Marketing Management MKT 600 Price in Mktg Mngnt & pricing strategy.
International Marketing - Pricing strategy
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Transcript of International Marketing - Pricing strategy
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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
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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
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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
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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
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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
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Franz S.p.A
Thanks for your attention