were having a tough time affording goods and services.…

    • 1320 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    For the case of Barney and Co, the decrease in sales can be salvaged through decreasing the production cost. Decreasing production cost can be achieved through cutting down on the projected sales through minimizing the inflow of raw materials. Reduction in inflow is geared toward ensuring that the expenses related to the purchase of raw materials and transportation costs of raw material to the company are reduced. Additionally, the operation expenses which are stipulated in operation budget should be…

    • 1043 Words
    • 5 Pages
    Improved Essays

Related Topics