Full Answer Section

Manufacturer Brands vs. Private-Label Brands:

• Manufacturer Brands: Products owned and marketed directly by the manufacturer with their own brand name.
  • Example:Coca-Cola
• Private-Label Brands: Products manufactured by a third party but sold under the retailer’s brand name.
  • Example:Supermarket chains often have their own private-label brands for various products.

3. Co-branding:

• Two companies collaborate to create a new product or service using both brand names.
  • Example:KFC and Pepsi offering a co-branded meal deal.

4. Brand Licensing:

• A company allows another company to use its brand name, logo, or characters for a fee (royalty) on another product.
  • Example:Disney characters appearing on clothing or toys manufactured by other companies.

Health Club Misleading Claim and Service Failure

The health club’s claim “lose an inch a month off your waist” can create a communications gap in several ways:

• Individual Results May Vary:This claim doesn’t account for individual differences in metabolism, fitness level, and body composition. Losing an inch may not be achievable or realistic for everyone.
• Focus on Measurement vs. Overall Health:The focus on waist size alone doesn’t address overall health and fitness goals. Strength training and healthy eating are also crucial.
• Sustainability:Losing weight too quickly can be unhealthy and unsustainable. The club should emphasize long-term healthy habits.

To avoid service failure, the club should:

• Use Disclaimers:Add disclaimers like “individual results may vary” and emphasize the importance of a personalized approach.
• Focus on Holistic Health:Promote overall fitness and healthy habits, not just weight loss.
• Set Realistic Expectations:Provide scientific evidence for their program’s effectiveness and set realistic goals for weight loss.

Neutrogena Sunscreen B2B Pricing Tactics

As the product manager for Neutrogena’s sun protection line, here are some B2B pricing tactics I would use to promote the new sunscreen:

• Penetration Pricing:Offer an introductory discount to wholesalers and retailers to encourage initial adoption of the new product.
• Value Pricing:Highlight the unique features and benefits of the new sunscreen (e.g., superior protection, innovative ingredients) to justify a premium price.
• Bundled Pricing:Offer bundled discounts when retailers purchase the new sunscreen alongside existing Neutrogena sun protection products.
• Cost-Plus Pricing:Determine the production and marketing costs of the sunscreen and add a desired profit margin to set a competitive wholesale price.

Rationale:

• These tactics aim to achieve market penetration, establish the product’s value proposition, and incentivize retailers to stock and promote the new sunscreen.
• Penetration pricing helps gain initial market share, while value pricing positions the product as a premium offering. Bundled pricing encourages larger purchases and promotes the entire sun protection line. Cost-plus pricing ensures profitability while remaining competitive.

By using a combination of these tactics, Neutrogena can effectively promote its new sunscreen to B2B buyers and gain a strong foothold in the market.