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International Marketing - Pricing strategy


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Example of Group project about evaluation of pricing strategy to be chosen by a firm in order to pursue maximum profitability reducing losses. Minimum, medium and high prices strategies have been taken in account for the estimation

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International Marketing - Pricing strategy

  1. 1. Franz S.p.A  First order of business to pursue a profitability aim in order to cover a high break even point due to the high costs of the technology employed in the production process  Calculation of the weighted average price of our challengers Chicken & Eggs Fish Fruits & Veg Total Equivalent prices for 60 pounds boxes (€) 0,57 1,08 0,42 Total market (units x 1000) 2.626 1.574 2.857 7.058 Weighted Average Price € 0,622936
  2. 2. Franz S.p.A MINIMUM PRICE STRATEGY Minimum price = € 0,52 € Trying to match the figures of the production costs coverage and the lower price possible avoiding to produce the good creating debt
  3. 3. Franz S.p.A MEDIUM PRICE STRATEGY Medium price = € 0,65 Amount obtained leaving from the weight average price that allows to achieve the highest profitability level in the chicken and eggs - fish bins markets covering the losses in the fruit and vegetable segment
  4. 4. Franz S.p.A HIGH PRICE STRATEGY High price = € 0,70 Maximum level of price preserving a minimum market share in the fruit and vegetable sector and the highest price level to ensure a constant increase in revenue
  5. 5. Franz S.p.A PRICE STRATEGY CHOSEN MEDIUM PRICE € 0,65 Estimation of the single bins price granting the maximum profitability in the two markets with an inelastic price curve (chicken and eggs, fish) and reducing the losses in the other market (fruit and vegetables) more susceptible to a variation of the bins price
  6. 6. Franz S.p.A Thanks for your attention