The brand name of a company is dependent on the success of products launched by the company. However, there are product offing that a customer can quickly identify with owing to its success and advantages. The diet pill is a symbolization of the company’s success because it is common and the most sort after diet pill. Even though the company produces other products, the diet pill is synonymous with the company. Customers can easily recognize the brand name on other products due to the success of the diet pill. i.e., people associate the apple company with its iPhone despite the company producing other products (Cusumano and Gawer, 2002). The diet pill provides a way for the company to improve revenues and help the company assess its success in selling its products to assist in adopting the best sales strategy.
Keeping the product on the shelves is advantageous to the company because it will help improve revenues concerning the sales numbers. The product is available on the shelves of other pharmacies, and pulling it out of shelves can reduce corporation with other company's. As a flagship product and uniquely produced by the company, it can prove challenging for those dependent on the product for daily use. The product has many positive reviews from the major stakeholders in the industry, giving the company a positive image and trust among customers. Pulling the product from shelves can be devastating for the company because it will elicit several questions from consumers and competitors, fueling negative publicity. The negative publicity will affect not only the company’s image but also the uptake of other products offered by the company.
First Initial M – Z
Customers are essential to business, and without a good customer base, a company is less likely to succeed. The diet pill has received negative reviews from consumers owing to some of the long term effects of using the diet pill. It is wise to pull the product from shelves because it will hurt its reputation in the long run and reduce its customer share in the healthcare industry. The trust in the safety of other products the company produces will reduce and affect the whole company resulting in losses from lawsuits and other unnecessary payments. Mitigating Such risk at the earliest opportunity is by pulling the product from shelves. i.e., such as Zantac, a product from Walgreens being pulled off the shelves due to its harmful effects on consumers (Liedtka, 2011). A product’s success directly translates to improved profits with the number of sales to consumers.
The product has minimal penetration in the market since its introduction. Keeping the diet pill on the shelves does not make business sense for the company. After all, it only increases operating costs resulting in losses for the company because it has to pay suppliers and workers despite less purchasing. There have been new entrants in the market with cheaper diet pills, and the company finds it hard to continue the production of the diet pill. Producing the diet pill is expensive, and it cannot compete with the prices of the other diet pills in the market. Continued production will only increase the company's expenses without any positive outcome looking at the sale volumes of the product. Therefore, it makes sense for the company to pull the product from shelves to reduce production costs and concentrate on other successful products.
Cusumano, M. A., & Gawer, A. (2002). The elements of platform leadership. MIT Sloan management review, 43(3), 51.
Liedtka, J. (2011). Learning to use design thinking tools for successful innovation. Strategy & Leadership.
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