GMAT Essays (AWA)

BTG Members, can you please evaluate and rate my essay. Appreciate your time on this.

Question :

"Our promotional price reductions on energy drinks have been highly successful, as we have seen a dramatic increase in unit sales. Further, surveys of our consumers indicate that this promotion was favorably received by the majority of our customers. Therefore, to improve our company's profitability and enhance its perception in the eyes of consumers, similar price reductions should be offered on all drinks produced by our firm."

**** Essay Begin ******

It is a common strategy for companies to introduce their products at a promotional price, which are lower and generally valid for a shorter period of time, to lure customers and increase their sales. The argument claims that a beverage company should offer price reductions on all of its products to improve the profitability and enhance its perception in the eyes of the consumers. Though the author's claim follows conventional wisdom, his presentation is based on several questionable premises and assumptions. Further, it is based solely on the little evidence that the author offers.

The primary issue with the author's reasoning is that it does not provide any substantial evidence that the increases in sales are solely due to the promo price reductions. No other factors such as increased advertising, marketing were considered at all. Further, the argument assumes that the increase in sales leads to increase in profits. This assumption is flawed especially when the increase in sales are due to promotional prices which are always lower than the sale price. It is very well possible that the company may not actually be making any profit at all and is just trying to gain popularity with the increase in sales at the expense of lower profits.

The argument also hinges on the assumption that the customers will continue to buy the company's products at the original sales price after the promotion ends. There is no substantial evidence to justify this assumption. More often than not, consumers will not continue to buy a product or a service once the promotional prices are no longer offered. They simply tend to look for a cheaper alternative that is of comparable quality.

Furthermore the argument is at fault for basing the conclusion on an assumption that higher sales means greater quality product and thus greater customer satisfaction. This is not always the case. As mentioned before, the increase in sales could be just due to a promotional price offer. Consumers may just want to try the product because it is offered cheap.

Though they are several issues with the premises and assumptions, the author could strengthen the argument by providing concrete examples and further evidence to his claims. For instance, he could have mentioned that all other factors in the company such as marketing and advertising have kept constant to add strength to his argument that the increase in sales is solely due to the promo price reduction. In addition, the survey demographics and the details of the survey could be mentioned to substantiate the fact that the consumers are indeed very much satisfied with the quality. Moreover it would be helpful if some facts are outlined that prove all other products of the company are similar to the energy drink.

In summary, the argument is based on unsupported premises and unsubstantiated assumptions. If the author truly hopes to convince the readers, his argument has to be largely restructured by fixing the flaws in the reasoning and providing more evidence.

**** Essay End ****

Thank You,
LG