Marketing Strategies
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Title: Marketing Strategies

Essay Details:

Subject: Business
Author: Pauline M
Date: May 6, 2014
Level: University
Grade: A
Length: 3 / 733

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. 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...

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