Chapter 14: Product and Price - McGraw-Hill Introduction to Business

Artificially Flavored Trix Returns Following Consumer Complaints

October 6, 2017

Two years ago General Mills made an admirable announcement when the company pledged to remove all artificial flavors and colors from its cereal brands. The Minnesota-based business noticed that sales of sugary, processed foods had been falling for some time as more consumers turned towards organic and natural options. General Mills figured it could win over these healthy eaters by switching to simpler ingredients. The plan seemed to work at first as the reformulated recipes increased cereal sales by 6 Continue reading →

Branding, Sustainability, Trix, Marketing, Food, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

Tracking the Global Appeal of Video Games

October 5, 2017

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This past summer, more than 68,000 video game fans packed the Los Angeles Convention Center for the Electronic Entertainment Expo (known as E3). For years only industry insiders and media representatives were invited to preview the latest titles and technology at this annual occasion. But in 2017 E3’s organizers opened up the convention to the public in order to involve even more people in what many consider to be gaming’s top event.

That is unless you live in Brazil. Next Continue reading →

Product Distribution, Global, Movies, Video Games, Product Development, Entertainment, Brazil

Chapter 1: Taking Risks and Making Profits, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

Lack of Growth Convinces Lego to “Reset”

October 3, 2017

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The last decade has been a good one for the Danish company Lego. After surviving a brush with bankruptcy in 2004, the famous toymaker regrouped and pursued an aggressive sales strategy focused on creating popular product lines. The plan worked as brands like Lego Architecture and the Mindstorms series attracted thousands of fans both young and old. By 2010 profits had quadrupled from the same time two years before. The company has since released two hit movies while continuing to Continue reading →

Product Development, Innovation, Lego, Management, Toys

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price

[VIDEO] Why the iPhone Can’t Be Made in the US

September 29, 2017

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Last week Apple released the iPhone 8, the latest version of its iconic smartphone. The company’s flagship product has brought in billions upon billions of dollars over the years, prompting some to wonder why Apple doesn’t move iPhone production to the U.S. After all, it could definitely afford the increased labor costs that comes with doing business domestically. But as this video shows, looking after the bottom line is far from the only reason why Apple keeps its manufacturing operations Continue reading →

Product Development, China, Operations Management, Smartphones, Global, Mobile, Manufacturing, iPhone, Apple

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Big Rig Truck Companies Strive for Efficiency

September 26, 2017

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Every day thousands of semi trucks crisscross the country transporting goods from one from place to another. But although big rigs are a key component of the distribution process, these gas-guzzling vehicles have never been particularly efficient. The average tractor trailer gets less than 7 miles per gallon of gasoline, making it one of the least green vehicles on the road. All told, the nation’s approximately 1.7 million semi trucks burn through more than 26 billion gallons of diesel fuel Continue reading →

Supply chains, Transportation, Sustainability, Product Distribution, Trucking, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Adidas Claims Number Two Spot in Sneaker Sales

September 22, 2017

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In 2015 the future was looking bleak for Adidas. The Germany-based apparel company had experienced years of declining sales as they lost market share to Nike’s growing dominance. A new batch of competitors like Under Armour and Skechers took their toll as well, causing Adidas to lose its position as the world’s second most popular seller of sportswear and footwear.

But just as analysts began to write off Adidas as a dying brand, the company set off on a major Continue reading →

Branding, Nike, Footwear, Marketing, Adidas, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

Food Halls Provide Eaters with a Variety of Options

September 21, 2017

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In malls across the country, food courts act as hubs where shoppers can eat, drink, and take breaks from comparing price tags. Along with sharing a common purpose, these corrals of restaurants and drink stands often serve similar fare, too. After all, walk into any food court and you’re likely to find mainstay chains like Sbarro, Subway and Panda Express alongside a couple of local options.

This dependable if slightly boring structure served retail centers well for decades as shoppers Continue reading →

E-commerce, Food, Food Halls, Shopping Malls, Product Development, Retail, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

[VIDEO] Tulip Mania: The First Bubble

September 15, 2017

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In the 17th century citizens of the Netherlands enjoyed an historic era of art and prosperity known as the Dutch Golden Age. Wealthy merchants spent lavishly on all sorts of luxuries, including a new flower imported from Turkey called the tulip. Demand for tulips reached incredible heights until the bottom suddenly fell out of the market. This short video looks at what many economists consider to be the first market bubble to burst.

Questions:

How does the Dutch tulip craze Continue reading →

Product Development, Value, Economics, Product Distribution, Global, Market Bubble, Netherlands, Tulip Mania

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets

“Despacito” Potentially Loses Out on Millions Thanks to YouTube

September 14, 2017

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If you listened to top 40 radio at all this past summer, then it’s safe to say that you heard “Despacito,” the inescapable hit by Luis Fonsi and Daddy Yankee. This upbeat romantic ballad spent 16 straight weeks at the top of Billboard’s Hot 100 charts, a feat only matched by Mariah Carey more than 20 years earlier. Of course, today’s tech savvy consumers don’t have to wait for “Despacito” to come on the radio in order to hear it. Continue reading →

Pricing, Streaming, Music, Product Distribution, Spotify, YouTube, Royalties, Entertainment

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media

Poor Harvests Send Avocado Prices Soaring

September 12, 2017

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One hundred years ago hardly any Americans outside of California had ever seen an avocado, let alone ate one. Then during the 1920s a Los Angeles postal worker named Rudolph Hass planted an avocado seed in his backyard that eventually grew into a highly productive tree. His children raved about how their father’s flavorful fruit beat out any competitors at the local market, eventually convincing him to patent the Hass Avocado in 1935. Soon growers across the region began to Continue reading →

Supply chains, Economics, Product Distribution, Food, Agriculture, Avocados, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion