Explain how alka-seltzer plus has been quality in market

Assignment Help Microeconomics
Reference no: EM131181747

Good Will in Price Bidding & New Production Introduction

Good Will in Price Bidding

Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer). How would you value the goodwill that is obtained in this way?

Guided Response:

Think about an example that pertains to you. If there is expected goodwill would you be prepared to bid lower to get a contract? Explain your reasons. In 300 words or more, please, provide your response to the above discussion question.

New Production Introduction

Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu.

The company has recently introduced a new and improved Alka-Seltzer Plus, as described in this TV ad.

The ad shows that Alka-Seltzer Plus can fight congestion, unlike NyQuil.

Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market. In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products? Would you advise Bayer to use a skimming or a penetration pricing strategy? Explain your reasoning.

How do you think Proctor and Gamble, the company who produces Vicks NyQuil, would respond to the ad?

Guided Response:

In 300 words or more, please, provide your response to the above discussion question. If Bayer is currently making normal profits on most of the products in its product line, but is making pure profits on its new Alka-Seltzer Plus with decongestant, what should Bayer do to increase its profits?

Reference no: EM131181747

Questions Cloud

Interview a management consultant : SCORE member, university director of student consulting teams, or representative of a CPA firm to discuss small business management weaknesses and the willingness or reluctance of small firms to use consultants.
Implement at least one additional game feature : Implement at least one additional game feature to the Course Project - You just need to add an additional feature which can be anything.
Destroys all duplicate claims from customers : You are in a workplace where there are many claims being lodged by customers. Your colleague finds that some customers fill in multiple forms for the same claim. He is frustrated and destroys all duplicate claims from customers. Do you feel that it i..
How serious a problem do you think climate change is : How serious a problem do you think climate change is? Compare your judgment of this based on news reports and the economic studies that have tried to evaluate the costs and benefits of climate change. How effective do you think economic analysis h..
Explain how alka-seltzer plus has been quality in market : Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market. In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products?
Diagram the organizational relationships in a small business : Report on any organizational problems that are apparent to you or that are recognized by the manager or others in the fim.
Integrated hospital-physician health care delivery system : You were recently hired as the director of corporate strategic planning for a large, integrated hospital/physician health care delivery system. You have been tasked with preparing a strategic plan for addressing the recent US health care reform regul..
Which policies effective in responding to climate change : Which policies do you think are most likely to be effective in responding to climate change? Given the political resistance to taxes, what do you think would be the best strategy for achieving reduction of greenhouse gas emissions?
Growth expected in the size of the data warehouse : Assume that the company accumulated 20TB of data that 20% per year growth expected in the size of the Data Warehouse. Recommend a solution this scenario respect to software, hardware, and network requirements.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What effects do competition between firms

What effects do competition between firms for a consumers and competition between consumers to get their hands on a given good have on the adjustment

  Analyze the structure and control systems

Analyze implementations. This portion of the case study analysis requieres that you identify and analyze the structure and control systems that the company is using to implement its business strategies.

  How much output should the firm produce to maximize profit

How much output should the firm produce to maximize profit

  Using a conventional supply-demand diagram

Presume that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the following gains and losses from such a price support: Th..

  What is the law of supply

What is the law of supply, and what are the factors that cause shifts in supply? What is the law of demand and why is it important?

  Define law of demand and supply

Suppose a medical study reveals new benefits to consuming beef, and at the same time a bumper corn crop reduces the cost of feeding cattle. The equilibrium quantity of beef will stay the same.

  What do the weights in column d look like

The Odd estimator of the population average gives each odd-numbered obser- vation a weight of 2/n. Apply this estimator in the UnivariateSample sheet. What do the weights in column D look like?

  Shredder used in a refuse-powered electrical generating plan

A currently owned shredder used in a refuse-powered electrical generating plant has a present net realizable value of $200,000 and is expected to have a market value of $10,000 after 4 years. Operating and maintenance disbursements are $100,000 per y..

  Consider the pizza market in a small college town

Consider the pizza market in a small college town with the following assumptions: - The market is in long-run equilibrium. - Each pizza shop sells 100 pizzas per week. (For ease of exposition, suppose that each shop sells only pizza and only one size..

  Why companies compete in monopolistic competitive market

Provide a two page paper and visual that explains how and why companies that compete in a monopolistic competitive market are successful. The paper must address the technical definition of monopolistic competition. A visual must show the monopolis..

  Determine how much firm is likely to spend for warehousing

When comparing performance during the first five months of 2010 with the performance during the first five months in 2009, which warehouse shows the most improvement?

  How do fixed costs play a role in your analysis

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate? How do fixed costs play a role in your an..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd