Tag Archives: pricing

Good Things Come in Large Packages


It’s an oft-repeated phrase that “good things come in small packages.” But sometimes, a large package can be just as much fun to open. A new campaign from Hyundai in the U.K. illustrates how easy the company wants to make it for consumers to buy its cars, right down to having it delivered to the driveway.

The campaign, called “Click to Buy,” was launched in January in the U.K. to promote how easy it can be to buy a new car. Instead of going to a car dealership and getting confused by all the options, let alone all the price haggling with sales reps, Hyundai aims to make car buying as simple and easy to buy a car as the rest of your online shopping.

From the comfort of home, customers go to Hyundai’s Web site and get quotes, configure the car, apply for financing, and make a deposit. How does it work?

  1. Determine how much to spend.
  2. Configure cars and compare price quotes.
  3. Select the dealership.
  4. Apply for financing and pay a deposit.
  5. Pick up the car – or have it delivered (without the box unfortunately).

The campaign is geared to make car buying, simple, transparent, and free of price haggling. With six models of cars, various options can be configured and explored.

Now if only it really came in the large box!

Group Activities and Discussion Questions:

  1. Discuss the role of packaging in marketing.
  2. Poll the class about their car buying experiences. What do students like? Dislike?
  3. Show the advertisement video: https://youtu.be/XM0MIrATFXw
  4. Show Hyundai’s U.K. Web site: http://clicktobuy.hyundai.co.uk/
  5. Divide students into teams. Have each team select a car manufacturer and model. What is the process for buying a car, and obtaining pricing, from the different manufacturers?
  6. Debrief the exercise by having students develop a process for other car manufacturers.

Source:  Ad Age Daily

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Cash? How Old-Fashioned!


Retailers, as well as consumers, seem to be quickly moving to a cash-free form of commerce. By this we mean that instead of paying in bills and coins, more consumers are easily paying for purchases with credit cards, debit cards, or via an app. There are a lot of benefits for businesses to go cash-free. In fact, some retailers are phasing out the use of cash entirely in favor of cards.

One such business is Sweetgreen – a restaurant chain with 48 locations across the U.S. Several of its locations stopped accepting cash in January, but according to the company’s owners, barely any customers even noticed. The company had recognized that cash purchases had declined to less than 10% of total purchases and took action to eliminate the cash, and speed up the ordering and service process.

This is happening not just at U.S. retailers and restaurants, but also in other countries. In Sweden, only 2% of the country’s economy is represented by bills and coins. And, this year, compared to the average of 75% cash payments in the rest of the world, only 20% of all consumer payments in Sweden have been made by cash. Even the Abba Museum (which launched the 1970s hit song “Money, Money, Money” no longer accepts cash.

What’s in your wallet?

Group Activities and Discussion Questions:
1. Poll students: who uses cash, cards, apps, and in what amounts? Where are they likely to use each form?
2. What are the concerns and issues with no longer using cash?
3. Check out Sweetgreen’s Web site: http://www.sweetgreen.com/
4. Why does cashless work for this company?
5. What are the advantages and disadvantages with no longer using cash?
6. What are actions that retailers should take in regards to going cashless?
7. Divide students into teams. Have each team select a business and then develop a marketing plan to feature the cash-free transaction as a positive message.

Source: New York Times

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Sale on Aisle 2!


Grocery stores and supermarkets exist to help feed us, and we all know that the more we eat, the more money the supermarket makes. But these stores don’t influence what we eat, do they? In reality, yes, supermarket shelves influence consumer behavior. Here’s one example: kids’ cereals are placed on lower shelves. Why? Because that’s the eye-level of children.

Traditionally, the outside aisles of the grocery store is considered prime real estate and is usually the location of fresh produce, dairy, and meat products. Now, cake and candy products want to be there, too. Stores also shift bags of candy and chocolate to the front-of-store displays in order to tempt shoppers. And, don’t forget about the buy-one-get-one-free bins that are often found in high-traffic areas.

Stand-alone displays are also big at driving sales volume. These displays are usually funded by suppliers and are very effective at increasing purchases. The estimate for getting a new frozen item into a national chain is roughly $100,000 for a slotting fee.

Think you’re too smart to be fooled by these tactics? Look in your cart at the end of the shopping trip and see what jumped in there!

Group Activities and Discussion Questions:

  1. Discuss the importance of a grocery store layout.
  2. There are several videos that help to illustrate store layout: https://youtu.be/g3IwOgA3Ngw and


  1. If you have time for a field trip (or make it an assignment), have students go to local supermarkets and map out the aisles and products.
  2. Compare layouts from different stores.
  3. What are the challenges faced by new products entering supermarkets? How can these be addressed?

Source:  Associated Press

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