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Essentials of Business Development 1_Week 1 Discussion

Essentials of Business

Q Use the Harvard Business Case, “Clique Pens: The Writing Implements Division of U.S. Homes” as the basis for answering the following questions: • Can Clique Pens implement a price increase? If not, can Clique Pens deploy funds that allow us to gain market share by providing discounts directly to the consumer, but still allow the retailer to make acceptable profit? • Does advertising do nothing to help in this war? • One could argue that their customers should perceive a higher value benefit from lower price, but will they really? • Can value differences be discerned with the crazy pricing out there—one competitor with a three-pack for $2.56 versus Clique Pen’s two-pack at $1.78?

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1. An increase in price can be implemented by Clique Pens. It was stated in the case study that the consumers are not aware of the cost of writing implements. However, concern of theirs is more towards price-off deals and discounts. The retailer can be permitted still to generate acceptable profit in case they continue joint ads in order for customers in more numbers to be brought while deals being offered in place of Clique Pens making payment for every ad of theirs alone (Cespedes & Kindley, 2018).