GMAT Essays (AWA)

n a competitive market of similar products, a promotional reduction in goods will attract more customers .Thereby creating an increase in sale price and making the customers happier.

The conclusion the author made that, promotional reductions of energy drink product increased sale and it should apply to all the products. The argument has major flaws. First,we can not assume that a sale increase of a specific energy drink will drive the sales of all the companies drink product. Customers do have preferences , because that specify energy drink provides more nutrients than the other products. Secondly, the advertised energy drink caterers to a particular audience . For example, the audience for a' Coke' is different from than of "Minute Maid'. The argument is completely flawed if the company do not target there customers and know their preference , before imposing reduction for all products.

The argument can will be strong , if the company considered surveys results of not only majority but also minority in other to know what other products the customers are willing to buy at a discounted price. Its every important to do a properly research and not just assume that the majority prefer a specific drink. Also, the company should have seasonal promotions , and not have all there products discounted at the same time. Because this can create a loss in total revenue, due to meeting their customers demand.

Promotional price reduction is win win situation for customers, but the company should be able to able to marginalize their production whereby the customers will be save and their profits will rise.