pricing factors for a new company in the dog food industry.
...ea. Price line- We are going to leave the price line at the fixed amount but if we end up losing money we will have no choice but to lower it. By doing this it will hurt our integrity of our product but we want to stay in business. Price point- Show Circuit would be happy to let the local stores and retailers know our price point because then they would realize that we are a superior dog food and intern they would pass the knowledge off to the consumer by doing in house promotions. Pricing strategies- Show Circuit is going to have a fixed pricing strategy because this is the first year they will have been in this market. Since this is their first year there are lots of fixed expenses. If Show Circuit would go to flexible or variable pricing this could be very dangerous for them because they could be losing lots of income and products with in the first year. If Show Circuit does well at first we will switch to a flexible pricing strategy by offering an array of discounts to the different supermarkets. Price quality association- We are very aware that Show Circuit is very hard to find because it gets mixed up in the frozen food section. What we are depending on is our quality because this is the highest quality dog food on the major consumer market and this is why people will leave the general dog food aisle to find Show Circuit in an unusual place. Prestige pricing- Show Circuit is going after the high- end consumer of the dog food market. We are going after the high- end consumer because we know that our frozen dog food is of better quality and it is better for the dog. The add campaign that Show Circuit will be running will show and reinforce how we feel about our high quality product. Price skimming - Show Circuit will be trying to hit the high- end consumer of the dry and canned dog food market. We know that the dry food market is typically a lower end market. These people tend to buy in bulk because dry food is so cheap. So we are also aware that canned dog food is cheap but the price difference is not as much. By running ads showing that our product is overall better for your dog we would probably sway the higher end consumers in these markets. Price penetration- We are aware that there are a few other frozen dog food and high- end products on the market. This is why we are going to penetrate this market by having one of the lowest price products in this high- end market. We are hoping by showing our ads we will get through to the consumer that this product is just as good but for a cheaper price. Elasticity- The dog food industry is very elastic if there is any change in price from product to product the consumer will switch. Our goal is to ...