Manufactures'suggested Retail Price

Allstar’s Pharmaceutical division has a multi-symptom cold OTC medication (Allround) that is competing against nine brands from four competitors. The intent of this exercise is to evaluate Allround’s current position in the market, by analyzing its strengths, weaknesses, opportunities, and threats. There is also a proposed 10 year goal plan and strategy to establish Allstar as the industry leader of the OTC cold remedy market, while maintaining long term sustaining profitability.

Allstar must monitor the economic conditions when deciding the appropriate budget allocations to advertising, sales force, promotion, and discounts. Inflation is a major influential factor that can affect total pricing and the costs of goods sold, which will affect the company’s bottom line. In

Cost-plus pricing puts many distributors in a difficult position. Unless distributors manufacture the medical supplies they sell, they have difficulty offering competitive prices to customers while continuing to make reasonable profit margins. Applying only the cost-plus pricing method forces distributors to absorb the costs associated with holding, managing, and delivering inventory, regardless of the variations in weight, size or handling difficulties among different products. This is in addition to

By early 1988, Augustine Medical executives were actively engaged in finalizing and marketing the program for the patient warming system named Bair Hugger Patient Warming System. The principal question yet to be resolved was how to price this system. Several considerations are required in terms of organizational objectives, demand for the product, customer value perception, buyer price sensitivity, the price of competitive offering, and direct variable costs. The company has two alternatives to price this system, either the skimming pricing strategy or the penetration pricing strategy.

Assumptions: 1. As per the case, unit cost for producing each bottle of acetaminophen-based tablets (including Tylenol and Datril) is 60 cents 2. The trade cost for Approach 1 was assumed to be $1.69 in order for the pricing scenario to be perfectly equal to that of Tylenol (i.e. unit cost, trade cost, and ultimately selling price to end customers). 3. For simplicity, advertising is the only fixed

After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new

Pricing must be decided for Metabical that captures the accurately forecasted demand of the target market. Because of heavy competition such as Alli , it is important to create a package that can be priced accurately to drive up sales and consistency of a 12 week drug.

Printup must also develop a pricing model to align with the packaging and the price expectations of the target market. Since this is the first prescription drug for overweight people, reference prices are compared to many "non-exact" substitutes that will factor into the price sensitivity of the market. Additionally, unlike other drugs in CPS ' portfolio, it 's unlikely that

4)      What different factors does Printup use to identify an appropriate price for a package of Metabical?  What

We recommend CSP (Ex 6 –Features) to use skimming pricing strategy and thus we suggest pricing the Metabical at $150 for 1 months supply, with this price Metabical will be able to achieve their objective to enter $ 3.74 billion market for weight control products in the United states and more than 5% ROI within 5 years. For ROI refer (Ex-8(a)(b)(c)(d)) and for pricing and Economic Value Analysis (Ex 7). This recommendation is based on the economic value comparison against other competitors such as Alli and OTC Orlistat. In addition to selling a monthly supply of Metabical for $150, we recommend selling a value pack consisting of 3 months supply – One complete 12 week course for

When innovations are made, companies sometimes struggle with pricing. The innovations may or may not meet the consumers desires. Medi-cult developed In Vitro Maturation (IVM) technique of making women pregnant. However, the success rate is low. Furthermore, the women are reluctant to repeat the process once the first trial fails. It is also expensive. A major threat to Medi-Cult is the stiff competition by other pharmaceutical companies. Good pricing criteria should be adopted to compete effectively while improving on meeting consumers’ demands.

Personal sales then become a determining factor in the growth stage of the product life cycle as competitors battled for middleman support. Personal sale emphasis occurred when a managed care plan has a sale force offering its products to large employers. The pricing decision in the growth stage depends on the initial price rate and the ability of the company to widen its product line. Several impediments can arise when a company decides to raise the price of a product after the introductory offering but most HCOs raised their prices after reviewing the utilization rate. But such an increase can lead to a substantial change in the product quality and can influence buyer’s dissatisfaction. The distribution component of the marketing mix becomes the focus of the marketing strategy in solidifying the loyalty of the middleman.

Lowering price as Datril did in the test markets resulted in it capturing almost half of the acetaminophen market. Furthermore, margin per unit revenue (see Exhibit 2) at a retail price of $1.85 and a trade price of $1.05 was still positive, with the introductory retailers deal at $0.70 - cost-plus price. This strategy involved an advertising costing $6 million over 6 months. If Tylenol matched Datril’s price apart from the price war, the advertising campaign would be moot and if changed, require additional expense.

In week 12, sales of Rocket Soup had drastically increased to 16,113 due to the excessive discount on their product. Rocket Soup had launched a promotion with feature and display and charged for 0.02, which is over 97.5% discount on their average price. Although the sales had drastically increased, it is not possible to argue whether this excessive demand was from the promotion or low pricing.

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).