Discussion Question #1

Discuss Apple’s pricing strategy in terms of its future implications for the

company’s channel strategy.

Apple's premium pricing strategy will remain important in maintaining the

company's reputation for having innovative and excellent products. However, it could

result in them losing sales for some items, such as their smartphone product, as the

market for smartphones is already mature and rival companies are selling cheaper

models that are comparable to Apple's. Although their price point strategy has been

successful in the past, the previously mentioned reasons suggest that it may not be in

the future. They may eventually need to offer more unique pricing arrangements,

including specialized discounts that will encourage people with lower incomes to buy the

products.

Discussion Question #2

Should Anheuser-Busch InBev proceed with the margin cut? Why or why not?

They need to think about their relationships with distributors. Distributors and

retailers need to be able to cover their expenses while earning a decent profit.

Distributors may choose to buy less of the manufacturer's product if the manufacturer

increases their margin. If their own profit margin is not sufficient, they might reconsider

their business relationships with some of their retailers. They should also consider how
their margin increase will impact their product's overall price and appeal, whether to

distributors, retailers, or customers.

Retailers have the right to raise the product's price. Compared to a price

decrease, consumers are more sensitive to price increases. Without boosting the

margin by shifting business expenses, it is also possible to make savings elsewhere. A

positive and beneficial relationship with the distributors could be maintained while

shifting some of the manufacturer's other duties, like transportation, to the distributor.

I would not consider the 15 cent margin cut, I think lower the number. They still

have a slight advantage over their competitor in that they are more reasonably priced

for distributors and customers because they did not take the full 15 cent to make them

equal with them.