Question

out References Mailings RevieC View Help ACROBAT? Tell me what you want to do 21) Generally, companies follow one of two broad strategies offering a quality product at a low price or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas: a target customers b. products offered c product pricing d. location choice e. advertising content f. advertising media ational Area Low Price Strategy Differential Strategy Diff 3 Objective: 2 AACSB: Application of knowledge

Answer 1

Operational Area	Low Price Strategy	Differential Strategy
Target Customers		Differential strategy
Products Offered		Differential Strategy
Product Pricing	Low Price strategy
Location Choice		Differential Strategy
Advertising Content		Differential Strategy
Advertising Media	Low Price strategy

Target Customers

A differential strategy is used to select the target market. For example men and women in the age group of 18 to 25 is the target group selected for the small business food outlet.

Products offered

Food is prepared based on the taste and preference of the men and women. The business unit prepares different food product to attract and retain the customer in the business.

Product Pricing

Low price strategy is a mechanism used by many company in the competititive world. In each industry, there is a one segment that expects product with low price strategy. So offering food at low price is also strategy that has to be inculcated in the business.

Location choice

Differentiation strategy is used to select the location that facilitates the business unit to attract the customer.

Advertising Content

There are many advertisement that plays a crucial role for the success of a product. To stand in the minds of the customer, the advertisement content should be differentiated from all other food chains that have been advertised earlier.

Advertising Media

This is the period that people have changed from mass media to micro media. Advertisement through mobile and internet is an effective mechanism through which, we can give advertisement about the business unit