Chapter 4 – Solved Cases
63
Summary of Solved Case# 3
Four P’s, Five C’s, Microeconomics Concepts,
Advertising Concepts
Application of Four P’s: Product (packaging, product line
stretching – horizontal / vertical), Pricing (profit
maximization formula MR = MC, price discrimination), Place
(distributors, retailers), and Promotion (branding strategy,
advertising jingle / slogan)
Application of Five C’s: Company (Core competency, brand
equity), Cost (manufacturing capacity), Competition
(Toblerone), Channels (Trader Joe’s vis-à-vis upscale grocery
stores, European distribution channels), Customers (American
/ European, customers buying from Trader’s Joe vis-à-vis
upscale grocery stores)
Microeconomics Concepts: Horizontal Demand Curve,
Demand Elasticity, Price Sensitivity, Profit Maximization
formula MR = MC, Extracting consumer surplus through
price discrimination, etc.
Advertising Concepts: Logo, Ad agency, Advertising Jingle /
Slogan
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