The id tag is packaged in a box with a window so that

Info icon This preview shows pages 2–3. Sign up to view the full content.

View Full Document Right Arrow Icon
The ID tag is packaged in a box with a window so that the consumer can see the product. Allowing the consumer to see the product will let them judge if it’s the right size or shape to place on their phone or other valuables. Inside the packaging will be a carrying case that the product will be sitting in so that once bought it will not be lost by the consumer and will stay protected until it is placed on another product. The label will provide the information on how the product works and a website so consumers can research for more information, also the packaging will have a QR code so consumers can research the product while in the retail store. Pricing 1. You’re pricing objective(s). The pricing model that ID tag should use is a customer orientated and focusing on the “no-haggle” price. Since the ID tag will be a new product on the market and there will be no direct competition at introduction the price should be geared towards customers who want to try the product. 2. Customer. A high price will cause the consumer market that the product is geared for to look for other solutions. The mobile phone market has become an alternative to mobile computers and as more features/technology is included they become more costly to the consumer. The ID tag is offering a piece of mind to the target market and finding the right price will be critical to the success of the patch. 3. Costs. The fixed cost will be set at $200,000 and the variable cost will be $3 the fixed cost should be higher because manufacturing a new product will take time and resource which will be reflected in the fixed cost but over time it will become cheaper to manufacture and profits will be rise. The three price points could be $8, $10, and $12 so the price will stay in line with pricing strategy. The contribution per unit would be $5, $7, and $9 and if divided the $200,000 by the contribution per unit it would have to sell 40,000 at $5, 28,571 at $7, and 16,667 at $9 to reach the breakeven point. 4. Competition. The competition at the introduction should be minor since the ID tag is a new product coming to market. After the launch of the patch there could be a large number of copy cat products, which is a one big area of concern. China is another area of concern because a great deal of knock off products are manufactured there cheaply and is almost impossible to stop. If competition does become a problem then the company would have to competitively price the ID tag so not to lose market shares. The $10 price point would make the most sense based on the pricing strategy. Distribution 1. Distribution tasks or functions. The distribution process of the company include transporting, warehousing, forecasting, processing orders, inventorying, production planning, selecting sites, and servicing customers. The best solution for a new company would be to use a company that specializes in the handling a distribution of a product.
Image of page 2

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern