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Pricing strategy needs to take into account a number of different factors. These include the costs of production, the positioning of the product, competitive pricing, and the customer's willingness to pay. Selling Chapman's ice cream to the United Arab Emirates is going to take into account some of these more than others.
With respect to cost of production, there are two factors that need to be taken into consideration. The first is the cost of production and the second is the cost of distribution. Costs of production are high. Factors include the cost of milk, which is protected in Canada and therefore higher than in many competing countries, and the high cost of Canadian labour. Since Chapman's uses premium ingredients, the conclusion is that the factor cost of production is high. The market in the UAE for specialty ice cream is relatively small, so there is no real opportunity to make up for this in volume sales, which negates consideration of a pricing near the...
The price needs to be much higher than that. The second factor is the cost of shipping to the UAE is high, because of the need for refrigerated shipping. While this is available, it adds to the product cost. Prices need to be high simply to recoup the cost of making this ice cream and getting it to market.
Competitive pricing is important. Our perceptual map shows that Chapman's occupies premium positioning over Nestle and other mainstream ice cream makers, but somewhere below the highest end ice creams on the market. That strategy might need to be revisited in the Middle East, where there are fewer competitors but also where it costs a lot more to bring the ice cream to the market.
The positioning of the product needs to be high end, relative to the other competitors. This is necessary simply because they will have to sell it at a high price. Mainstream ice creams will be made much closer to the market, and will likely have…
Pricing Strategy and Channel Distribution Pricing Strategy . Pricing Tactics Legal and Ethical Issues Related to the Pricing Tactics .… Marketing Distribution Channel Analysis Distribution Strategy Fitting Marketing Objectives & #8230 In this case, Atlantic Computers has a plethora of various pricing strategies available to use for its interesting new server. The server has a unique software component which if it is installed with the server as a package then the server becomes extremely more productive
Pricing Strategy and Distribution Pricing and Distribution Strategy Analysis The most critical series of decisions any company makes are which distribution channels and pricing strategies to rely on for each product or service they offer. Pricing is the most strategic factor in any marketing, supply chain and production series of decisions because they not only send a very clear message of market value, they also have an immediate impact on profitability (Dudick,
Pricing strategy for our new product is going to be penetration pricing. This strategy involves undercutting the competition on price in order to win market share. Undercutting does not necessary mean that the firm with follow a cost leadership strategy, but it implies that the firm will price below the prices of competing products with similar attributes. A penetration pricing strategy implies that the firm will maintain the low price
Pricing Strategies Price and cost variables are not fixed. At times, there are some fixed elements to these costs but in many instances these costs are subject to fluctuation. These fluctuations can derive from changes in buying power, changes in commodity prices and other considerations. Likewise, forces in the external environment can bring about changes in the prices the firm can charge. When uncertain variables are fixed, the company can find
Pricing Strategy and Distribution Build-to-Order Netbook Marketing Plan Pricing and Channel Distribution Strategies The two most critical aspects of any marketing strategy are the pricing and distribution strategies, as they both underscore the branding, unique value proposition and position of products. Both have an immediate and multiplicative effect on the profitability and revenue growth of a product line and long-term, to an entire business. The intent of these sections of the marketing plan
How do the sites support the positioning and pricing of the three brands? They are dramatically different, with the Monogram site being completely separate, supporting the premium positioning. The site is done to connote the premium position and the use of these appliances in custom homes. GE Profile is more mainstream and focuses on the stylish yet utilitarian aspects of their product line. The GE site itself is more focused