Why would consumer goods company provide coupon

Assignment Help Operation Management
Reference no: EM131429403

Why can Prada sell a handbag for $2,000 that costs the firm a little more to manufacture than the $200 bag sold at a department store? At the other end of the pricing spectrum, why would a consumer goods company provide a coupon that makes their new snack product all but free? We learned in the text that there are a number of pricing strategies firms can use to achieve their marketing objectives. Do they want to build market share, create a perception of exclusivity, or simply get you to try those new cookies?

Consider the product you are using for your marketing plan. How would you price it to achieve your objectives? Describe the pricing strategy you would use to introduce your product to the market, and why you selected that strategy over other options. Is your choice a long-term or short-term strategy? What advantages or disadvantages do you foresee? Suppose that sales are not meeting your objectives, what change might you make in your pricing?

By the way, that $2000 Prada bag may seem like lot of money for a simple handbag, but it is not even close to top of the pyramid. For that, check out the Tanaka designed bag sold by Hermes for a staggering $1.9 million. Why not order two?

Reference no: EM131429403

Questions Cloud

Customer waiting times : Find the range, mean and median for each of the two samples below, and then compare the two sets of results.
The desire for a previously fulfilled lower level : According to Alderfer’s ERG model, the desire for a previously fulfilled lower level need because of difficulty fulfilling an upper level need is called______.
Average xbar for a random sample : To estimate the health of the doe population, rangers use the rule that the average weight of n=50 does should be more than 60kg. If the average weight is less than 60kg, it is thought that the entire population might be undernourished. What is..
What were some of the marketing reasons : In 1985, New Coke was launched by The Coca-Cola Company. For the first time in 99 years the company changed its original formula. The product is seen as one of the epic and most embarrassing product failures of all times. What were some of the market..
Why would consumer goods company provide coupon : Why can Prada sell a handbag for $2,000 that costs the firm a little more to manufacture than the $200 bag sold at a department store? At the other end of the pricing spectrum, why would a consumer goods company provide a coupon that makes their new ..
Find the operating time of each of these thruster : for how long the main thruster E s hould be activated if the velocity of the mass center of the probe is to remain unchanged.
Probability distribution function of random variable : The probability distribution function of a random variable, X is given by f(x)=k(x2 -1) where x=2,3,4,5 Let F(x) be the c.d.f of X.
What does the fact situation in the misericordia case : What does the fact situation in the Misericordia case tell you about the hospital as a whole? The Misericordia case (Showalter pp. 221 - 222 and 233 - 237) was widely publicized at the time it was decided (1981).
What is the median lifetime : What is the median lifetime of these phones (in years)? In addition to selecting one of the multiple choice answers, describe what you did step-by-step to arrive at a solution.

Reviews

Write a Review

 

Operation Management Questions & Answers

  Opportunity costs of the online gaming project

What are opportunity costs and should they be considered in decision-making, perhaps in the decision related to pursuing online gaming? What are some of the possible opportunity costs of the online gaming project?

  Marketing communication and marketing strategy

Netflix announced its decision to restructure its business. However it was not well received by customers. Following the backlash, its CEO apologized to the customers. But it made the matter worse. If you were in charge of marketing communication and..

  Case study - chris kolbe is master of change

Chris Kolbe is a master of change. Now president of Orig-inal Penguin, Kolbe essentially runs the division for itsparent company, Perry Ellis International. Original Pen-guin was a 1950s icon - the penguin logo appeared on Mun-singwear Penguin knit s..

  Define and discuss some of the steps

Suggest other recommendations you can make to improve the latest CEO's effectiveness and drive performance results to meet stakeholder expectations.

  What is the marketing purpose of this slogan

"JUST DO IT" advertisement for Nike. What is the marketing purpose of this slogan? Is this slogan effective?

  Identify potential quality concerns in traditional areas

A large farm produces a number of vegetables for sale to the highest bidder (usually buyers who aggregate the produce from lots of small farms and sell the produce to grocery store chains). The farm is receiving complaints about the quality of its pr..

  Handling an employees termination

Assume that the termination is warranted. Managers typically hold termination meetings at The Daily Review but it is not unheard of for the HR department to conduct this meeting. Given the available information, who should conduct the meeting? What s..

  Effort to limit class sizes to reasonable level

Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeaste..

  Analyze and discuss how the internal organization influence

Analyze and discuss how the internal organization and culture at TEOCO influence its performance. Discuss how TEOCO has strategically responded to its competitive environment and internal capabilities. What strengths and weaknesses do you perceive Ja..

  Resource-based model of competitive advantage

There are two critical assumptions underpinning the resource-based model of competitive advantage. One of these is resource heterogeneity. Briefly explain what this means. Provide one example of heterogeneous resource.

  Riordan virtual organization and environmental scan paper

Decide which competitive advantages Riordan has in common with the companies researched last week, and estimate which competitive strategies Riordan could use to improve innovation and sustainability of business operations in the global market.

  What would be the amount of the additional expense

What would be the amount of the additional expense on equipment that would make productivity?

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