Quiz Name | Exercise 6 Passage Three |
Appendix (for reading content...etc)
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Description
Wrigley’s Chewing Gum
1) Wrigley’s chewing gum was actually developed as a premium to be given away with other products rather than as a primary product for sale. As a teenager, William Wrigley Jr. was working for his father in Chicago selling soap that had been manufactured in his father’s factory. The soap was not very popular with merchants because it was priced at five cents, and this selling price did not leave a good profit margin for the merchants. Wrigley convinced his father to raise the price to ten cents and to give away cheap umbrellas as a premium for the merchants. This worked successfully, confirming to Wrigley that the use of premiums was an effective sales tool.
2) Wrigley then established his own company; in his company he was selling soap as a wholesaler, giving baking soda away as a premium, and using a cookbook to promote each deal. Over time, the baking soda and cookbook became more popular than the soap, so Wrigley began a new operation selling baking soda. He began hunting for a new premium item to give away with sales of baking soda; he soon decided on chewing gum. Once again, when Wrigley realized that demand for the premium was stronger than the demand for the original product, he created the Wm. Wrigley Jr. Company to produce and sell chewing gum.
3) Wrigley started out with two brands of gum, Vassar and Lotta Gum, and soon introduced Juicy Fruit and Spearmint. The latter two brands grew in popularity, while the first two were phased out. Juicy Fruit and Spearmint are two of Wrigley’s main brands to this day. |
Duration (in min.) - set to '0' => unlimited | 0 |
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