Explain which pricing and distribution strategy each brand demonstrates.

1. Walmart vs. Amazon

a. Do you believe that Walmart and Amazon’s price war is healthy? Why or why not? Who, besides the two retailers, wins or loses in this situation?

b. Envision the typical Walmart customer, and then envision the typical Amazon.com customer. What differences do you see? Similarities?

c. Explain which pricing and distribution strategy each brand demonstrates. Justify your answer.

d. Does either Amazon and Walmart use the other Ps of the marketing mix to compliment and/or strengthen its price offering? If so, how? Justify your answer.

2. Trader Joe’s

e. Trader Joe’s value equation is essentially low prices on unique, “gourmet” food items. Describe how Trader Joe’s product choice and pricing execute this Good-value pricing strategy.

f. What decisions about product, place, and promotion help Trader Joe’s ability to offer such special items at such a low price?

g. How does Trader Joe’s demonstrate the importance of price in creating value for customers?

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