Markpten2 Case Study

Markpten2 Case Study
The MarkTen2 is a product of innovation and intends to push the boundaries of the industry. With
such revolution comes the threat of incorrect pricing which may lead to the diminishment of a
product before it even starts. Altria is a company that strives to provide value to the customer; allow
the benefits each individual receives from the MarkTen2 to have far more impact than the price to
have it. Altria intends to approach the MarkTen2 pricing as a mix of both demand and competition–
orientated focus. As the electronic cigarette market has shifted away from Altria to other
competitors, the MarkTen2 price will penetrate the market with a perceived discount compared to
competition while taking full advantage of what the company knows the ... Show more content on
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This pricing objective allows Altria to focus on both gaining sales and increasing market share.
Altria is fortunate to have a strong financial position that it is able to sustain lower introductory
margins in order to beat out competition and gain market prominence. Constraints must as well be
addressed before they become a threat to both the product and the brand. The MarkTen2 intends to
capitalize on the consumer demand for both the product and the brand. As electronic cigarettes
become a more popular alternative to regular tobacco products and an interest to non–smokers, the
new and innovative product will position itself out of the unhealthy eye and serve a better purpose to
the end consumer. It is obvious that Altria as a brand is a giant in the industry and has a
methodology to both gain and retain loyal customers. The MarkTen2 will serve as a beneficial
compliment to the direction Altria is headed and the future of the tobacco
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Eurotunnel Vs. The Ferries Case Summary
Eurotunnel vs. the Ferries Case Analysis
Marketing Problem:
The main problem faced by Eurotunnel's senior management is that they have not developed a
competitive pricing strategy to increase its passenger and freight travel market share.
Case Solution:
Eurotunnel should use a market–penetration pricing strategy at all times to gain freight customers. It
should use a market–penetration pricing strategy during non–peak periods and a premium pricing
strategy during peak periods with passenger car customers.
Rationale:
This strategy works best for Eurotunnel to gain market share for three main reasons: * Passenger
preference among Le Shuttle users * Patterns among peak travelers * Price elasticity of freight
traffic ... Show more content on Helpwriting.net ...
During the common peak travel periods, Eurotunnel will be able to compete on its capacity and
speed competencies rather than price.
Freight users in general go out of their way to get the lowest cost of trip and are very price elastic.
Since trucking companies would take a longer ferry route in order to reduce the cost, it can be
inferred that by offering a cost even slightly below that of ferries at all times to freight transporters,
Le Shuttle will be their preferred choice. By entering the market with a price lower than the ferries,
the trucking companies, which have an estimated price elasticity of demand of –3 to –4, will flock to
the lower price and will unlikely ever return to the higher priced provider. Paired with other factors
valued by the truckers, it is likely that a low price offer from the tunnel would quickly make it the
first choice in channel crossing among truckers themselves as well as trucking companies.
Eurotunnel will be able to support the increase in customers as well as the market–penetration
pricing strategy. Eurotunnel currently has the capacity to accommodate 105% of the channel
crossing market. Thus, even in peak periods, Eurotunnel will be capable of accommodating the
influx of passengers without compromising on schedules or service. Eurotunnel also has low
marginal cost per customer, operating

Strategic Overview : Itlab And ECI Together Have Conducted...
1. Strategic Overview
itlab and ECI together have conducted an IT strategic review, and the below shows the results of the
findings:
Observation Solution Action / Update
Insufficient bandwidth for internet connectivity Increase internet connectivity bandwidth New
connectivity implemented in London and Manchester, which is four times faster
Desktops are over 3 – 4 years old and are unreliable Replace desktops with faster newer ones for
reliability and speed Desktops replaced in London and Manchester with new version of Office 2016
and Windows 10 operating system
Laptops are not personalised, so the user needs to login into Citrix to access ECI systems. Files are
regularly copied on USB to work locally Rollout out new laptops with ... Show more content on
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Offer a group training session on whoever wants it on a quarterly basis The first one on video
conferencing will start on 17th of August for the PA's and then slowly be offered to everyone
Improve security by deploying a second generation anti virus software, educate users on cyber
safety and follow a security framework for processes and policies Implement Bitdefender anti–virus
cloud solution as it also stops malware and phishing attacks.
Gain Cyber Essentials accreditation to provide ECI with a security framework to managed threats
and risks
Raise user awareness on Cyber Security threats Bitdefender is deployed now, and Cyber Essentials
certification has been obtained, with small policies to be implemented like password policy.
An external penetration test will be scheduled in Q4 along with an internal network scan
Simulated phishing test has been carried out and well as a cyber e–learning platform "Wombat." for
all ECI staff
Simplify ECI network by removing aging hardware Move to subscription cloud based services for
better reliability and low maintenance TBA as this is under review
2. itlab (Completed)

Support from itlab is still challenging even though they have helped ECI to implement the new

Basic Pricing Strategies For A New Backpack Entering The...
The price strategy defines the initial, base price and the appropriate strategy depends on the pricing
objectives. There are three basic pricing strategies for pricing a product or service: price skimming,
penetration pricing and status quo pricing. Effective marketing involves the price being set to equal
the perceived value of the product, a backpack, to the target market, university students. The
following sections discuss the alternative pricing strategies, the advantages and disadvantages of
these and the most appropriate strategy for a new backpack entering the market.
Price skimming, also known as market–plus, involves setting a high price when compared to the
competition and then eventually lowering this price. It is usually used for new products and services
that will attract early–adopters willing to pay a higher price. The business can initially reach these
early–adopters to maximise revenue, but this may be limited because students are often price–
sensitive due to their low income. However, the higher price enables companies to test students'
willingness to pay a high price, and then lower the price to appeal to those who are more price–
sensitive. Although, this may aggravate early adopters, a lasting high price may defer mass market
acceptance. The initial high profit margin may lead companies into avoiding cutting production
costs which is necessary for when the selling price lowers. However, price skimming allows the
company to quickly recover product

Marketing Strategy on Indonesia
Marketing Strategy: McDonalds in Indonesia
The company I choice to do a marketing strategy on was McDonalds, "Ba Ba Ba Ba Ba I'm Lovin'
it". I choice McDonalds because it is one of the most universal and internationally known
companies that will always and forever be known for its beautiful golden arches and Ronald
McDonald characters. Of course, I could have gone with Kentucky Fried Chicken or even Ikea but
the thought of not talking about one of the happiest places on earth, and I am not referring to Disney
World, would be a disservice to our American culture. McDonalds has dominantly globalized and
franchised around the world and gives new meaning to what marketing really is about. It all comes
down to the elements of the marketing ... Show more content on Helpwriting.net ...
9th edition pg. 346).
McDonalds Pricing Strategies
McDonalds focuses of four major pricing strategies: product line, promotional, penetration, and
value pricing. Product line pricing is a unique pricing strategy that falls solely on their many product
lines (McDonald's Pricing Strategies). Economic conditions may change rapidly, thus warranting
change in the product or the product line. During the Asian currency crisis, McDonald's replaced
french–fries with rice in its Indonesian restaurants due to the cost considerations. With the collapse
of the local rupiah, potatoes, the only ingredient McDonald's imports to Indonesia, quintupled in
price. In addition, a new rice and egg dish was introduced to maintain as many customers as
possible the economic hardship (International Marketing. 9th edition pg.335). In order to appeal to
the local demographic, international marketers must make sure products do not contain ingredients
that might be in violation of legal requirements or religious or social customs. Since Indonesia is in
a Muslim country, McDonalds "Maharaja Mac" is made with non–beef products (International
Marketing. 9th edition pg. 336).
Value pricing is used where external factors such as recession or increased competition force
companies to provide 'value' products and services to retain sales." The

LDR/300 LT
Petco Marketing Plan Phase III
Team B
MKT/421
July 24, 2013
Do. Smith
Introduction
Petco is in the process of developing a product that is about to be introduced into the market world
for the aid of pet allergies. This product is called Sneeze–Free. Petco's intention for this product is
for the potential to improve the lives of individuals who have allergies to pets. Sneeze–Free can also
make it possible for individuals who cannot own or be around pets because of allergies, have more
of an opportunity to own one. Even though this product formulation is a first of its kind there are
still similar sprays, and allergy products that will compete against Sneeze–Free. With this product
already proven to be popular in the ... Show more content on Helpwriting.net ...
One year for marketing and advertising the product, and one year for saturation. With continuous
advertising in the maturity stage, Sneeze–Free can stay in the profit column in the maturity stage
and avoid entering the decline stage. Competition for the product will likely be high at this point.
The product will rely on its branding that it has earned, and effective marketing strategies to stay
competitive. Petco may consider introducing another product that could partner with Sneeze–Free to
be more effective. This could rejuvenate the sales and interest in Sneeze–Free from the consumers.
The key to success for surviving through the sales decline stage of the product life cycle for Sneeze–
Free will be the loyal base of consumers that the product adopts in earlier stages. During this stage,
there could be enough competition that Sneeze–Free will be one of several products that consumers
can choose from. The product will have earned a good name and brand for itself, but the
promotions, price, and placement can help it be successful through this last stage of the product life
cycle.
Positioning and Differentiation Strategies The pet supply retailer Petco has developed Sneeze–Free
as a convenient alternative to expensive medication and time consuming pet shampoos. Because
Petco being unknown as a manufacturer, creating a product with differentiated value for the
customer will be challenging. Competing with other manufacturers with pet allergy control products

Marketing Iphone
Q1: Apple faced with two main pricing decisions for its range of iPhones. The first one is a
skimming price decision and the second one is a penetration pricing decision. 1. Skimming price
decision
When Apple first launched the new iPhone 3GS, it made a skimming price decision which means it
aims to sell to the top of the market and focuses on maximizing profits in short term so it could
recover the research and development costs. 2. Penetration pricing decision
As the iPhones have moved through their product life cycle (from the introduction to the growth or
maturity stage) Apple adopted a penetration pricing strategy which means selling products at very
low price to attract more customers. The rationale behind this decision was ... Show more content on
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2. Target costing one type of the demand– based pricing.
Apple could first use market research such as consumer surveys to identify the customers'
requirements of the quality and features of the product and their perception of a 'fair' price before the
product is designed.
3. Trial pricing
Apple could price the new iPhone at a low price for a limited period of time to attract customers.
This strategy can help the company to get customer acceptance at the initial period and then bring
profits by increasing the price.
Q4: As far as I am concerned, I would recommend skimming price and trial pricing strategy to
Apple during its introduction stage of its product life cycle. When Apple moves into the growth or
maturity stage of life cycle, I would recommend the penetration pricing strategy.
In terms of a skimming price decision if Apple doesn't know much about the customer demand for
its new product it would be useful. The reason is that it is safer to start with a high price, which can
be reduced if customers initially refuse to purchase. In this case, as Apple's senior vice–president
said the new iPhone 3GS has some unique competitive advantages in the phone market such as the
wide range of applications and faster load time. These benefits make many customers feel they must
have it no matter what the costs, that is to say, during the introductory stage of the new product, the
demand is price

My Product 's Value Proposition
Sales My product's value proposition is due to several advantages my product offers. First off, my
product is unique. There is nothing else like it. Six months after using the highlighter, the color fades
by using a certain chemical in the ink and it leaves the book looking untouched. This is great for
college students whose courses are normally only a semester long. This leaves the textbooks
reusable and resalable. My product is great for college students because renting textbooks is the
most common way students get them. With my product, students do not have to worry about ruining
their textbooks and can still study everything they need to with the help of this efficient highlighter.
The cost of my product would be reasonable for college students as well, most likely ranging from
$3.00–$4.00, similar to my competitor, Sharpie; although, Sharpie's pricing can range a little more
on the high side for office supplies. My product; however, offers a feature that my competitor's does
not, which is the color fading in six months. My product and my competitor's product offer some
similar value proposition, but not nearly the same. Both of our products are offered at reasonable
prices and serve the same purpose, to make information pop out so the user remembers whatever he
or she highlighted. My competitor does have an advantage over my product in which their brand
name is already well known to the public and is known to be trustworthy. Although my product is
new and lacks this

Pricing Strategy ...
There are many ways in which the price of a product can be determined. The following are the
foremost strategies that businesses are likely to use.
Contents
1 Competition–based pricing
2 Cost–plus pricing
3 Creaming or skimming
4 Limit pricing
5 Loss leader
6 Market–oriented pricing
7 Penetration pricing
8 Price discrimination
9 Premium pricing
10 Predatory pricing
11 Contribution margin–based pricing
12 Psychological pricing
13 Dynamic pricing
14 Price leadership
15 Target pricing
16 Absorption pricing
17 Marginal–cost pricing
18 References
[edit] Competition–based pricing
Setting the price based upon prices of the similar competitor products.
Competitive pricing is based on three types of ... Show more content on Helpwriting.net ...
The idea of selling at a loss may appear to be in the public interest and therefore not often
challenged. Only when the leader pushes up prices, it then becomes suspicious. Loss leadership can
be similar to predatory pricing or cross subsidisation; both seen as anticompetitive practices.
[edit] Market–oriented pricing
Setting a price based upon analysis and research compiled from the targeted market. Also with the
cost price.

[edit] Penetration pricing
Main article: penetration pricing
The price is deliberately set at low level to gain customer 's interest and establishing a foot–hold in
the market.[2]
[edit] Price discrimination
Main article: price discrimination
Setting a different price for the same product in different segments to the market. For example, this
can be for different ages or for different opening times, such as cinema tickets. Market orientated
pricing is also a very simple form of pricing used by very new businesses. What it involves is,
setting the price of your product/service according to research conducted on your target market.
[edit] Premium pricing
Main article: Premium pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order
to encourage favorable perceptions among buyers, based solely on the price. The practice is
intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive
items enjoy

Essay Marketing Pricing Strategy
Pricing Strategy
Today's highly competitive business world forces companies to create different tactics and relatively
rely on multiple pricing strategies to conduct business.
As is known, pricing is one of the most important steps for business plan which needs good
research, calculations and formulations. There are different pricing strategies to put into effect due to
the market and product conditions, such as premium pricing, penetration pricing, economy pricing,
price skimming(Voice Marketing, 2012). These four pricing strategies are main pricing policies.
They form the bases for the exercise. However there are other important approaches to pricing.
These pricing strategies are: Psychological pricing, product line ... Show more content on
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Price skimming also is not suitable with Optima's services. Optima's pricing strategy is Premium
pricing
The definition of Premium pricing strategy is, using a high price where there is uniqueness about the
product or service. This approach is used where a substantial competitive advantage exists. Such
high prices are charge for luxuries, free delivery–pick– up service, service quality, special chemical
free products and prestigious presentation.
It is an example for "Price as a cue to quality" (Iacobucci, 2010, p. 112).When Optima's customers
experience the convenience of the service; they will gladly accept the higher prices. Related to
Optima's service and product quality, company implemented premium pricing with attractive
promotion offers to support the higher price policy and make the prices more acceptable. This
matrix categorizes and shows the relationship between quality and pricing strategies (Marketing
Teacher). As mentioned above, because of The Optima's high end service and product quality, while
implementing premium pricing, company aims to reduce the prices slightly without effecting
negatively its "high–end image" and company exerts different promotional offers to support the
higher price policy and make the

Optical Distortion
Introduction Optical Distortion Inc. is a small new company with a patent for an innovative new
product which is a contact lens designed to impair the eyesight of chickens. The analysis in this
paper provides recommendations for ODI on their marketing and pricing strategy to launch this new
product.
Market Segmentation There is substantial evidence in the case to suggest that ODI should segment
the market based on flock size of the farms and focus their marketing and sales strategy towards
farms with more than 10,000 birds. As illustrated in Exhibit 4 of the case study, number of chicken
farms with flock size less than 10,000 has vastly shrunk between 1964 and 1969. This trend has
continued and it is estimated that between 1975 and ... Show more content on Helpwriting.net ...
Some of the advantages of an initial high pricing strategy are: 1) the high initial price does not
attract competitors from the market 2) it communicates the image of a quality product 3) can extract
the maximum revenues from the market while facing no competition from other vendors, 4) leaves
room for initial promotions or bulk discounts. By 1979 ODI would have already gained enough
market–share to effectively use economies of scale to bring down their average costs allowing them
to further lower their prices. A lower price will discourage firms from entering the market as
potential competition. There are some clear challenges facing ODI in terms of implementing the
above strategy. Higher initial prices would require ODI to hire some best–in–class sales people who
can justify the price to farmers by convincing them with the value–analysis of the product and also
meet the aggressive penetration rate targets. This might push the cost of the product (pricing floor)
further up eating into their operating margins. ODI should continue investing in research to meet
their goal of a multi–product and multi–market company in the long run.
Appendix A – ODI 's value to chicken farmers
Number of Birds 20,000 50,000 75,000 100,000
Savings from reduced cannibalization* 2160.00 5400.00 8100.00 10800.00
Trauma savings**

Pricing Strategy
Pricing Strategy and Channel Distribution
Pricing Strategy and Channel Distribution
Determine and discuss a pricing strategy (Penetration or Skimming).
The pricing strategy for Crystal Light Kicks will eventually be in line with current pricing of other
Crystal Light products as the Crystal Light brand is already in existence. Current Crystal Light
pricing is at a suggested retail price of $2.56 oz for a 1.4 oz package ($3.54) that includes 10 on the
go packets and $1.25 oz for a 3.2 oz canister which can make a 12 quart pitcher ($4.00) according to
Pea Pod by Giant supermarket (Peapod.com). The initial pricing strategy for Crystal Light Kicks
will take a penetration pricing strategy to introduce the product to assist in ... Show more content on
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The manufacturer is Crystal Light and the process will begin with them. The manufacturer is the
first step in the marketing distribution channel analysis. They are responsible for making the
product, promoting, pricing and any other financial related duties related to getting the product to
the retailer/wholesale chain. The manufacturer will also take care of the primary marketing and
advertising responsibilities to make consumers aware that the product exists through the existing
Crystal Light website, television and paper advertisements. The product is shipped directly to the
wholesale or retail chain that will display and store the products. The retail and wholesale shops will
also participate in some level of advertising for the product. Individual supermarkets and wholesale
chains such as BJ's and Costco have weekly circulars that feature certain products and Crystal Light
Kicks will be advertised in these circulars in line with the promotions available for the product. The
last step is getting the product out to the consumers. The retail and wholesale chains will stock the
marketplace with our goods and provide consumers with a means to purchase Crystal Light Kicks.
The distribution strategy is a basic strategy to provide Crystal Light Kicks to our target market
segment. Crystal Light Kicks is considered consumer package goods and will be distributed
intensively as opposed to

Marketing Pricing Strategy For A Company
A business should incorporate a good pricing strategy that is suitable to the company's current
position in the market in order to increase profit. When adopting a well set pricing strategy, the
company has a key option to stay feasible. To earn more profit, a company should avoid raising the
price of a product especially during an economic recession. This action will only raise the risk of a
company hitting a major loss in the product market because of the price factor. A product mix
pricing strategy is the strategy for setting a product's price often has to be changed when the product
is part of product mix such as product line pricing, optional product pricing, captive product pricing,
by–product pricing and product bundle pricing. Choosing which strategy to implement relies merely
on which product or service is being offered. In addition, when having decent product mix pricing
strategies that are not enough, then an enterprise would also need to properly adjust the prices to
accommodate various customer differences and situations by incorporating various price adjustment
strategies. These strategies include Penetration Pricing strategy, Bundle Pricing strategy, Premium
Pricing strategy, Product–Line Pricing strategy, Skimming Pricing strategy and more. Penetration
Pricing is opposite from price skimming, it is off the idea that a company compromises their prices
to be set low so that they may maximises share of the market as much as possible. This is usually

Penetration vs Skimming Pricing Strategy
The pricing strategy for a new product should be developed so that the desired impact on the market
is achieved while the emergence of competition is discouraged. Two basic strategies that may be
used in pricing a new product are skimming pricing and penetration pricing.
Skimming Pricing Skimming pricing is the strategy of establishing a high initial price for a product
with a view to "skimming the cream off the market" at the upper end of the demand curve. It is
accompanied by heavy expenditure on promotion. A skimming strategy may be recommended when
the nature of demand is uncertain, when a company has expended large sums of money on research
and development for a new product, when the competition is expected to develop and market a ...
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Penetration Pricing Penetration pricing is the strategy of entering the market with a low initial price
so that a greater share of the market can be captured. The penetration strategy is used when an elite
market does not exist and demand seems to be elastic over the entire demand curve, even during
early stages of product introduction. High price elasticity of demand is probably the most important
reason for adopting a penetration strategy. The penetration strategy is also used to discourage
competitors from entering the market. When competitors seem to be encroaching on a market, an
attempt is made to lure them away by means of penetration pricing, which yields lower margins. A
competitor's costs play a decisive role in this pricing strategy because a cost advantage over the
existing manufacturer might persuade another firm to enter the market, regardless of how low the
margin of the former may be. One may also turn to a penetration strategy with a view to achieving
economies of scale. Savings in production costs alone may not be an important factor in setting low
prices because, in the absence of price elasticity, it is difficult to generate sufficient sales. Finally,
before adopting penetration pricing, one must make sure that the product fits the lifestyles of the
mass market. For example, although it might not be difficult for people to accept imitation milk,
cereals made from petroleum products would probably have difficulty in becoming popular. How
low the

Glitzz: Devising a Pricing Strategy
08
Fall
Marketing Individual Assignment 5
08
Fall
Marketing Individual Assignment 5
Glitzz: Devising a Pricing Strategy
1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors
and comment on the range of prices that can be set for Glitzz.
Price is the amount of money given in exchange for the ownership or use of a good or service.
Firms, like Glitzz need to consider the amount of money that consumers are willing to give up in
exchange for their products.
In making pricing decisions, firms, like Glitzz must first consider a few factors:
Company Factors
Pricing Objectives
Pricing Objectives involve specifying the role of price in an organization's marketing and strategic
plans. These ... Show more content on Helpwriting.net ...
* Competitors' Prices
Considering only the direct substitute products (i.e. Brilliant Restorer and Connoisseurs) in the
market, the price of Brilliant Restorer was not stated. Hence, the only price that can be compared
with would be the price range of Connoisseurs, between $14.00 and $16.90.
Consumer Factors
Demand
* Availability of Substitutes
Glitzz faces direct competition of similar products from a few sellers, namely Brilliant Restorer and
Connoisseurs.

Brilliant Restorer bears the most similarities to Glitzz and both cleansers come in the form of sprays.
Connoisseurs differ in the method of application, as it comes in the form of a brush and tray.
Powervescent is not considered as a direct existing competitor in the market as its shop is yet to be
set up. In addition, it intends to sell via its future e shop, which targets a different consumer group as
Glitzz.
At the current stage, the jewelry cleaning machines also target a different consumer group, as
compared to Glitzz.
Hence, Glitzz should focus on capturing customers from Brilliant Restorer and Connoisseurs, using
them as a benchmark for price and product features.
Price Elasticity of Demand (Ep)
Price Elasticity of Demand is the percentage change in quantity demanded relative to a percentage
change in price.
Ep = Percentage change in quantity demanded / Percentage change in price
However, as Glitzz is still a new

Medi-Cult
Medi–Cult, a Danish biotechnology company that developed and manufactured a cell culture media.
The innovative new media developed was for In Vitro Maturation (IVM) vs. In Vitro Fertilization
(IVF). There are considerable differences in the two media primarily in side effects and discomfort
to the patient and in the cost of hormones. Medi–Cult now encounters two decisions to deliberate,
upon the launch of IVM. First, the pricing strategy to be utilized, skimming or penetrating. Second,
the pricing design to contemplate between, multinational, regional, or global pricing. In reviewing
and analyzing the data given by the experts, it has been determined that regional pricing would be
the best for Medi–Cult. One price for the United States, ... Show more content on Helpwriting.net ...
If the pricing is too high, the volume of patients to be served may decrease, thereby, effecting
profitability and availability to all those who need it. Exhibit 4 of this case provides data from
experts in the various countries on volume and low, medium, and high pricing. The data clearly
indicates that the US market is not price sensitive and volume does not change regardless of pricing.
The skimming strategy and pricing in the US at the highest end ($2200/dose) would maximize profit
and provide a perceived prestige of the new product. Medi–Cult has a 2–3year timeframe, where it
is the pioneer of this product and there are no competitors in the market. If after 2–3 years,
competitors enter the market in the US, Medi–Cult has the option of reducing pricing without harm
as the profits have possibly covered research and development expense by that time. Since insurance
reimbursement varies across the nation and is low, this is not a key factor in making this decision. In
addition, the US may have higher shipping costs, expense in complying with FDA regulations and
the difference in currency. However, Denmark, France and the UK have varying price sensitivities,
free treatments and insurance reimbursement seem superior in these countries. They have more
uniform currency with EU. There are 3 scenarios to consider: Pricing such that there is maximum
profit in each country, pricing such that there is maximum profit in the region with less cumbersome
pricing strategy and third global pricing which may reduce profitability in general. Choosing
regional pricing of $1167/dosage does not change the volume for the UK or Denmark and may only
slightly change volume for France. This pricing may keep competitors from entering the market
quickly as perhaps, it is not as attractive. $1167/dose is the maximizing profit level for the UK and
the least impact on

Identifying The Different Positions Strategies
7Q–7. what is positioning? Identify the different positions strategies presented in the chapter give
examples of companies or products that illustrate each Positioning Positioning is the last stage in the
Segmentation Targeting Positioning Cycle. Once the organization for example Johnson & Johnson
decides on its target market. They then strives hard to create an image of its product in the minds of
the consumers. The marketers create a first impression of the product in the minds of consumers
through positioning. Positioning helps organizations to create a perception of the products in the
minds of target audience. Going with example of Apple them the business man or women, person on
the go, maybe someone who works in wall street or lower Manhattan while Samsung is for the
budget friendly consumer. The middle class teacher or even police officer who doesn't want to over
spend for a quality smart phone. A great example of a unsex product is.Garnier offers wide range of
merchandise for both men and women. Each of their brands has been targeted well amongst the
specific market segments. Men, women, teenagers as well as older generation. Men sunscreen
lotions, deodorant, women daily skin care products, hair care products and teenager's hair color
products Chapter 9 9Q–5. the president of XYZ Manufacturing Company of Buffalo, New York,
comes to you with a license offer from a company in Alaska. In return for sharing the company's
patents and know–how,

Advantages And Disadvantages Of Creaming
Creaming or skimming[edit]
In most skimming, goods are higher priced so that fewer sales are needed to break even. Selling a
product at a high price, sacrificing high sales to gain a high profit is therefore "skimming" the
market. Skimming is usually employed to reimburse the cost of investment of the original research
into the product: commonly used in electronic markets when a new range, such as DVD players, are
firstly dismarket at a high price. This strategy is often used to target "early adopters" of a product or
service. Early adopters generally have a relatively lower price–sensitivity – this can be attributed to:
their need for the product outweighing their need to economise; a greater understanding of the
product's value; or simply ... Show more content on Helpwriting.net ...
First–degree price discrimination
– The business charges every consumer exactly how much they are willing to pay for the product.
2. Second–degree price discrimination
– The business uses volume discounts which allows buyers to purchase a higher inventory at a
reduced price. While this benefits the high–inventory buyer, it obviously hurts the low–inventory
buyer who is forced to pay a higher price. This buyer may then be less competitive in the
downstream market.
3. Third–degree price discrimination
– This occurs when firms segment the market into high demand and low demand groups.[16]
Firm need to ensure they are aware of several factors of their business before proceeding with the
strategy of price discrimination. Firms must have control over the changes they make regarding the
price of their product by which they can gain profitability depending on the amount of sales made.
The price can be increased or decreased at any point depending on the fluctuation of the rate of
buyers and consumers. Price discrimination strategy is not feasible for all firms as there are many
consequences that the firms may face due to the action. For example: if a firm sells a product to their
customer for a cheaper price and that customer resells the product demanding a higher price from
another buyer then the chances of the firm failing to make a higher profit is predicted because they
could have sold their product at a higher rate than the re–seller and made further

Pricing Strategies : Pricing Strategy, Skimming, And Life...
There are many different types of pricing strategies that can be used; however, there are three
pricing strategies that are more commonly used with entrepreneur than the other pricing strategies.
These three pricing strategies are: penetration pricing strategy, skimming, and life–cycle pricing.
Penetration pricing strategy is best used if entrepreneurs is presenting a new product that might
make customers weary of. Penetration pricing sets the price just above the total unit cost to help the
company develop a wedge in the market that allows the company quick access to the high volume of
sales. The penetration strategy helps to discourage similar competitors from entering the market
place giving the company a sense of stability. A penetration pricing strategy works if the companies'
products or service does not costs too much to produce or serve. Skimming is another pricing
strategy that entrepreneurs can use when deciding pricing. Skimming pricing strategy is often used
when a company introduces a unique product into the market with little competition (PG 94).
Skimming pricing strategy allows the entrepreneur to set its prices higher than others because the
customers have a higher spending power and these customers are willing to pay more than other
customers. Also, this strategy is used so that an entrepreneur can retain its profit quicker than normal
because of the higher price. When entrepreneurs sets their prices higher this tells potential customers
, this higher

mkt311 tb chap13 Essay
ch13
Student:
___________________________________________________________________________
1.
Price is the cash expenditure plus taxes that consumers have to pay for a good or service. True False
2.
The key to successful pricing is to match the product with the consumer's perception of value. True
False 3.
Price is the only part of the marketing mix that does not generate costs. True False 4.
If Brandon buys hats for his store for $5 each and sells them for $15 each, he is using a keystoning
pricing strategy. True False 5.
Rarely is the lowest–price product offering the dominant brand in a given market. True False 6.
A demand curve shows the relationship between income and demand. True False ... Show more
content on Helpwriting.net ...
E. value of the consumer's time.
26.
Consumers judge the benefits the product delivers against the __________ necessary to obtain it.
A. monetary cost
B. profit C. variable cost
D. total return
E. sacrifice 27.
Dean runs a woodworking business specializing in kitchen cabinets. He knows there are other firms
with top–of–the–line machinery that make better quality cabinets, but he does well and has a
constant flow of business. Dean obviously has:
A. figured out how to produce cheap products.
B. priced his products well.
C. reduced his variable costs by investing in fixed costs.

D. avoided monopolistic competition, and is instead in a market with pure competition.
E. learned how to use status quo pricing.
28.
If firms price their products too low, it may:
A. result in lower costs.
B. create a premium pricing effect.
C. increase contribution per unit.
D. result in inelastic demand.
E. signal poor quality.
29.
Gerald has a number of customers for his lawn care service who never question his bill but expect
their lawns to be perfect. These customers do not want low prices, they want:
A. a sales orientation.
B. fixed costs.
C. cross–price discounts.
D. a target return.
E. high value.
30.
Marketers can deliver high value through high or low prices, depending on:
A. profit contribution per unit.
B. the bundle of benefits the product or service delivers.
C. monopolistic competition.
D. target return

Freemium pricing of dropbox Essay
Huang Ge
MGT401
Prof. Patton, Joseph
2/3/2015
Case 2
1. Describe Dropbox's "Freemium Pricing strategy" to get users and revenue. What was this
strategy? What did the company hope to accomplish with this strategy?
Dropbox is a company providing remote–storage over the internet, cloud storage service as well.
The "Freemium Pricing Strategy" is a popular pricing strategy which company provide client a basic
service without paying a dime and premium services were paid. Dropbox offers 2GB cloud storage
space for free and 1TB for $9.99 per month. The basic service attracts millions of customer to use
and like it. On the other hand, the major revenue is generated by paid customers which weights 60%
of total revenue.
Moreover, Drew Houston, ... Show more content on Helpwriting.net ...
As well, in long–term, Dropbox builds brand image and cultivates customer habit. With huge
potentials, Dropbox is valued at over 4 billion dollars.
2. What were the negative results or failures of this strategy, if any?
The competition of cloud storage market is very intense, which makes Dropbox profitability less
sustainable. Consumers may turned into other giant vendor such as Google, Apple and Amazon.
"Freemium Pricing" and incentivize mechanism bring some negative influence on Dropbox.
Customer prefer to get more storage with recommend to friends and their friend will do the same
thing to get free upgrade by doing the same thing. This will increase Dropbox operation cost by
purchasing more servers and maintain them.
For venture capital investor, great volatility of future revenue means high risk. The value of
Dropbox may be overestimated. Low user conversion rate, loss of customers and make people
always want use Dropbox for free will be hidden risk for Dropbox.
3. What was the strategy that Dropbox used for corporate/business customers? Describe this strategy
and its results.
Firstly, Dropbox was applying the "Freemium Pricing Strategy" to acquire basic users. According to
Drew Houston, his goal was to get individuals to use and like it so much that they, in turn, got their
employers to sign up as well. Dropbox was offering a product

Pricing Strategy and Distribution
Nature Beauty Price strategy will be the penetration theory for my product. Penetration is pricing
low to stimulate the sales, encourage trail, and trigger by word of mouth. Nature Beauty's mineral
powder foundation will not be a new product that no company has similar to. We will need to start
by gaining the trust of the consumers by word of mouth and different marketing strategies to the
targeted customers. This way once the product has some buzz and customers appreciate the products
value, we can price the mineral powder foundation at higher price do to the demand of the product.
The competing cosmetic company has a similar product that claims help the skin improve. This
company will be established in the cosmetic industry and customers ... Show more content on
Helpwriting.net ...
However, even though it's easier to start high and lower prices later down the line, depending on
sales of the products, we don't want to jump the broom on the price set. We believe that we meet the
expectation for a higher price and will strive to become a brand that can set a premium price like it
leading competitors. Nature Beauty does want to use the theory framing on the products that
compliments the mineral powder foundation. Framing is pricing higher prices and then discount to
make the consumers feel better. There will be promotions that will give consumers the chance to try
these products such lotion, facial cleanser, beauty bar soap, make–up remover wipes, and future idea
products for free or at a discounted price. But they will not always be on sale. Nature beauty will
push these products out individually starting out high then discounting them after we introduced the
new and latest product.
Legal issues and Ethical issues in pricing tactics are very slim. We are pricing competitively against
our competitors. Nature Beauty is not pricing to high and pricing to low. We believe that we are
taking a competitive approach against the leading competition. There shouldn't be any ethical issues
with the pricing either.
The Distribution Channel is a path through which goods and services flow in one direction (from
vendor to the consumer), and the payments generated by them that flow in the opposite direction

Pricing Strategy and Channel Distribution.
Pricing strategy and Channel Distribution.
Strayer University
Author Note Silp Dhanasin, Master of Business Administration, Strayer University Correspondence
concerning this article should be address to Silp Dhanasin, Master of Business Administration,
Strayer University, 500 Redland Ct#100, Owing Mills, MD 21117
Abstract
Gravity Co., Ltd is a start–up game on mobile business, and because the company intends to
establish its market share; it will be utilizing the best pricing strategy and tactics, as well as the most
practical distribution process. The pricing strategy defines what the main focus in pricing the mobile
news games offering of the company is. While the pricing tactics will allow the company to gain
market ... Show more content on Helpwriting.net ...
Predatory pricing is the strategy of pricing the product at a very low price to drive the competitors
out of business.
The Gravity understands that the violation to the laws on pricing will result to legal suits and
complications thus; it intends to follow by the law while it keeps its competitiveness. It is possible
because the company will do its best to lessen its production costs by acquiring the least amount of
third party provider, and by employing the highest quality telephony modules available in the
market, to create maximum amount of messages and game applications for its customers.
In case of prepare a marketing distribution channel analysis identifying the wholesaler, distributor,
and retailer relationships. The company will have the Internet website where the customers can
directly purchase mobile news games of Gravity company through downloading from the company
website and uploading to their mobile devices. The company will also partner with mobile services
providers as its primary channel of distribution; for instance, Apple will include our URL links in
the Internet menu of their cellphones, as an additional game option for their customers. The
company earns when the customer clicks the link and enter the company's gaming interface. The
company will also partner with internet mobile application providers to sell our mobile games in
their site, this should be made under strict contract to avoid

Marketing Strategy: Marketing Objectives Of Coconut Ketchup
B. Marketing Objectives
The marketing objectives of TEAM TOCOK are to be able to introduce a new product made out of
coconut which is abundant at our target location Barangay Tococ, San Fabian, the decided product
would be ketchup wherein we will be substituting coconut for its base. We believe that Coconut
Ketchup will be able to compete against other competitors because of its healthiness, this includes
fat loss, better brain function and various other amazing benefits, another way we can compete well
is increasing our brand awareness through active advertising via social networking sites, not only
are we able to increase awareness but we will also be able to communicate with them. To increase
the success rate of this feasibility study we will be conducting surveys to determine what the
potential consumers want and expect of the product. ... Show more content on Helpwriting.net ...
Marketing Strategy
No one strategy is best for all companies. Each company must determine what makes the most sense
give its position in the industry and its objectives. Each company must determine what makes the
most sense give its position in the industry and its objectives.
Our product's winning strategies would include: Description
1. Overall cost leadership Our company will work hard to achieve the lowest production cost and
distribution costs. We will introduce our product in the market at low price, but not to sacrifice
profit. Low costs price lower than its competitors will win large market share and eventually
competitive with the leading brands.
2. Differentiation Here our company concentrates on creating a highly differentiated product line.
Our product's main ingredient is coconut which makes is very unique with other common leading
brands in the market. Consumers would be curious to try our product.
3. Focus Here, the company focuses its effort on serving smaller market by making them available
in the locality of San Fabian, Pangasinan rather than going to a large market.
4. Customer

CVS BUSINESS PROPOSAL
Introduction In the United States, CVS is the largest pharmacy retail organization. This company
operates over 6100 retail stores and specialty stores countrywide and has employed over 170,000
workers. There is a necessity of offering a wider range of prescription medication options and
selections system–wide in a struggle for serving the consumer base of CVS Pharmacy more
consistently and effectively. The purpose of this paper is to select a more realistic good or service for
an existing industry. The paper will identify the market structure, along with elasticity of the product
and will also include the way the pricing will relate to elasticity of the product. Furthermore, the
paper will include the way the changes in the ... Show more content on Helpwriting.net ...
Rollins, Matthew Perri, 2013).
Marginal Cost & Revenue
A way to determine the quantity of profit maximization is to conclude where marginal revenue
equals marginal costs. Rather than computing the profit for all levels of sales; total revenue and total
variable costs are considered. Marginal revenues and marginal costs are considered in a similar way
like marginal profit, thus defining the amount of change for all sales' levels (Huter, 2012, p.2).
Pricing & Non–Pricing Strategies
CVS needs to think through numerous elements impacting its' business. Pricing strategies, rivals and
their current products, consumer demands and suppliers are examples of these elements. For pricing
strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing,
geographical pricing, and membership or trade pricing. For non–pricing strategies, options
comprise: enhanced service quality, longer opening hours, advertising, and extended warranties
(Kimmons, n.d.). By pricing similar products in a different way they must focus on regional
demographics because geographic pricing enables the maximization of profit. For promoting unique
or new products at provisional price drops, penetration pricing is the most effective. Finally, bundle
pricing and closeouts can be engaged when several

Pricing and Distribution
Pricing is one of the most important elements of the marketing mix as it is the only mix, which
generates a turnover for the organization; the remaining 3p's are the variable cost for the
organization. It costs to produce and design a product; it costs to distribute a product and costs to
promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply
and demand relationship (Constantinides, 2006). Pricing a product too high or too low could mean a
loss of sales for the organization. Pricing should take into account the following factors:
Fixed and variable costs
Competition
Company objectives
Proposed positioning strategies
Target group and willingness to pay
An organization can adopt a ... Show more content on Helpwriting.net ...
Reliance Communications reduced the rates of outgoing calls. All incoming calls were free.
Value added services like voice mail, call waiting, call holding, call divert, call identification and
call conferencing were charged at a premium by all the other players in the market. Reliance
Communications offered all these services free of charge. In addition all text messaging was offered
free of charge.
The pricing strategy for a new product should be developed so that the desired impact on the market
is achieved while the emergence of competition is discouraged. Two basic strategies that may be
used in pricing a new service are skimming pricing and penetration pricing.
Skimming pricing is the strategy of establishing a high initial price for a service with a view to
"skimming the cream off the market" at the upper end of the demand curve. It is accompanied by
heavy expenditure on promotion. A skimming strategy may be recommended when the nature of
demand is uncertain, when a company has expended large sums of money on research and
development for a new service, when the competition is expected to develop and market a similar
service in the near future, or when the service is so innovative that the market is expected to mature
very slowly. Under these circumstances, a skimming strategy has several advantages. At the top of
the demand curve,

Marketing Pricing Of Retail Industry Essay
1.1 Introduction
This chapter examines the background of the organization under study. It seeks to answer any
question regarding to product pricing in retail industry. It provides for the objectives and research
question and also establishes the purpose of the study revealing its significance the limitation and
the scope of the study.
1.2 Background of the Study
Pricing is the value placed on good or service by sales force to some point in time .A price placed in
the market will be higher or lower than the value perceived by potential sale force does not really
contain the customer's orientation necessary to market the product or service .Pricing is major factor
that keeps the economy activity. The employment of any or all the factor of production i.e. land
labor and capital are dependent upon the price received by each (Stin, 1998).
Product pricing is regarded as the least exiting element of the marketing mix however it is the only
element that directly relates to income and also an element which crosses over dramatically to other
element .Promotional campaigns frequently carry messages about price, sales promotions are often
based on price reduction and discount, price coveys message about the quality of the products and it
can even discount, price conveys message about the quality of the products and it can even control
the features and benefits of the products (Stin,1998).
Stin (1998) states that price also has a strategic element since it commonly determines how

Compare And Contrast The Strategies And Tactics Of...
Strategies and Tactics for Effective Pricing
Pricing strategy is not a one–size–fits–all proposition. As you define the marketing strategy for your
company, including your target market(s), competitive advantages, and overall marketing mix, the
range of appropriate pricing strategies emerges. For example, an exclusive, highly specialized
product targeted toward upscale consumers would logically be priced at a premium. However, at its
point of introduction, it may have to be priced in line with the competition until it is established as
the market leader. At the same time, mass–market products may be priced at a lower level. You
should consider multiple factors when creating your pricing strategy.
Value Pricing Strategy: One popular strategy is value pricing, which is offering "more for less" by
underscoring a product's quality, while at the same time featuring its price. Value pricing is not just
price cutting. It means finding the balance between quality and price that will give target customers
the value they seek. Value pricing began in the 1990s as a reaction to the glitzy eighties, when
marketers used high prices to pitch luxury and extravagance. Companies like Wal–Mart and Procter
& Gamble have effectively used value pricing. This strategy requires a delicate balance, to avoid
customer ... Show more content on Helpwriting.net ...
It is the simplest cost to calculate, once your complete costs are known and your desired rate of
return is established. However, it fails to take marketing vision and market conditions into
consideration. For example, the competitive environment is neglected, as is the value of the product
or service to your targeted customers. Markup pricing is a cost–plus pricing strategy in which you
apply a predetermined percentage to a product's cost to obtain its selling price. Markup pricing is
described in greater detail later in this

The Pros And Cons Of Penetration Pricing
1. Why might penetration pricing potentially negatively impact brand image and product positioning
in the long run? Given this risk, why would a marketing manager use penetration pricing? Identify a
brand (other than the examples in the chapter) that you believe is engaged in penetration pricing.
Penetration pricing may negatively impact brand image and product positioning in the long run
because it may give a brand a negative image of being cheap. The opposite effect of what was
intended may occur and even though the product can be bought for less, consumers may think the
quality is less because of that; along with that comes a decline in value proposition as well.
Companies do use penetration pricing because it allows for a strong barrier ... Show more content on
Helpwriting.net ...
Identify a brand (other than the examples in the chapter) that you believe presently resides in this
quadrant. In your opinion, why has the brand undertaken this pricing strategy? Do you believe there
are risks to the brand in remaining too long in that quadrant? Why or why not?
Keeping in tune with car brands, the Toyota brand offers high quality with an affordable price. With
the work–commute times rising, consumers need a vehicle that can make the trip with great fuel
economy and a reliable engine. Dating back to when Toyota launched its brand within the United
States, it has created several successful models that have made their way into consumer homes. Take
the Toyota Camry for example, for it is widely popular and noted for its reliability and fuel
economy.
Toyota uses a marketing strategy that works for the brand and the consumer. Contrary to American
brands which are always searching for the next best thing, Toyota uses the motto, "if it's not broken,
don't fix it". This ties in–hand with their pricing strategy effectively because the brand isn't spending
as much time from starting from stratch, but rather can focus on improving what the brand already

The Price Setting Of A Company
A spectacular product that a company might be selling can go bad if the product pricing is not done
with proper evaluation. With too high a price, the customers will run away and too low a price, the
profits will not be substantial. Price setting is a complex task that requires consideration of costs to
the budgeting of key demographics.
The process of setting a price can be described in following 6 steps:
Select the price objective (Profit Sales/Status Quo)
Determine demand
Estimate costs
Analyze competitor price mix
Select pricing method
Select final price
The first step is Examining the Objectives. It is known that marketing decisions which involves
price are driven by the objectives set by the management of the organization. The objectives can be
divided into two levels. Firstly, all the decision impacting any functional area (finance, marketing,
operations, etc.) in the organization are driven by the organizational objectives. Driven by
objectives, marketing department sets its own objectives which includes for instance ROI, ROMI,
Cash Flows, and manizing profits. Pricing decisions are used to help each department meet its
objectives. Also, price setting procedure looks into whether the decisions made are in sync with the
decisions made for the marketing decisions such as target audience, product, logistics, and
promotion. So a product from a company with a strong brand image having distinctive feature set
and targeted to high–class customers is expected to

Essay on Nestle Frozen Food Product Development and Marketing
Although NRFC believe estimation of pizza sales could base on Contadina pasta's 24% market–
penetration rate, more conservative calculation should take different ranges of penetration rate into
consideration. By choosing three possible penetration rates of 5%. 15% and 25%, the estimated
results are demonstrated in Exhibit 1. In all three scenarios, kit only concept will not make up to
company's expectation. For kit and topping concept, only if penetration rate reach to 15%, launch
decision could be supported.
1.2 Sensitivity analysis shows that pizza sale will be largely influenced by penetration rate of
Contadina pasta (Exhibit 2).
Q2 Similarities: Both launches of refrigerated pasta and pizza are aim to catch up the growing trend
... Show more content on Helpwriting.net ...
Therefore, Customers?needs of both high quality and convenience are well served. As a result,
refrigerated pizza's claimed benefit might be weaker than what refrigerated pasta could offer to
customers. In terms of pricing, although BASES research indicated that price for pasta as a factor
influencing customers?favorability was less important that other factors such as quality, it might not
be true for pizza case, because refrigerated pasta has been priced close to competing substitute while
its adding benefit of freshness has been well perceived by customers. Since take out pizza serve high
quality and convenience well, refrigerated pizza priced closely to this substitute at $7.69 for both kit
and topping might not be able to compete for existing fresh pizza market share. Moreover, its high
price premium will also reduce its attractiveness to frozen pizza buyers. Furthermore, in terms of
product development, Nestle took advantage by purchasing on–going operation, Lambert's Pasta &
Cheese, which already have the production technology and had the marketing experience in this
category. Therefore, although Nestle did not perform the test market for its pasta line, the purchase
of on–going operation reduced the risk of product launch. However, refrigerated pizza not only
faced some technical difficulty that forced Nestle

Emotional Strategies: Chatime's Theory Of Pricing Strategy
Pricing strategy can be defined as the strategy that aimed on finds the product best selling price to
accomplish overall organizational objectives (Kurtz, 2012). Pricing strategic is directly related to
product positioning. It is because the managers must consider how much the target market is willing
to pay and cover back of the product cost. Therefore, Chatime has decided to lower its prices on
milk tea to target on common people.
First of all, penetration pricing is the major determinant of the price and that is employed when the
product managers have to give most of the value to the customers and keeps a small margin.
Chatime decided use penetration pricing where set a lower price of milk tea than the eventual
market price to attract ... Show more content on Helpwriting.net ...
Therefore, Chatime using psychological pricing strategy which is set those ending with nines or
other odd numbers on all beverages to stimulate consumer demand and sometimes these are referred
to as "just below" prices as they are often "just below" an even price such as RM1.99 vs RM2.00.
For example, Chatime instead of charge RM6 for a milk tea beverage you might charge RM5.99 per
beverage. Some consumers associate the price closer to RM5 than RM6 even though it is only one
cent less and they may subconsciously be partially ignored. The theory that drives this is that lower
pricing such as this institutes greater demand than if consumers were perfectly rational.
Psychological pricing is one cause of price points to get more customers and the psychological
pricing method helps Chatime build an impression of the brand without making significant changes
to the product. Simply revising the pricing structure can make the product seem like the best on the
market compare with other competitors or elevate the Chatime's milk tea to the top of the available
options. Although the price of Chatime's milk tea is lower than competitors, customers are those
who important of quality and price attributes will buy the products too. It is because customers are
relatively insensitive to the product price. Customers willing to pay more for own

Target Penetration : Penetrating Pricing Method
Price Penetration
Penetrating pricing method is one of the most important strategies used in business organization.
The agenda of this strategy is followed by new business with low price for a new product so that it
gains a breakthrough in competitive market. The aim of the company is to attract customers by
keeping price lower than the already established competitors. It's typical in mass market product for
example chocolates bars, food stuff, household goods etc. Once the company gets stable in the
market and the demand of the product increase price eventually increases. Penetration pricing
method is good to capture new market. Though in initial stages it creates loss for the company, the
hope which remains there is the stability of ... Show more content on Helpwriting.net ...
Price Penetration Examples in Australian Market
Example 1 (Manisha Shrestha–11500407)
Let's take the Hook and Bait Strategy followed by the Oral–B to penetrate its product in the market.
Oral B Vitality Precision Clean is one of its personal hygiene products. The Oral–B Vitality
Precision Clean is a rechargeable toothbrush uses Advance Cleaning Technology to have fresh
feeling mouth and improved gum health. The price of the main product is only AUD $ 22.49 which
comes with rechargeable cleaning power, 1 power brush, & 2 packs of refill bristles but when you
have to buy only the Oral–B Vitality Precision Clean refill bristles, the pack of 4 Flexi Soft bristles
cost you about AUD $ 24.95 which is comparatively higher than the whole combo pack. Here, the
Oral B has used penetration strategy by lowering its price of product to magnetize the customer and
once they buy the product, they are bound to buy the same accessories for that product and make
money out of them.
Example 2 (Deepu Kd–11401312)
Telstra provides discounted rate for the limited period of time, for the first six month of the period
they charge lower price and install for free. Once the discounted period is over and the company
realizes that the customer has become used to its service, the price of the service increases.
Example 3 (Manjinder Kaur–11300866)
Netflix is also currently following the price penetration

Ansoff Matrix Essay
We will now analyze the corporate–level strategy of Patanjali using the Ansoff Product and Market
Growth Matrix. There are four components of Ansoff Matrix – market penetrations, market
development, product development and diversification and we will discuss each of them in detail
below.
a) Market Penetration: It focuses on expanding sales of the existing product in firms existing market.
This can be achieved by a combination of pricing strategy , sales promotion and marketing and the
objective of the firm is to be the dominant player in that market by driving out the competitors and
increasing the loyal customer base. This would make it less risky and require less market research
for the firm to expand as it can utilize its existing resources ... Show more content on
Helpwriting.net ...
This strategy requires the firm to develop products appealing to existing markets and the business
will have to develop new competencies. This strategy emphasis on research and development,
market research on customer needs and innovative ideas. This usually happens if the firm has a huge
customer base and the market for existing product is reaching saturation and thus market penetration
strategy could not be applied. Patanjali in its part focused on quality, purity and affordability and the
followers of Baba Ramdev formed its core set of customers. Patanjali started making amla
(gooseberry) juice which happened accidently. A group of farmers don't know what to do with excel
gooseberries as the price was very low and there was not much demand. At that Patanjali introduced
this new drink – 'Amla Juice' to the market which was an instant hit. The introduction of new
product was little riskier as they didn't knew how the product would be accepted by the customers,
but after the drink became hit, they introduced various varieties of juices likes Aloe Vera Juice, Hing
digestive golis and also personal care products like shikakai, sherbets and spices that Indians
otherwise shopped at gramudyog outlets. They also plan to introduce other products from baby care
to garments and from bio–fertilisers to healthy food, and also organic cotton

Marketing Strategy Recommendations For Travel Insurance
MEDIBANK TRAVEL INSURANCE
PART 2 – MARKETING STRATEGY RECOMMENDATIONS
EMMA HENTSCHEL
ID: 216152064
CONTENTS
1– BACKGROUND SUMMARY OF PART 1
2 – PRODUCTS AND SERVICES
3 –PRICING
4 – PLACE AND DISTRIBUTION
5 – PROMOTIONAL MIX 6 – CONCLUSION OF PART 1 AND PART 2 WITH IMPLICATIONS
FOR COMPANY
1 – BACKGROUND SUMMARY OF PART 1
Summary of findings from part 1 target profile customer profile positioning strategy of the company
In part 1 of this report about market analysis it was found that medibank are seeking to expand their
service of travel insurance as the market demand for the service continues to grow.According to
IBIS World(2016)Tourism has maintained a steady average of 3.5% annual growth between 2011–
2016. The overall annual industry growth for Travel insurance was 5.2% between 2010 – 20153.
IBISWorld (2016) have also predicted that this growth in the Travel Insurance Industry will settle to
an average 2.1% annual growth within the next five years, as the market grows increasingly stable,
maintaining the australian dollar remains high, natural disasters are less frequent and that low fuel
prices drive down the cost of airfares. But some of the most relevant information for forming
Medicare's marketing strategy is the statistics regarding the target demographic for Travel Insurance.
In the travel report by the Australian Bureau of Statistics 68% of the Australian departure passengers
were between the age of 20 and 60. While the statistics show that the

Pricing Objectives, Strategies & Promotional Mix of a Company
DISCUSS VARIOUS PRICING OBJECTIVES AND DESCRIBE PRICE SETTING TOOLS AND
STRATEGIES (BOTH FOR EXISTING AND NEW PRODUCTS)
Pricing is one of the major components of the marketing plan, which is a component of a full
business plan. Assigning product prices is a strategic activity. The price you assign will impact how
consumers view your product and whether they will purchase it. Price also helps differentiate your
product from those of your competitors. However, the price you assign must be in line with your
other marketing strategies and the product attributes. Whether or not you develop a formal
marketing plan, performing some of the research necessary for a marketing plan prior to
determining the pricing strategies implement is ... Show more content on Helpwriting.net ...
Status quo – seeks to keep your product prices in line with the same or similar products offered by
your competitors to avoid starting a price war or to maintain a stable level of profit generated from a
particular product.
Survival – put into place in situations where a business needs to price at a level that will just allow it
to stay in business and cover essential costs. For a short time, the goal of making a profit is set aside
for the goal of survival. Survival pricing is meant only to be used on a short–term or temporary
basis. Once the situation that initiated the survival pricing has passed, product prices are returned to
previous or more appropriate levels.
Pricing Strategies
After selecting a pricing objective you will need to determine a pricing strategy. This will assist you
when it comes time to actually price your products. As with the pricing objectives, numerous pricing
strategies are available from which to choose. Certain strategies work well with certain objectives,
so make sure you have taken your time selecting an objective.
Careful selection of a pricing objective should lead you to the appropriate strategies. If the pricing
strategy you choose seems to contradict your chosen pricing objective, then you should revisit the
questions posed in the introduction and your marketing plan. Different pricing strategies can be used
at different times to fit with changes in marketing strategies, market

Advantages Of Pricing In Marketing
nts
Introduction 1
Price in marketing 1
Pricing strategy–Cross Subsidy 1
Ethical issue in pricing–Predatory Pricing 2
Advantages of predatory pricing 3
Disadvantages of predatory pricing 4
Example in pricing 4
Summary of example 7
Conclusion 7
Reference 7
Introduction Price is all around us. You pay accommodation fee for your hostel, tuition for your
education. You pay transportation fee such as airline, railway, taxi, and bus. And the bank charges
you interest for the money you borrow, the price for parking your car at shopping mall. Your
hairdresser asks charge for cover his service. The "price" of an executive is a salary, the price of a
salesperson may be a commission, and the price of a worker is a wage. Price is the amount of money
Most importantly it leaves them with very little reaction time. So in the initial phase not much
competition is faced.
Good will among early customers
Happy at having struck a profitable deal the customers are ready to come back to the manufacturer
in future. This goodwill created also leads to further promotion of the product through "word of
mouth".
Cost efficiency
The emphasis on keeping the price low helps in controlling the cost thereby cost efficiency is
achieved.
Competitors are kept at bay
If a manufacturer adopts penetration pricing and lowers the price of his products or services he may
stop competitors from entering the market. This happens because now the competitors will have to
enter the market at lower than existing prices. This reduces their profit not to mention the risk they
face as new entrants in acquiring market share.
Channel benefit
As this technique creates a quick turnover it keeps its retailers and distributers happy.

Disadvantages of predatory pricing The customer expects the prices to remain low for a long term.
They are not ready for the subsequent rise in the price and when it happens they might switch to a
competitor's product. Thus subsequent price hike leads to loss of market share

Kodak A New Line Of Printers
Mohammad Alazzam MGMT522 Understand the firm challenge Kodak is American Technology
Company that was found in 1890s. Kodak main focus is photography and imaging product.
Recently, Kodak decided to enter the printers industry by designing a new line of printers that
produce high quality photos. Kodak also will introduce a new line of printer ink, and photo paper.
Kodak main challenge is competing against the market leader in the printing industry Hewlett
Packard (HP) which has the largest market share in the printing industry. Also, Kodak is entering the
market twenty years late than its competitor in the market who are more experience in term of the
wants and needs of the consumers. In addition, increase in the industry rivalry with HP and risk in
new product and offering would be a challenge that Kodak management has to overcome in order to
stay successful in business. Identify the problem Kodak main problem is what price strategy they
should use in order gain more maximize profit and gain market share in the printing industry. Kodak
is entering a market that's mostly controlled by HP and therefore, Kodak management should be
careful in what price strategy they should use in order to make more profit. Kodak might engage in a
price war with other competitors since they offer printers and ink cartages that's %50 cheaper than
its HP and other competitors. HP strong connection with retailer will make it harder for Kodak to get
its product in the store shelves, therefore,

Management Accounting
cco
Management Accounting Tutorial 5
15–3. List and briefly describe 4 major influences on pricing decisions
Customer Demand: the demands of customers are of paramount importance in all phases of business
operations, from the design of a product to the setting of its price. Product–design issues and pricing
considerations are interrelated, so they must be examined simultaneously. For example, for a higher
quality product; you need higher quality materials which will affect a higher cost and needs more
time and this will lead to a higher pricing on a product. Also, a manager must not price its product
out of the market price range.
Actions of Competitors: companies must keep an eye on its competitors. If its competitor reduces its
– Absorption–cost or total–cost pricing formulas provide a justifiable price that tends to be
perceived as equitable by all parties. Consumers generally understand that a company must make a
profit on its product or service in order to remain in business. Justifying a price as the total cost of
production, sales, and administrative activities, plus a reasonable profit margin, seems reasonable to
buyers.
– When a company's competitors have similar operations and cost structure, cost–plus pricing based
on full costs gives management an idea of how competitors may set prices
– Absorption–cost information is provided by a firm's cost accounting system, because it is required
for external financial reporting under generally accepted accounting principles. Since absorption–
cost information already exists, it is cost–effective to use it for pricing. The alternative would
involve preparing special product–cost data specifically for the pricing decision. In a firm with
hundreds of products, such data could be expensive to product.
15–14. What is the primary disadvantage of basing the cost–plus pricing formula on absorption
cost?
The primary disadvantage of absorption–cost or total–cost pricing formulas is that they obscure the
cost behavior pattern of the firm. Since absorption–cost and total–cost data include allocated fixed
costs, it is not clear from these data how the firm's total costs

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