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Group 6 Questions

Cody Blackburn

Group 6, you have been assigned the following case: 

Case Yak Milk for Case Group #6

Please see mini case on page 312.Keep all questions as they are and answer completely. Then ....
Add Question #6: Identify a major crossroads in the business of yak milk and how it was solved.
Describe whether this was the best course of action. What is your evaluation based upon, be
specific? 

1. How did Dongzhou Gongbu “discover” his new product?


a. Dongzhou Gongbu “discovered” his product through observations made as a native
Tibetan. Through his interaction as an employee for the Chinese government he was
able to observe the difficulties that the Chinese government faced with regards to
provide a sustainable source of food for their Country. He saw the opportunity to use
Yak’s as a sustainable source of food generation that could be used on the otherwise
unfarmable land masses throughout China.
2. What was his “total product”?
a. According to the text, a ‘total product’ is defined as “The entire bundle of products,
services, and meanings of your offering; includes extras like service, warranty, or
delivery, as well as what the product means to the customer.” (Katz & Green 300, 2020).
In this circumstance, Dongzhou’s total product would be a healthy, and sustainable
drink full of nutrients that also honored the cultural status of that Yak within China.
3. Who do you imagine is the target market for yak milk?
a. A target market is defined as “A marketing term (also called serviceable obtainable
market, or SOM ) that refers to the group of customers in the area you plan to serve
who would be likely to be interested in your product, or those of competitors. Target
markets can refer to individuals or market groups called segments” (Katz & Green 319,
2020). Dongzhou’s target market would-be Middle-Class people within China, but this
could be further segmented down into Middle-Class people within China who are
looking for a healthier and sustainable drink alternative.
4. How might he use this in advertising?
a. Advertising is “Often used to support the corporate identity and value propositions that
are established through public relations efforts. Part of conveying your message to your
customers, advertising outlets include newspapers, magazines, billboards, television,
and Internet banner ads, to name a few.” (Katz & Green 335, 2020). Dongzhou would be
able to use his target market to devise an appropriate and effective advertising strategy
that focuses on establishing his companies’ public image as a local renewable source of
a new healthy alternative in Yak Milk. Providing Discounts and spreading online publicity
about his local sources would be an advantage that he could build on. Another
competitive advantage Dongzhou would have would be the ability to provide customers
with the feeling that they’re helping solve the food instability in China by using a
renewable and locally produced milk that makes use of otherwise unusable land.
5. Can you think of another product that is basically the same as the competition and has been
positioned much differently in order to command a higher price?
a. Toyota and Hyundai are essentially the same product. Both are Manufactured in Japan
and exported, both have competing models of vehicles that are extremely similar, and
both have competing gas mileage and luxury value in their newest line of vehicles.
However, Hyundai because of their marketing as a cutting-edge competitor is able to
price their cars at a premium slightly above Toyota, due to their marketing and focus on
‘creature comforts’ such as leg room and upholstery.

6. Identify a major crossroads in the business of yak milk and how it was solved. Describe
whether this was the best course of action. What is your evaluation based upon, be
specific? 

a. A major crossroads for Yak Milk, was the choice that Dongzhou made to market
his product as he did, and to supply his customers with the knowledge that the
Yak’s that were used to provide the milk were organically raised on the relatively
pollution free Tibetan Plateau. This combined with his emphasis on the
additional benefits that Yak Milk provides over Cow Milk, allowed him to market
it as a nutritional drink. This strategy, which provided an opening to price his
product at a premium gave Dongzhou the ability to make a profit on the more
expensive production of the Yak Milk.

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