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Price strategies - Price strategies Price objectives...

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Price strategies Price objectives · Maximize market share and obtain loyalty of distributers through cheap prices and quality product. · Target the new market segments in Hispanic market and youths 18-24. o Introduce a 10 oz bottle to target youths at a lower price than competitors o Introduce a recently modified energy drink to target adults · Enter the fountain service by selling the syrup to retail outlet channels · Our prices should be Below or at competitor’s pricing Price range/price point · 10 oz 6 pack (NEW) = $3.19 · 12 oz= $0.99 · 20 oz = $1.49 · 2 litter = $1.99 · 12 pack = $4.89 · Energy drink 18oz (Recently modified) = $2.39 · Syrup = $40.99 / 640 ounces (NEW) Factors affecting price · Product life cycle: Maturity stage o Stable stage: Our sales have flattened. There is a lot of market saturation and most potential consumers have tried the product. Future sales are governed by population growth and replacement demand o Increased advertising with new Squirt brand and line extensions · Competitor pricing (Some examples) o 6 pack of 10 oz tonic water = $3.24
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