Title: Marketing Strategies
Essay Details
| Subject: | Business |
| Author: | Pauline M |
| Date: | May 6, 2014 |
| Level: | University |
| Grade: | A |
| Length: | 3 / 733 |
| No of views: | 0 |
| Essay rating: | good 0, average 0, bad 0 (total score: 0) |
Essay text:
Therefore to reduce the impact on end consumers, we will set only a price structure of 45 percent mark-up of the wholesale cost.
The price structure will also follow a skimming pricing strategy. As EasyTabs is the first of its kind product in the market, we do not have to set a very competitive price in its beginning...
Showed first 250 characters
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We forecast that imitations or competitors will start entering the market in 6-12 months time. And when that happens, we will then look into the market situation and bring down the pricing to a competitive range.
The estimated cost structures are as followed:
(Per month for the first year of launch, with forecasted sales of 1500 units/ month)
Total costs:
Fixed cost: $15,000
Variable Cost ($11/Unit) $16,500
$31,500
Average Cost: $31,500
1500 = $21 per unit
Wholesale price (45% mark up) = $30...
Showed next 250 characters
Total price: $10.00 |
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