Mgt301 GDB No. 1 solution

Discussion Question:

"If XYZ Company has believed that their product line is of superior quality but their sales are quite low. What might be the reasons behind this?"

Answer:

Following could be the reason of Low-sales :
Price.
Price of the product is main point for every customer while making purchase some thing. High quality of the product is
mostly increase in price of the good and this increase of the price of good
peoples prefer to purchase low price good and cause low sale.

Customer preferences.
In some cases customers are some mind set of the product and services due there culture, personal liking and disliking. This is also a
main cause of low sale.

Substitute of product.
In every market some Substitute of products are availabe on low prices that also cause
low sale

Change in demand.
With the passage of time and change in fashion, peoples demand are go change so product are updated according to that requirement if we dont do so product sales are
decline

Availability of the product.
In is also a main point that cause low in sale , if product are not easily availability in the market than the peoples prefer that good that are easily available to there door step. So not availability of the product cause decrease in sale.

Information about the product.
It is necessary to inform about the product and services to the customers If we dont do so than who peoples come to know about the
product? Lack of advertisement also cause decrease in sale.

Another:

Prices may be too high for the economical customers.
The XYZ Company may not be hitting the concerned target market for its sales.
Another reason for the low level of sales could be the lack of variety or assortment of products.
Reason for a poor level of sales could be the poor service XYZ Company provides to their customers.
Or perhaps the fact that their sales did not reach to take off at all, is because the company have not previously done adequate market segmentation.
XYZ Company probably has a good product and offer good customer service, but may be their products are not known to consumers because of lack of advertisement.
Probably the reason for their low sales to be their competition, which is offering a better product, is to better serve customers, or simply their products are of the same quality as XYZ Company but have a lower price.
…………..

1improtant think you have forgotten may be that they may be don’t do right advertise and also they may be do not analyze the marketing before launching the product

If
XYZ Company has believed that their product line is of superior quality
but their sales are quite low. What might be the reasons behind this?

What I think:

1. Price is too high

2. they are not hitting the right target market

3. the particular product is not that much popular in costumers

4. there is an another product in the market with same quality but low price