Even famous and iconic Fortune 100 companies sometimes manufacture defective products that end up on the shelves of thousands of retailers. This is what happened to Johnson & Johnson, one of the world’s leading manufacturers of patent medicines. In 2009, J&J withdrew from retailer shelves significant quantities of some of its best-known and successful products such as Motrin, Tylenol, Benadryl, Rolaids, St. Joseph aspirin and others. Consumers complained about a musty, mildew-like odor that could cause nausea, stomach pain or diarrhea. Given that even the largest and most highly respected companies such as J&J can, at times, produce defective products that make their way through retail channels all the way to the consumer, should channel members view such incidents as inevitable? Discuss.
Answer to relevant QuestionsPrivate-label products sell in supermarkets typically for about 10 to 20 percent less than national brands, yet the profit margins realized by supermarkets are usually about 10 to 15 percent higher than for national ...What should be the role of the channel manager in formulating the manufacturer’s pricing policies and strategies? Discuss some alternative strategies available to the manufacturer contemplating the passing of price increases through the channel. Explain the rationale for including selling support by resellers in a distribution channel as a major tool for implementing promotional strategy. “I just can’t get these guys to feature our new fresh pasta products the way they should,” remarked Alice DeMarco, a product manager for a major manufacturer that had ventured into the new growth field of fresh ...
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