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Name Professor Class Date 1 Denon, a manufacturer of semi-professional audio components sells the same basic version of their surround sound receivers using different model numbers and finishes (silver, black, gold tone) depending on the market in which it is intended to sell…
Some segment markets may place importance on such color which is why Denon has to adapt. For example, in China and some eastern culture, the color of gold has favorable association unlike in the west where it is perceived as inappropriate for audio components. Warranties are also limited as a marketing strategy in some market to lower the price of the product to make it competitive in a price sensitive market. This could however pose issue in the long run because of the limited coverage of after sales support. What Denon could do is to improve its process to make it more efficient and relocate to regions where overheads are lower. The saved cost could be translated to lower prices without compromising the warranties of its products. 2 What are the problems you are likely to encounter with the distribution of your products in: China, Japan, and India? Which country poses the biggest problem? Explain your answer. The problems that will encountered in distributing products will depend on the market it is being distributed. In China, there are two main problems that a distributor or manufacturer will encounter which is the attempt to counterfeit Denon and the competition against cheaper counterfeit or mediocre products. In Japan, it would be the intense competition because Japan is basically home to the best brands in electronics such as Sony. ...
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