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As long as people have stomach aches, companies will sell remedies. Acid+All is banking that America will continue its love affair with bad food and has made an interesting move into the antacid market. The tiny pills come packaged in a tin priced at $3.89, which clearly sets the product apart from competitors like Rolaids, Tums, and others. The gambit of staking out a position as a prestige product is high. Watch the video to see what issues helped forge the $3.89 unit price and if the company has been successful at this price point.
Questions
1. How do the product, place, and promotion elements of Acid+All's marketing mix influence the pricing strategy the company has chosen?
2. Would you expect demand for Acid+All to be elastic? Why or why not?
3. What role do the product life cycle, competition, and perceptions of quality play in Acid+All's suggested retail price?
4. Would you buy Acid+All for the $3.89 retail price? Why or why not?
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