Answered: You have been hired by a regional…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

You have been hired by a regional supermarket chain as the candy and
snack buyer. Your shelves are dominated by national firms such as
Wrigley’s and Nabisco. The chain imposes a substantial slotting fee to
allow new items to be added to their stock selection. Management
reasons that it costs a lot to add and delete items, and besides, these
slotting fees are a good source of revenue. A small, minority-operated,
local firm produces several potentially interesting snack crackers and a
line of gummy candy, all with natural ingredients, added vitamins,
reduced sugar, and a competitive price—and they also happen to taste
great. You’d love to give the firm a chance, but its managers claim the
slotting fee is too high. Should your firm charge slotting fees? Are
slotting fees fair to the relevant shareholders—customers, stockholders,
vendors?

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