GMAT Essay Topic 464 - The following appeared in an Excelsior Company memorandum. "The Excelsior Company plans to introduce its own brand of coffee. Since coffee is an expensive food item, and since there are already many established brands of coffee, the best way to gain customers for the Excelsior brand is to do what Superior, the leading coffee company, did when it introduced the newest brand in its line of coffees: conduct a temporary sales promotion that offers free samples, price reductions, and discount coupons for the new brand." Discuss how well reasoned . . . Etc.
The author of the argument assume that the best way to gain customer for the new brand of coffee of the Excelsior brand is to do what Superior company has done. It has conducted temporary sales promotion that offers free samples, reduced the price and provided discount coupons for its new brand. This assumation corelates that what has work for the Superior, the leading coffee company will work for Excelsior too. However the line of reasoning in the argument has many flaws.
First of all, assuming one method has work for one company then it will work for other as well is a weak analogy. Superior is a leading coffee company. Therefore it may have a large customer base and also a large market. Therefore the method of promotion has worked for it. It does not mean it will work for Excelsior . Since the author has not provided any information regarding Excelsior’s customer and market space, success of the plan is not gurantee.
Further Superior is a leading coffee company. And conducting a temporary sales promotion which offer free samples, reducing the price, and giving discount coupons has worked for it. But there is not much information about the Excelsior company in the argument. And therefore assuming the same methods will work for it is not convincing enough.
Further the author has not mentioned anything about the financial conditions of the excelsior company. The company may be a small enterprise. And therefore the company may face some loss if they adopt the above methods.
Finally the author has assumed that the above mentioned methods are only factors for the success of the new brand of Superior company. The author has neglected the fact that there may be some other reasons as well. Superior company may have spent huge budget on adversitement.
Therefore to strengthen the argument, the author should have provided information regarding Excelsior market space, customer base and financial conditon. Moreover the author should have shown data and figures to show how efficient was the above method for Superior company or they have adopted any other methods as well.