27-08-2013, 02:14 PM
PRICING OF AN INNOVATIVE PRODUCT
AN INNOVATIVE PRODUCT.pptx (Size: 83.71 KB / Downloads: 19)
SALIENT FEATURES
‘Cool Cream Private Limited’ is known as the manufacturer of the finest icecream in the country.
Introduction of new innovative product Adrak Icecream specially for sore throats.
General Manager & the R&D team wanted the price to be cost+100% profit, reason being the product will soon be copied and the company will lose its monopoly.
PROBLEMS
Pricing of the product
To convince the managers of different departments of the company.
Promotion strategy.
Acceptance of the product by the target consumers.
It will be copied by other players soon.
Maintaining the reputation of the company.
ASSUMPTIONS
Constant Price of the product throughout the country.
Acceptable by people, especially those with sore throats and old age group.
RECOMMENDED SOLUTION
Rapid Skimming i.e. High Price & High Promotion.
High Price
Cost:
Material & Manufacturing cost
Cost incurred in R&D
Promotion Cost
Storage Cost
Since the company will not be able to maintain its monopoly for long in the market
High Promotion
New product in the market
To achieve maximum sales before new competitors enter the market