Business and Management
Submitted By herd1991
Terra Cycle Company
Chantal herd chapter 10 homework 1. What type of consumer product is Terra Cycle’s plant food: convenience, shopping, specialty, or unsought? Why?
The products that are manufactured by the Terra Cycle plant food manufactures for the customers can be categorized as the specialty product. Specialty products are commodities that are mostly bought by the customers from the shopping centers. Since the plant products manufactured by the Terra Cycle firm satisfy the desires and preferences of the customers, the products are usually intensively searched by the customers. The end products of the Terra Cycle are bought in bulk by the customers since the products are unique and effectively suite the consumers. The customers are also keen about any change that is made to the food products that are manufactured by the Terra Cycle. Any slight change that is made to the plant flood staff attracts the attention of the customers. This has made it almost impossible for the Terra Cycle to make any sudden changes to the food products produced by the firm.
2. Go to www. terracycle. net and look at the types of products the company sells. Describe their product mix. How wide is it? Which basic product lines does it sell? How long are they?
The TerraCycle manufactures various diverse products that are made readily available to the customers through distributing the products to the marketplaces. Since the company manufactures numerous products, it is better for the company to purchase all the related products together. This is very vital since it reduces the high charges that the company would incur if the manufactured products are manufactured and sold as a single unit. Purchasing of the products that are associated as a single unit is cheaper compared to purchasing the product one after the other.
Selling of the related products together reduces the money that would be incurred to the transport expenses, and the advertisement fee. The product mix of the TerraCycle is wide enough since it includes almost all the basic commodities. The key product line that the TerraCycle concentrates in purchasing its products is the price of the commodities. The products that fall in the same price range are made to the customers in bulk. The price range is used since it is simpler to identify the products that are affordable and are preferred by the customers.
3. Do you think that product line extension or product line contraction would make more sense for TerraCycle at this stage of the company’s growth? Why?
The product line concentration makes more sense for the Terracycle Company at the state at which the company is since it reduces the loss that the company might incur. The state of growth of the TerraCycle firm is undergoing needs saving of more capital. This is to ensure that the company is capable of using the available cash in advertising its products to its customers. The TerraCycle needs to attract more customers in purchasing more of its products. The more the TerraCycle makes profit is the more the company will become more competitive in nature. The enormous profitable returns made by the company ensure that the firm develops.
4. How well do TerraCycle’s bottles perform the four packaging functions discussed in this chapter? Go to www.suedbyscotts. com to see what TerraCycle’s products look like compared to the Miracle-Gro line. Do you think TerraCycle’s package design distinguishes their products well enough from those of the industry giant, or are they similar enough to cause customer confusion?
Although the TerraCycle has tried to make the packaging of its products unique to attract more customers, the package of the products resembles that of the Miracle-Gro organization. The similarity of the package of the end products of the two companies has made it difficult for the customers of the TerraCycle to indentify the products. This has made the company sales to reduce since some customers confuse and purchase the products of the Miracle-Gro organization. Therefore, the TerraCycle should consider changing the package of its products to ensure that the commodities are unique. This will ensure that the loyal customers of the TerraCycle Company purchase the correct products in the marketplaces.…...