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

Luxury Picnic Planners Try to Dodge Bad Weather

September 6, 2023

When indoor gatherings became restricted during the pandemic, people turned to outdoor events like picnics in order to socialize while staying safe. Spotting an opportunity, some event planners launched luxury picnic companies that have since turned into profitable enterprises. From romantic dinners to full-scale weddings, these outdoor dining startups charge as much as $300 per person for gourmet meals with elaborate decor and cozy seating. That is, as long as the weather cooperates.

For example, Rachel LeBar of Colorado Luxe Continue reading →

Food & Drink, Operations Management, Entrepreneurship, Product Development, Crisis management

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 14: Product and Price

Product Returns Drive a Multi-Billion Dollar Resale Industry

August 30, 2023

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America’s biggest retailers have often embraced product returns as a key aspect of their business, starting with J.C. Penney and his namesake company in the early 20th century. Allowing customers to return any product with no questions asked, other big companies like Walmart and Amazon would go on to follow his example in the years to come. “It’s a hallmark of successful American retail,” said Dale Rogers, business professor at Arizona State University. “If you make it easy to shop, Continue reading →

[VIDEO] Why Car Companies Still Use Expensive Clay Models

August 25, 2023

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For nearly a century, car companies all over the world have built life-size clay models of vehicles in order to make all sorts of design decisions. But don’t let the humble materials fool you: luxury brands like Bentley often spend more than $650,000 to make just one model. This video looks at the benefits of building these pricey prototypes during the development process and why virtual reality tools won’t entirely replace clay anytime soon.

Questions:

What are the advantages Continue reading →

Manufacturing, Automation, Virtual reality, Product Development, Marketing, Cars, Global, Transportation

Chapter 1: Taking Risks and Making Profits, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter B: Technology and New Media, Videos

Could Pro Pickleball Become Profitable?

August 23, 2023

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Stroll by the tennis courts in your local park on a sunny day and you’re bound to see plenty of people swinging racquets, but some of them won’t be playing tennis. They’re taking part in the nation’s fastest growing sport: pickleball, a paddle game where players hit a hollow plastic ball back and forth over a net. Unlike tennis, pickleball requires little prior skill or innate athletic ability to enjoy, allowing it to amass an enormous following in a short Continue reading →

Product Development, Sports, Promotions, Marketing, Entertainment, Entrepreneurship, Pickleball

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

[VIDEO] Inside American Trucking’s Largest Bankruptcy

August 18, 2023

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The trucking company Yellow filed for bankruptcy in July after struggling for years with mounting debts and slim profit margins. The video below looks at how this low-cost carrier butted heads with unions while also failing to integrate acquisitions into its existing business, leading to the collapse of this century-old company.

Questions:

What are some factors that led Yellow to declare bankruptcy last month?
Why is it difficult for low-cost carriers like Yellow to operate in the competitive trucking industry?

Unions, Labor Relations, Product Development, Transportation, Product Distribution, Bankruptcy, Operations Management

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 14: Product and Price, Chapter 15: Distribution, Bonus Chapter A: Business Law, Videos

[VIDEO] How McDonald’s Crafts Its Country-Exclusive Menus

August 11, 2023

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More than 60 percent of McDonald’s sales come from outside the U.S., making foreign markets just as important to Mickey D’s bottom line as its domestic operations. This video looks at how the fast food giant develops items for its global customers, who often enjoy flavors that can’t be found under the Golden Arches anywhere else in the world.

Questions:

Why does McDonald’s develop menu items for specific global markets?
How does “transplanting flavors” from one market to another Continue reading →

Product Development, Promotions, Marketing, Fast food, Global, McDonald’s, Product Distribution, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Videos

Campbell Soup Spends $2.7 Billion on Pasta Sauce

August 9, 2023

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When Charles Rao first opened a New York City tavern in 1896, there’s no way he could have known his small business would eventually grow into a multi-billion dollar brand. After his family converted the bar into an Italian restaurant, however, Rao’s fame steadily grew throughout the 20th century. In fact, the eatery got so busy during the 1970s that longtime regulars were awarded “table rights” that turned into treasured family heirlooms. For everybody else, though, it became nearly impossible Continue reading →

Global, Product Distribution, Entrepreneurship, Food & Drink, Supply & Demand, Campbell Soup, Product Development, Marketing, Branding

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion

MrBeast Sues Food Delivery Partner for “Low-Quality” Products

August 4, 2023

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The YouTube star Jimmy Donaldson, better known as MrBeast, is the video-sharing platform’s most popular creator, boasting more than 172 million subscribers and counting. Donaldson has parlayed his massive success on YouTube into numerous other businesses, including food brands like the snack line Feastables and MrBeast Burger. He co-founded the latter in 2020 after partnering with Virtual Dining Concepts, a company that specializes in serving food through “ghost kitchens.” These ventures take up residence in the kitchens of established restaurants Continue reading →

[VIDEO] Why Primark Is Thriving As Other Retailers Struggle

August 2, 2023

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Experts estimate that as many as 80,000 American retail stores will close over the next five years as companies like Forever 21, JCPenney, and Neiman Marcus struggle to stay afloat. That’s not the case for the British retailer Primark, however, which has 18 locations in the U.S. with plans for a lot more to come. This video looks at how the company became a multibillion dollar brand in Europe by sticking to brick-and-mortar stores stocked with high quality items at Continue reading →

“Barbenheimer” Bonanza Boosts the Economy

July 28, 2023

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Last weekend, the highly anticipated summer movie Barbie opened in theaters to rave reviews and huge ticket sales, earning $162 million in just a few days. Of course, Barbie wasn’t the only film to make a splash at the box office: the 3-hour long drama Oppenheimer also enjoyed a big weekend with domestic receipts totaling $82.5 million. The success of these two films follows months of viral marketing that made light of the stark differences between sunny and bright Barbie Continue reading →

Entertainment, Marketing, Advertising, Social Media, Movies, Unions, Hollywood, Word of Mouth, Strikes, Viral marketing

Chapter 1: Taking Risks and Making Profits, Chapter 12: Labor Management and Unions, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media