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  1. Sally and Don work in the Marketing Department of a food preserves company. Read their dialogue and find English equivalents to the expressions below:

- зрости (про ціну)

- підняти ціну

- рекламна компанія

- виробник, який встановлює найнижчу ціну на певний товар

- упаковка

- конкурент

- товар, рівень продажу якого суттєво залежить від ціни

- надавати перевагу певному товару

Don: Hi, Sally. I need to show you something. Look at these figures. The price

of sugar will increase by 10% next year.

Sally: Oh, no. That’s terrible! It means trouble for our jam line.

Don: Precisely. Sugar is our main ingredient. So, what do you think of that?

Sally: Well, we are not the price leaders in this area and jam is a very price

sensitive item. According to the market research the consumers are not

particularly brand loyal about jam.

Don: Yes, that’s right. And the rising of the price of sugar will cause the

increase of the price of our product. But I have no idea.

Sally: What do you mean?

Don: What if there was a possibility of changing the ingredients in the jam so

that we wouldn’t have to raise the price.

Sally: Ah! Then we wouldn’t have to worry about the price rise on sugar

because we’d be able to sell jam at the same price. The idea is that we

could market cheaper jam. Excellent! That would be a great promotional

campaign!

Don: Sure. If we do it right we’ll sell more and become the leader in the

market.

Sally: Now the first thing is to talk to the Research and Development team.

Don: Right, and we’ll see when they could have some samples of new

formulas ready.

Sally: What about the market research? I think we should schedule some tests

for responses to the R&D samples.

Don: Yes, I think so, too. We should also change the packaging. There is a lot

to do, Sally. Let’s continue the talk in the cafeteria. It’s lunchtime

already!

Sally: OK, let’s go. We’ve got a lot to discuss.

Complete the gaps with the words below:

Increase packaging competitor price leader price sensitive item

    1. If the price of this product ….. nobody will buy it.

    2. This company is the ….. in this area, they can sell the product at the lowest price.

    3. Customers do care about the price on this product, it a very …..

    4. Attractive ….. helps to sell products.

    5. Our ….. has become the price leader in the market.

Answer the questions:

  1. Who is the price leader?

  2. What is Sally and Don’s idea of becoming the price leader in the jam market?

  3. What goods in your local grocery store do you think are very price sensitive?

  4. Do you agree that having many competitors in the same market influences your business? Explain your answer.