Gradually Changing the Package of a Product That Depends Heavily

question 60

Essay

Gradually changing the package of a product that depends heavily on brand loyalty can be successful if each change is minor. Over the course of a year or more the package may change totally in appearance without offending or confusing brand loyal customers. What factors contribute to forgetting to allow this marketing strategy?

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Definitions:

Net Income

The net income of a company, which is calculated by deducting all expenses and taxes from the total revenue.

FOB Shipping Point

A shipping term indicating that the buyer assumes all costs and risks of loss or damage to the goods once they are shipped by the seller.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.

Delivery Expense

The cost incurred by a company to transport its goods to customers, including freight and shipping fees.