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

2. 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

3. 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

4. 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

5. 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

6. 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

7. Franz S.p.A
Thanks for your attention