(I will do the voice over and I will be recording my presentation on screen cast

(I will do the voice over and I will be recording my presentation on screen cast… I only need the 6 slide power point)
“There are no new articles provided for this assignment. You do not really need them, just use your own knowledge as a customer, and the articles and your answers from Discussion Board #3 to give you ideas on what these companies are facing and what they need to do to sell more food.”
(Below I am attaching my discussion 3 post)
Part One:
1. What are some of the reasons that the industrial, packaged food brands are losing out to smaller and newer brands of food?
One reason the sale of industrialized, packaged food brands is declining could be due to consumer demand. “This decline is the culmination of years of changing consumer preferences, which clearly indicate shoppers are rejecting processed foods in favor of fresh, free-from and clean label options” (Devenyns 2018). Consumers, like myself, are beginning to read ingredients on food labels and avoiding chemicals and preservatives, therefore we are leaning towards fresh and organic food options. Another reason the sale of packaged food brands is declining could be because of meal kits and food delivery options such as Factor, HelloFresh, HomeChef. Grocery stores have also begun to sell fresh, meal kits that contain all the ingredients and seasonings a consumer might need for that particular meal which makes it convenient and healthy.
2. What do you think the big companies that own these brands should do now?
The big companies should think of a rebranding system. Focus on incorporating natural ingredients in their foods and advertising it to the right market. In addition to rebranding, these big companies should push their advertising on social media platforms such as TikTok, Instagram, and Facebook. If they want to push it a little further, they should be thinking outside of the box when it comes to advertising. I have listened to a few podcasts where I have heard advertisements for the meal delivery service, Factor. As a consumer I was curious because I had heard Factor being advertised on a few different podcasts that I listen to. This actually led me to try factor meals and I truly enjoy them.
3. If Heinz or Nestle or Kraft start to come out with healthy, local, organic, “real food” items, will that be enough to save them from the smaller, newer companies without the history? Explain.
I do not believe switching to healthy, local, and organic food items will help companies like Heinz, Nestle, or Kraft. One reason I do not believe it will help these companies is because they have already made a name for themselves. It will be difficult to convince consumers to try these new “real food” items with better and cleaner ingredients. In the article ‘Is the era of big food coming to an end’ Nestle is mentioned. It talks about ceasing the use of artificial food dyes in their chocolates by the end of 2015. Newer companies tend to sell their items at healthier food establishments such as Whole Foods, Fresh Market, and even GreenWise Market which is a chain that stems from Publix. I believe the intention of big brand names are good but newer healthy-minded food companies are working diligently to establish themselves which is causing their sales to increase.

Part Two:
1. According to the article, matching music by artists to music fan’s preferences is critical to Spotify’s success. Why is this? Spotify does this simply because the better of the match they make with the artists and the music fans’, the more they will be able to grow their membership base as well as keep/gain more listeners. This makes it easier for the listeners to find music that they like. Many music platforms do not have this feature which is why most people are interested in Spotify.
2. Spotify makes money (“monetizes”) from its freemium business model in two ways: advertising supported (free) services, and premium (paid) services.
a. Describe what each service is, and how the company monetizes each of these two services. The Ad-Supported Service interrupts the listeners by playing ads every few minutes. They limit the amount of skips you can use (6 skips per hour) and they restrict you from re-playing songs. The Ad-Supported Services acts as a “funnel” to navigate people into purchasing the premium feature. This is because they know no one wants to be interrupted while listening to their music. The Ad-Supported Service is also of course an option for the individuals that cannot afford the premium option. The Premium Service provides standard, student, and family plans. This is to interest different users based off their lifestyle. They also provide offline/online unlimited streaming, unlimited skips and replays, and no interruptions!
b. How do the two services work together? The Ad-Supported services drive more than 60% of Spotify users to purchase the premium feature. It also serves as an option for the people who cannot afford premium so everyone has the option to enjoy music.
c. Which of the two services has the higher gross margins? Why? The Premium Service has the higher gross margin. This is because the more music that is streamed, the more money Spotify makes. The Premium service allows listeners to stream more music because they do not get interrupted, unlike the ad-supported service. They also get the privilege to replay songs. The more you replay a song, the more streams it gets.
According to the article:
a. What % of Spotify revenue comes from the free, ad-supported services? The ad-supported services revenue is 19%
b. What % of revenue comes from premium services? The premium service revenue is 22%

4. According to the article, in Q3 2022:
a. how many premium subscribers did Spotify have? They had 195 subscribers
b. What was the total revenue of the company? The total revenue was 3,036
c. What was the profit or loss (operating (loss)/income) of the company? The operating loss/income was 228

Part Three:
1. What is the Razor/Razorblade strategy? What are some other examples of this strategy other than razors? The razor/razorblade strategy is a pricing strategy when one product is sold at a loss or discount and a related consumable product is marketed at a premium to make money. Another example of this strategy could also be “freemium”. As we discussed in part two people will start off at the with the option that is free and eventually upgrade to the premium option for better quality/privileges.

2. What are Dollar Shave Club and Harry’s doing to cause disruption in the shaving industry? The Dollar shave club, created an online platform that offers delivery to the persons home instead of picking it up at a store. They also beat the stereotype of razors being overpriced. Hence the reason why they are called “Dollar” Shave Club. Harry’s is a more premium version of Dollar Shave Club. Harry’s has fast and free shipping. Their individual blades cost $1.67 while Gillette’s individual blades cost $4.47. Gillette’s 12-pack of blades cost $53.58. You are paying more for cheaper quality. Harry’s seems to have great quality and of course cheap pricing. Many people have tried them out and stuck with them ever since and are not going back to the generic brands which is why Gillette is hoping for a defect in one of the brands to come up.

3. What is Gillette doing to try and hold on to their position? Gillette started to cut down their pricing by 20%. The dollar shave club offers refills for $.20 a cartridge while Gillette ranges around 2 to 6 dollars per cartridge. Gillette is desperate to get back into the razorblade game. Once they saw that Harry’s and the Dollar Shave Club started to pass them up in the industry, they did everything possible to try and get back up there.

4. How do you buy razors and blades? For example, do you have brand loyalty, or seek choices based on price…are you “locked in” to using certain blades because you have certain razor handles? Explain your buying behavior. If the price on the razor is too expensive then I most likely will not buy the product. I usually buy the BIC brand. They are not too pricey and the quality is quite good. I am open to trying the Dollar Shave Club or Harry’s considering all the great reviews I have seen on them. They are not pricey at all and obviously seem to have good quality. Plus, I do not have to leave my house to purchase them.