Co branding Breyers Oreo ice cream What are the strategic alternatives for

Co branding breyers oreo ice cream what are the

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-Co-branding- Breyers “Oreo” ice cream What are the strategic alternatives for brand development (i.e. the brand and product development matrix) Market penetration Diversification Market development Product development What is a product life cycle Introduction>growth>maturity>decline What are product life cycle strategies Introdution -gain awareness- Growth- stress differentiation-price to gain market share, more versions Maturity - Maintain brand loyalty-reminder oriented Decline - Harvesting or deletion-try to stay profitable but minimal promotion What are the internal and external factors that influence pricing decisions Internal factors – Marketing objectives Marketing mix strategy Costs Organizational consideration External factors- Nature of the market Competition Environmental factors (economy, resellers, government) cost-based pricing Setting prices based on the costs for producing, distributing, and selling the product. Ignores demand and competition
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demand elasticity The quantity demanded or supplied that responds to price changes in a greater than proportional manner markup The amount added to the cost price of goods to cover overhead and profit. margin The difference between the price at which you purchase a product and the price you sell the product through the distribution channel. Value based pricing Pricing strategy that sets price primarily based on perceived or estimated value of a product to the customer rather than according to the cost of the product or historical prices. Competition based pricing Pricing method that makes use of compeitors prices for similar products in setting the price. Focuses on information from the market rather than production costs Two different pricing strategies for new products Skimming strategy -setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay the high price Penetration strategy -setting a low price for a new product in order to attract a large number of buyers and a large market share. Segmented pricing Charging different price to different consumers according to their willingness to pay (capture maximum surplus) (Ex: student discounts at AMC movie theaters) Pricing mix pricing strategy -Product Line pricing Price steps between product line (ie. Marritott Courtyard, Marriott resorts, JW Marriott) -Optional-product pricing Pricining optional or accessory products sold with the main product ((supplemental software, printers sold with a new PC) -Captive-product pricing (razor-blade pricing) -pricing products that must be used with the main product -Services:two-part pricing strategy(fixed fee plus variable usage rate -Product bundling pricing -pricing bundles of products sold together (common in fast food industry)
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Why would companies initiate price changes and how do they respond to competitive price changes - increase profits cost inflation greater demand than can be supplied has excess capacity faces falling market share due to price competition desires to be a market share leader Respond by holding or adjusting their price based on what the competition is doing.
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