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Clique Pens

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In an ultra-competitive market as this, a lesser-known brand of such as Clique will not be able to increase their price. According to Cespedes and Kindley, “Consumers tended to shun private-label and unknown brands of pens and pencils to buy familiar brand names, but had little specific brand loyalty. Pens and pencils were viewed as commodities, except at the high end." With a product that is viewed, as a commodity the consumer will be much more reluctant to spend more for a product they are less familiar with. The majorities of consumers do not see a perceived value in a pen or pencil and will not be as willing to spend the extra money. It would also be very difficult for Clique to pass discounts directly to the consumer as well. I do not believe an increase in MDF would help grow market shares. Provided by Cespedes and Kindley," Coupon redemption rates fore writing implements were about 1.3% lower than most other consumer products." Ferguson also notes about the retailer," that discounts, once give, seemed almost impossible to claw back. This meant that any new program (MDF) would have to be clearly "equal" or better in the retailers eyes to their pre Clique program to be adopted." Meaning without giving the retailer another break that would be very tough to get back you could not give the consumer a discount. Which both could happen but without raising the price of the items, would continue to drive Gross Profit Margins down.
Advertisement would help greatly in this war, more importantly point-of-sale displays. Cespedes and Kindley state,""Although 85% of consumers knew what type of writing implements they wanted when they entered the store, they still were heavily influenced by point-of-sale displays and merchandising.""As well as,"Empty pegs in the display were common if inventory was managed too tightly."" This as well as the statement above about

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