Problem 1: Some brands have competition from counterfeiters. In some countries I have visited, I encountered imitation Tag Heur and Rolex watches for sale at very low prices. These and other premium and luxury brands are often the target of counterfeiters. This is a very big business which includes other products such as DVDs, CDs, software, clothing, etc.
What can brands do to protect themselves against this unethical business practice?
Problem 2 Many supermarkets and pharmacies carry generic or store brand products. Generally, they imitate named brands and are able to compete in the market by selling at lower prices. These generic or store brands may be manufactured by less prominent companies, or manufactured on the same line as a named brand. During this current economic downturn, generic or store brands represent a value proposition to consumers.
While generic or store brands are prevalent in supermarkets and pharmacies, do you think there are opportunities for them to grow in other retail stores?
Problem 3. A loss leader is a pricing strategy used to attract customers into a retail store. This is done by selling a product at very low price in hopes that the customer will purchase other products resulting in an overall profit.
While the loss leader pricing strategy can be very successful, can you tell us if it can have a negative effect and actually cause the business to lose money?
Problem 4. At Chrysler, most of our margins are made on the sale of our larger vehicles, such as the minivans, sports utility vehicles, and trucks. Two years ago, when the price of fuel rose to over $4 a gallon, it resulted in a sharp decline in sales of our larger vehicles which not only crippled the U.S. auto industry but was a major contributing factor in our current economic downturn.
As more consumers are taking into account the total cost of ownership when making a vehicle purchase decision, this could pave the way for electric vehicles which will cost less to operate.
What would be your marketing strategy for electric vehicles?