INTERACTIVE VIDEO

Get ready to explore the world of business with this interactive video. Once launched, you'll dive into interactive activities, master case study analysis, and challenge your knowledge with a multiple-choice quiz
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OVERVIEW

Do you want to understand how businesses could ever make a profit selling products at a loss? In this interactive video, we will explore the concept of loss leader pricing. This is a tactic where businesses sell a product at a price lower or matching its cost to encourage customers to buy other items at a higher profit margin.

We will follow the story of Francis Clarke, owner of Peaceful Foods, an independent supermarket that uses loss leader pricing. We will see how he attracts customers to his store and how this strategy can help him break competing brand loyalties. We will also explain how major companies like Tesco and gaming consoles like PlayStation 5 and Xbox Series X can also use loss leader pricing to drive sales.

By the end of the video, you will have a comprehensive understanding of loss leader pricing and its potential impact on businesses. Get ready to explore this pricing strategy and discover its advantages, disadvantages, and the businesses that may chose to use it.

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  • DETAILED EXPLAINER VIDEO
  • 10 QUESTION MULTIPLE-CHOICE QUIZ
  • 6 INTERACTIVE ACTIVITIES
  • INTERACTIVE CASE STUDY
  • SUPPORTING STUDENT WORKSHEETS

CASE STUDY ANALYSIS
SONY

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  • The interactive case study explores Sony, a multinational corporation with a range of businesses that work across several industries. Sony Interactive Entertainment, their successful gaming division, is best known for its Playstation console. The release of the Playstation 5 was priced below manufacturing costs, initially leading to a loss on each console sold. However, Sony has now announced that PS5 sales have become profitable as of August 2021. This loss-leading strategy for gaming consoles is not new, as the PS4 also initially sold at a loss.

Teacher Resources

Below you can find a range of teaching resources, from printable PDFs to Google Forms, along with an uninterrupted video to play to the entire class.
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