This addresses price analysis based on channel & venue.
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As a growing number of producers pursue multichannel distribution, they could probably learn some lessons from the masters at the game- the big soda companies. Think of all the places in your community where you can purchase a Coke or a Pepsi. How is the soda promoted differently through each channel? How does the price change at each venue? How high would the price of a soda need to be before you would decide not to buy?
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Solution Summary
This solution examines the following price analysis scenario:
As a growing number of producers pursue multichannel distribution, they could probably learn some lessons from the masters at the game- the big soda companies. Think of all the places in your community where you can purchase a Coke or a Pepsi. How is the soda promoted differently through each channel? How does the price change at each venue? How high would the price of a soda need to be before you would decide not to buy?
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Basically, the product is promoted based on the location. If the channel included sports facilities like a baseball park or other such venues, the prices would be set at a maximum because there is a limited amount of choices in such places and consumer demand increases in such facilities due to the limited availability of other beverage products. For vending machine locations throughout the city, the prices cannot be set at a ...
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