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Billy`s cookies



1.0Explain with details Billy’s problem.

Billy’sproblem is that he did not come up with proper mechanisms orstrategies of sensitizing the coffee users and shops about thecookies. Usually, when an individual is starting a new business, heor she is likely to face various challenges because the targetedaudience might not be aware of the product that is to be introducedinto the market (Jacobi, Freund &amp Araujo, 2015). That is thechallenge Bill is facing. After identifying the market gap, he shouldhave come up with means or creating client awareness. In this case,Billy ought to have considered various options depending on thecapital and the scope of the targeted audience, for instance,designing posters for advertising his cookies. Also, he should haveused social media platforms such as creating a business website orFacebook account and invite people to like the page. That will havesignificantly helped in creating a general idea amongst the consumersso that once he starts to distribute them, they will be readilymarketable.

2.0Which learning theory is Billy trying to leverage in each of the fourscenarios?

2.1Provide the coffee stores with a few thousand free cookies toautomatically give away with each coffee, with this approach,consumers will become conditioned to eating a cookie with theircoffee.

Inthis scenario, Billy used a cognitive problem-solving theory to makeconsumers embrace a culture where they will be eating the cookie withtheir coffee contrary to the past where they used to take coffeealone.

2.2Provide the coffee stores with free cookies to give away as part oftheir loyalty card programs (that is, a free cookie with their freecoffee after 5 purchases) .This is designed for consumers to see thecookies as a reward and will hopefully purchase one when they want toreward themselves.

Inthis particular situation, Billy was using instrumental or operantconditioning. Giving free cookie with free coffee after fivepurchases will motivate the consumers to buy them as a gift to rewardthemselves.

2.3Give money to his family and friends to go to the coffee shops dailyand buy a coffee and a cookie. He saw this is a longer-term programdesigned to get other consumers to notice that other peoplefrequently buy cookies with their coffee.

Bygiving money to his family and friends to purchase the cookies andcoffee from the shops, Billy was using a vicarious learning theory toattract other customers, bring them on board so that they can startto consume the cookies every time they visit the shops for coffee.

2.4 Design a series of clever posters that will sit on the counters atthe coffee shops. As an example, a photo of a coffee, with theheadline “What is missing from this picture?” and the copy at thebottom says Billy’s Cookies low-fat, high-quality, and designed togo with coffee.

Designingposters and placing them on the counters of the coffee shops, Billyapplied classical conditioning theory because the advert will attractthe attention of the consumers and as time goes by, they will startconsuming the coffee with cookies.

3.Which promotional approach do you think will prove to be the mosteffective? Why?

Inmy view, the fourth promotion approach where he designs a series ofposters of his cookies and position them on the counters of coffeeshops will be effective because of various reasons. First, it createscustomer awareness. For instance, the posters were placed at astrategic position where every client will see them whenever theymake their payments. That will encourage the customers to ordercookies every time they take coffee (Jacobi et al. 2015). On the samenote, the advert is trying to persuade customers by making them knowwhat they are missing. As a result, more consumers will be interestedin trying out the new product. Secondly, the advert itself isappealing to the coffee users. Researchers conducted by variousscholars’ reveal that fatty foods have various health complicationssuch as heart burns, acidic reflux, bloating and increased risks ofcontracting various heart diseases. Therefore, making the clientsconversant with the features and quality of his cookies will beinstrumental in encouraging them to consume them because theymanufactured in a way that they don’t have any side effects due tofats. Also, they are designed to be taken with coffee.

4.Do you think that Billy will achieve his vision of making aCookie/coffee connection?

Yes.I believe that Billy will achieve his vision of the cookie and coffeeconnection. That is because there is a market gap for the cookies.Jacobi et al. 2015 argue that startup businesses will only thrive andperform well when there is little or no competition from establishedentities. For that reason, Billy has already developed the productthat is not available in the market, which means he will not besubjected to any form of competition from other businesses. Equallyimportant, he has identified the primary target market or consumersfor his product. All that Billy needs to do is to create awareness ofhis products to both the retailers so that they can cross-sell thecookies. Also, he needs to sensitize coffee consumers about thevalue, quality, and importance of taking cookies with coffee. Doingthat will considerably increase the consumption of his cookies,improve sales, widen its client base and make the business succeed(Jacobi et al. 2015).


Jacobi,E. S., Freund, J., &amp Araujo, L. (2015). ‘Is there a gap in themarket, and is there a market in the gap?’ How advertising planningperforms markets. JournalOf Marketing Management,31(1-2),37-61. doi:10.1080/0267257X.2014.943675