...Product Pricing and Channels Penny Rea-Bailey and Melony Parks MKT 421 September 22, 2014 Rhonda Vroman Product Pricing and Channels McDonald’s is featuring a new McTurkey Burger. The new burger will have fewer calories for those that are wanting a healthier choice. Ground turkey is a leaner choice than beef. The idea is to keep the calorie count around 450. The target markets needs will continue to be met with a low calorie, great tasting burger at an affordable price. To ensure the success of the burger, the marketing team will stay abreast on the marketing efforts and make adjustment where needed throughout the product life cycle. Another area we will focus on for our marketing target is the well-known branding that McDonald’s uses on all their packaging. The pricing strategy is in line with other products that are sold globally as well as in line with those of our competitors. We will continue with the same channels of distribution, starting distribution to our consumers in the United States. We will also use TV, billboards, magazines, Internet, and major event sponsorship. Features of Product The McTurkey burger is designed to be a calorie smart sandwich which would be a moist turkey patty cushioned between two whole wheat buns, with the traditional condiments; lettuce, tomato, onion, and McDonald's secret sauce. In the United States currently there is more than 1/3 (34.9% or 78.9 million) obese adults (CDC, 2014). The fast food industry continues to offer...
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...Products, Pricing, and Channels Introduction The all-new Mustang is the next chapter in the life of one of the world’s most iconic cars. The 2015 Ford Mustang is loaded with innovative technologies and delivers high levels of performance and style. “The Mustang is the first car to offer four, six, and eight-cylinder engines that each produces at least 300 horsepower. With more powertrain options to choose from, there is a Mustang to fit any lifestyle. The 3.7-liter V6 and upgraded 5.0-liter V8 are joined by an all-new 2.3-liter Eco Boost engine that brings state-of-the-art technology to Mustang.” (Ford, 2014) Description & Features The Mustang’s Eco Boost engine uses direct injection, variable cam timing and turbocharging to deliver plenty of usable performance across a broad RPM range. Mustang is equipped with over 300 horsepower and 270 lb.-ft. of torque on tap from the standard 3.7-liter V6, even the most accessible Mustang delivers the performance customers expect. Drivers will appreciate smoother shifts from the updated manual gearbox while a reworked automatic transmission features new steering wheel-mounted shift paddles for drivers who want the choice between convenience and control. (Ford, 2014) There are several key design features that define the all-new Mustang, including, a lower, wider stance with a reduction in roof height, and wider rear fenders and track. The return of Mustang fastback with a sleeker profile enabled by more steeply sloped windshield...
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...Product, Pricing, and Channels Paper Davy Ferguson, Antoinette Gardner, Adrienne Howard, Nancy Rooke, Taivonti Savage MKT/421 May 12, 2015 Dr. Christopher Whitaker Product, Pricing, and Channels Paper Meeting the Needs of the Target Market Duende is an athletic apparel company focusing on the growing demand for fashionable, functional active wear. There is a large market for the products currently offered by Duende and consumers are looking for athletic apparel in new fabrics and bright colors which broadens the scope for even more products to join the Duende product line. Today, Duende offers products such as running shoes, backpacks, hats, sunglasses, socks, protective gear, fitness devices, and yoga apparel. Duende’s research and development group is constantly surveying the market to stay in touch with latest trends. Active wear is especially appealing to those who are interested in a healthier lifestyle. Duende’s offers a product line geared toward the gym-minded professional who is interested in clothing that is comfortable and also motivational. A pair of super cute leggings works for the gym and also transitions well into the after gym trip to the grocery store. Some of our customers will purchase our products to use as leisure wear. Our customers will wear our products because they feel good, look good, and make them feel good about themselves even if they do not plan to go to the gym today. Duende offers this functionality at an affordable price. ...
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...Assignment #4: Product and Pricing Strategy Maria Vetter Marketing Management – MKT 500 Dr. Stephen R. Hiatt March 6, 2010 Product and Pricing Strategy Components of the Product Strategy: Branding Important components of product strategy begin in the branding stage. Here, one should consider the following questions; why do consumers value brands? What is the cause for an organization or consumer to purchase a particular product over another product? Moreover, why are consumers willing to spend more for a particular product over another based on a brand name? The answers are simple. Consumers and organizations buy brand name products based on expectations of quality, reduced risk, and the prestige of owning the brand named product. (Winer, 2007) However, the term brand is a complex concept that is mainly due to the multidimensional components of a brand name. Additionally, the number of different branding concepts adds to the complexity of brand aspects. However, for such a complex idea, the concept branding can be minimized to a mere five categories of brands. First, is corporate brands; such as, JP Morgan. Here, the company name is simultaneously brands with meaning to consumers. Secondly, there are corporate parent brands; “These are brand names where the corporate brand is carried with...
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...Discussing the main factors affecting product pricing in the UK Although there are many factors which affect product pricing in the UK, there are three which stand out among all others; firm’s objectives, market structure and pricing strategies. Market structure and a firm’s objectives are usually linked, for example a monopolist will normally profit maximise, whilst a perfectly competitive firm will be forced to sell goods at the market price. Despite these general assumptions, the product’s position in its life-cycle and the firm’s choice of strategy also have significant power in affecting how a product is priced. The first major factor that affects the way that firms set prices in the UK is the objectives of the firm. There are many different objectives that firm’s may follow, each of which affects how firm’s will price their goods. The most commonly assumed objective of the firm is that of profit maximization i.e. producing at the price level where total profit is maximised, either where MC=MR (marginal cost = marginal revenue), or where total revenue - total cost is greatest (Figure 1). Although profit maximization is the most commonly assumed objective, it is not the focus of the majority of firms. This is highlighted by Shipley’s 1981 study of UK firms where he concluded that only 15.9%, of his sample of 728 UK firms, were true profit-maximizers (Griffiths and Wall 7). The dominant form of firms today is the public limited company (plc) which is usually run by...
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...Product, Pricing and Channels Esan Williams, Mark Jernigan, Ann Groose, Maria Fonseca, Brent Beley, Ariana Zamarripa, Bernita Miller and Tammy Housie MKT/421 June 9, 2014 Thomas O’Brien Product, Pricing and Channels In this paper, team C will discuss a gluten-free menu item at Subway and how it solves the current need in the target market. It will include strategies on how to attract the target market through correct appeal, quality, and pricing. Pricing is very important because it is something that determines how much your product is worth. There are two well-known pricing strategies, penetration and skimming. Also, important is the product lifecycle, how long will it stay on the current subway menu? In terms of packaging for the new item, will it be different? Or will it use the current packaging that is offered at the restaurant? Another topic discussed in the paper will be the channels of distribution for the new gluten-free product. Detailed Description of Subway Gluten-Free Menu Item Subway has opened more than 22,000 global locations, in the United States Subway is the largest fast-food chain and its franchises can be found worldwide in 77 countries. It became famous as the healthy choice in fast foods through the story of Jared Fogle, a Indiana University College student who claimed to have dropped 245 pounds from eating Subway sandwiches with six grams of fat or less, low-fat chips, and diet drinks. Subway continued to improve its healthy food choice...
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...report on PRICING NEW TO THE WORLD PRODUCTS: JACKET WITH TEMPERATURE CONTROL submitted in partial fulfilment of the course PRICING TERM IV (2013-2015) to INSTRUCTORS PROF. ARVIND SAHAY PROF. SANJEEV TRIPATHI ACADEMIC ASSOCIATE SHAGUFTA QURAISHI GROUP 1 ABHINAV GOEL, ADITI VERMA, ANAND K RAO, ANKUR SINHA, ARVIND JAIN, BHARAT K LAKSHMAN, SAURABH KOTHAWADE JULY 29, 2014 1. Introduction The product that we are planning to introduce into the market is not a derivative of any older product and has never been introduced in the market before. Considering the extreme weather conditions prevailing in India, we think there is a need for a jacket which will provide protection against sunburns in summer and cold in winter. The unique feature of the jacket is the SmartFabric which has been invented after years of research. The SmartFabric acts as a temperature regulator which works like an air cooling and heating system and the utility of the jacket, which is protection from extreme climate conditions, arises from this unique fabric. We want to gauge the potential of this new product in Indian market. Though the jacket has an unique value proposition, the correct pricing of the product is very important for ensuring the success of the new jacket. 2. Pricing Approach ‘jACket’ is a novelty product which doesn’t have any clear substitute in the market. The price of such products majorly depends on the utility of the unique features of the product which are...
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...PRICING OF INDUSTRIAL PRODUCT AND SERVICES Introduction “Price is the measure by which industrial customers judge the value of an offering and it strongly impacts brand selection among competing alternatives”. (Shipley and Jobber (2001, p. 301). Pricing is a process where a business firm sets the price at which it will sell its products and services in such a way that it can generate profit as well as satisfy the customer, and it may be a part of the business’s marketing plan. Price management is a very critical element in marketing and competitive strategy and a key determinant of performance. Among different pricing strategies, marketing managers can choose their preferred type. The overall objective of pricing is to increase sales and profits globally (Kigan, 2001).Global Pricing subject can be fully integrated and considered into the product design process (Kigan, 2001) As the ultimate aim of the industry is to earn profits so pricing of industrial products and services should be based on desire of the customer. A company set the price for the first time for the following items i.e. when a new item is manufactured or a new product comes from normally when an item is directed to a new distribution channel, or it is offered to a new geographic area. Companies need to decide the positions of their product in terms of their quality and price. Literature review Research shows marketing scholars have devoted only little effort to pricing theory and practice. This lack of...
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...Starbucks - Product, Pricing, and Channels MKT/421 Introduction According to Boyer (2014) Starbucks is a global organization that has the responsibility of more than 70,000 outbound deliveries a week to retail stores, distribution channels and outlets worldwide. Keeping Starbucks products flowing from suppliers to customers is a complex exercise that spans across nineteen countries. This is a review of Starbucks; product, pricing, and channels of distribution. The Product Starbucks Corporation offers two new types of drinks, with three distinct flavors, to their wide assortment of products. The new lines of drinks are Starbucks Refreshers, a refreshing twist on an old favorite. The flavor choices were carefully chosen based on the fruit flavor's popularity, as well as to add to the drinks existing taste. The first new drink in the Refreshers line is a coffee based beverage. The coffee Refresher's base is made from Starbucks' decaf Pike Place Roast. The base of this beverage's nutritional value includes: five calories, no fat, no sodium, and one gram of protein (Starbucks Corporation, 2014). To make this beverage the new Refreshers line, delicious fruit syrup is added to the coffee. Customers may choose between three flavors, Mango Passion, Acai Berry Blend, or Honey Lemon. Each fruit syrup adds one full serving of fruit to the beverage, helping customers meet their daily nutritional needs. The second drink's base is a Chai Brewed Tea. This beverage on its own offers...
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...Product, Pricing, and Channels Paper H&M online Since 2009 there has been a large decrease in offline retail sales, by 2015 Gap Inc. will be closing 189 store, Abercrombie and Fitch is planning to close 180 store and Aeropostale 175 stores (Business Insider). JCPenny’s store sales alone dropped 31.7% in store purchases (Business Insider). Where are consumers going? Online. In 2013, the top online purchases for U.S. consumers were consumer electronics, books, clothing and apparel, 63% customers prefer to purchase clothing and apparel online. Ecommerce is one of the fastest growing markets in the world. Currently the United States is the largest online retail market. Based on the statistical data, retail e-commerce back in 2012 reached 225.5 billion U.s dollars in sales and projected to grow to 434.2 billion U.S. dollars by 2017 (Known, Statistics). “Goldman Sachs predicts that in North America alone, a quarter of clothing sales will take place on the internet by 2030, up 7 percent from 2011” (NY Daily). With anticipation H&M is proposing to launch its online retail market to the United States. An online market will have a great impact, but there are several challenges facing retailers in launching an online market. Online markets have a great impact on profit margins, because of high shipping cost and the cost of returning items. “You don’t want to lose out on being the port of call for younger shoppers. So H&M should really get in there, “Isabel Cavill, Planet Retail...
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...Product, Pricing, and Channels Paper Charles Butler, April Molley, Jon Walter, and William Stewart MKT/421 Marketing April 6, 2015 Anil Agarwal Features of the Apple Watch and the Needs of Target Market This product is one of the best ideas invented since the tablets hit the market. You now have a cell phone, tablet, and your wallet all in one on your wrist. The benefits from this product will help many Americans keep better track of their health, personal information, and communication. The reminders and schedules are going to be more visible to the eyes. No need to look at your cell phone to see who is calling or sending a text both devices will be sync together. The Apple watch is created with the function that you will be able to use Apple pay to pay for purchases everywhere. One of the best features that are going to be very helpful is the fitness activity app. The Apple watch is designed to learn your daily activity and then turn that into ways to improve your physical health. It will suggest personalized all-day activity goals also provide reminders when to do them and when there has been no activity in a while. Apple Watch tracks movement, estimates calories burn, and monitors heart rate and will sync your information through the application to your Apple IPhone (Apple, 2015). So it is like having a personal trainer by your side all day to help with keeping you on the track of your goals. Some people in foreign countries or even in America...
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...Discuss the main factors affecting product pricing in the UK? The Oxford English dictionary defines price as “ a value that will purchase a definite quantity, weight, or other measure of a good or service”. Simply put, the price of an object represents the overall demand for that product at a specific time. However, every firm had a different ideology about price and they way they set price. One of these main factors that affect price is the actual objective of the firm. Traditional theory suggests that firms will charge a profit-maximizing price where price is determined when marginal cost equals marginal revenue. They operate to seek a maximum return on the investment and costs they have input. The diagram below shows how firms produce at the profit maximisation point (MC=MR) and what costs they incur (point C). It also shows that most firms that follow a profit maximizing strategy incur a profit (price is greater than cost) . Figure 1 From Wikipedia.org Figure 1 From Wikipedia.org Although profit maximization looks like the most viable business objective that a firm can adopt, the majority of firms tend not to follow it. Research done by economist Shipley in 1981 states that “of 728 firms studied only 15.9% are true profit maximizers” (Sloman, Wride (2009). Economics. 7th ed. London: Pearson Education. p7.). Baumol in 1959 and Williamson in 1963 stated that this was because managers were more focused on sales revenue since their salaries were matched with how much was...
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...Southwest Airlines Products, Pricing, & Channels Paper Southwest Airlines Product, Pricing, & Channels Pricing Strategy Southwest Airlines’ uses an everyday low price, pricing model. The airline has built a reputation of being the cheapest major airline in the space. The cultivation of this very reputation is the reason behind the use of this pricing model. Southwest Airlines’ management wants the first thought people have when booking a flight to be “Southwest is the cheapest.” However, this does not mean Southwest works to have the cheapest airfare every day. What does this mean? Occasionally a traveler will find lower airfare with another carrier but on average Southwest will beat the other major airlines. Compare this to Walmart, it is possible to find an item Walmart sells for a lower price somewhere else but not often and not without considerable effort. Most people believe it is easier and cheaper to just shop at Walmart instead of hunting around for that occasional deal elsewhere. Continuing the everyday low price model is an important tenet of Southwest Airlines. Management has used this pricing model for the entire forty-three years history of the company and will continue to do so into the future. This pricing model can only be sustained by the company keeping the cost of doing business down. Some of the methods Southwest has employed to keep their overhead costs low include long term fuel price hedging, a simpler bag check and ticketing process...
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...Discuss factors affecting product pricing in the UK. Product pricing in the UK is dependent on several factors. Market structures such as monopoly and oligopoly play a major part in setting price. Market structures can then influence the objectives and behavior within a firm (Sloman & Wride, 2009). This can lead to the use of different pricing strategies, thus having varied effects on the level of price set. Traditional theory suggests that a firms’ main objective is profit maximization. Therefore, prices will be set in line to meet this objective. A monopoly is defined as one dominant firm in the industry. In theory, a monopoly will have inelastic demand due to no available substitutes. Therefore the firm will be a “price maker”. They can use their market power to control price and raise it to a level where price is greater than marginal cost (Sloman & Wride, 2009). Average cost Marginal cost Average revenue Marginal revenue Output Price 0 Q1 P1 Average cost Marginal cost Average revenue Marginal revenue Output Price 0 Q1 P1 Source: Adapted from Sloman & Wride, 2009. Fig.1. Diagram shows that a profit maximizing monopoly has the ability to profit maximize where marginal cost equals marginal revenue, and will therefore produce at output (Q1). Hence they will charge price (P1) that consumers are willing and able to pay for Q1. At price P1, the monopolist is making excess profit (highlighted). In perfect competition firms...
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...Discuss the main factors affecting product pricing in the UK (1000 words) Two surveys on the price-setting behaviour of UK firms published by the Bank of England in 1996 and 2008 concluded that the price, the amount of money expected, required or given for a certain level of output, was most often set as a result of market conditions. The same report however found that the second largest price differential was the objective of the specific firm surveyed, and thus product pricing in the UK can be seen to be determined primarily by the objectives of its firms, which are bounded by the differing market structures under which they operate. In the UK these dominant structures are monopolistic, oligopolistic and perfectly competitive, within which there are differing degrees of price setting ability and inter-firm competition, both of which influence the individual objectives the firms choose to pursue. As witnessed in recent years with the impact of the global recession however, all markets are vulnerable to external shocks to their product pricing. The classical theory of the firm assumes that they will pursue the objective of profit maximisation. As Milton Friedman put it in his 1970 article, ‘‘There is one and only one social responsibility of business - to use its resources in activities designed to increase its profits so long as it... engages in open and free competition without deception or fraud’1. Within a profit-maximising objective, the price charged will still be...
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