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Solution Library
Consumer Products Pricing Decisions
Question
Your company manufactures consumer products mostly in the pet products category. You have developed a new line of rather unique bird feeders for wild birds such as cardinals, finches, woodpeckers, etc. These bird feeders will be sold through various retail stores (pet shops, discount stores, department stores, etc.) and you already have a distribution network to get the feeders to the stores. You have a number of wholesale distributors set up who will sell the feeders to the retailers. Now you need to figure out how to set the pricing for the new line of feeders….
• What kinds of policy decisions do you need to make with regard to pricing?
• What are the additional things you will have to consider in determining your prices?
• List the specific information will you need to have in order to set the proper price?
• How would you go about setting the price? Describe the step by step process (1, 2, 3 etc.) you would take in making this decision; for example “1. Check the prices similar products are currently being sold for.”
Summary
The question belongs to Corporate Strategy. The question is about consumer products set to be distributed through a network of distributors to reach stores. A proper pricing system has to be decided and the policy decisions taken to that effect have been discussed in the solution. These decisions will include the study of demographics, market conditions, etc.
Total Word Count 364
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