Secondly, the marketing director assumes that low prices are what attracted consumers to Bargain Brands cereal. It is possible that it was not price that attracted customers - rather the package, promotion or the fact that the other cereals were not as good as Bargain Brands cereal. The company may have some special advantage with its cereal that others do not have - and that it cannot duplicate in any other types of foods. Success in selling low-priced cereal does not indicate the chances for success with other low-priced foods. Indeed, there may be some industry-specific factors in cereal marketing that have allowed Bargain Brands to succeed in the short-term. Bargain Brands may have some special expertise with cereal that they cannot duplicate with other types of food products. The marketing director presents no direct evidence or market research to indicate that Bargain Brands can successfully expand its business into other food areas. Without such information, the marketing directors argument is unconvincing.
In summary, without detailed market research showing the true reason why Bargain Brands cereal has been successful, without knowing the likelihood of its continued success, and without showing how it can translate that success to other areas, the marketing directors argument is based on speculation and faulty logic. To strengthen his or her argument, market research should be conducted to determine how the marketplace is reacting to the competitions strategies in the cereal market, and whether there is a demand in any other particular areas for low-priced food products. Additionally, the marketing director must show that Bargain Brands has some type of competitive advantage that it can successfully apply to its strategies in the low-priced food product market.
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