The following are the student's discussions/comments that are based on the Main Discussion 1:
Please make a comment on the following student comment/discussion. (100 words minimum)
A) I just received the following reply:
I disagree with that statement because American's have been condition to think if the price tag is higher than it automatically makes it a better product. Lowering the price in my opinion will not change consumer's minds of those who normally buys the product.They would think its a bargin since the price has been lowered.
The reply received (A) is based on the comment below (By the way you did this one for me ?)
Hello Mark,
If Aveeno lowers the price the customer perception will change as all of them imagine Aveeno brand as a herbal one. A high quality herbal brand will come at a price and the high price is a substitute for the attributes of the product. If the product price is decreased it will impact the customer buying behavior, as they will think that the quality has been compromised. As we know that the herbal products are without preservatives and has high processing costs, the decrease of price cannot be justified. The brand value will fall hence; this will allow the customers to switch brands to try other products, which will affect Aveeno's revenue streams.
Regards,
Liz
DISCUSSION 2
Please make a comment on the following student comment/discussion. (100 words minimum)
A) Liz,
I am confused with your input on my postings, lately. Are you quoting from someone then would you please include your reference or are they your own thoughts?
The ABOVE question (A) is based on the following answer you did for me, which you answered from the MAIN DISCUSSION this student did. Please see below. Maybe I placed in the wrong discussion.
This is the answer you provided, which was based on this student main discussion (below)
Hello Oyunerdene,
The expansion for new emerging markets will be a good proposition but many best practices of the industry need to be followed. The forecasting should be accurate and the enterprise should be integrated to make use of the local cheap resources, which are available. The central repository of product knowledge, movement and delivery should be updated as well as enterprise wide information systems should be applied. Various models should optimize the warehouse and the logistics charged and also Radio frequency detectors can do the tracking of orders. These strategies will help to establish base but in order to succeed they have to depend on local sourcing and employment, this can be done by establishing localized supply chains which will cater to the value chain.
Regards,
Liz
THIS IS THE STUDENT MAIN DISCUSSION
The capital has always been free to move where it could make the highest return (Fatehi, 2008, p. 31). Due to the saturated market in the United States, Campbell Soup is expanding abroad (Fatehi, 2008, p.355) and it has carefully assessed the "need to adapt its offering to local taste" (Bell & Shelman, 2011, p. 137). It offers soup with split pea and ham in Argentina, watercress and duck-gizzard in China and Crema de Chile Poblano in Mexico ( Fatehi, 2008, p.355).
The above is to say that your offering could be appreciated differently from region to region. What if I place a frozen yogurt and ice cream vending machine in the college and hospital lobbies? There are close to 16,421 hospitals and 7690 colleges in the United States.
Fatehi, K. (2008). Managing Internationally. Thousand Oaks, CA: Sage Publications
Shelman, M. L., & Bell, D. E. (November 2011). KFC's radical approach to China. Harvard Business Review, 137-142.
The majority of shoes that are sold in the 40 billion shoe market in the States are manufactured in China and are shipped here, but according to Alfred Lin, COO and CFO of Zappos, they do not have a desire or plan on keeping the call centers in the U.S. and having a warehouse in China where they could ship shoes directly to the customer in the U.S.
Proposition:
- keep improving the design of the software which Nsieh is on, and improve the SKUs, and the scanning process
- share a central software program with its 1,400 affiliates (shoe brands), so they can print SKU, attach and send it to Zappos Fulfillment center
- having a general SKU will reduce the manual labor and increase efficiencies to deal with 70,000-80,000 shoes at the warehouse. Now the effort is distributed accordingly and evenly between Zappos and its affiliates, Zappos can improve its organization in scanning and shelving. I heard that the Walmart has a very smart system.
- do not pay for overnight shipping on those 75% of the shoes that are shipped from its own warehouse
- pay overnight shipping for those 15% of the shoes which are shipped outside from the fulfillment center (including new style shoes) to stay in control of the process . New style shoe buyers are the frequent shoe shoppers and they want their shoes tomorrow.
- increase the inventory accuracy rate from 95% to 99%, no customers want to dedicate time to search for shoes for hours and receive a note that the shoes are not available.