Cowgirl Chocolates

COWGIRL CHOCOLATE MARKET ACCEPTANCE ASSESMENT

1 . The suggested retail price and wholesale prices of Cowgirl Chocolates products are displayed in Exhibit 2 (p . 491 ) along with the product and packaging costs . Based on this information , discuss the relative merits of using a cost-based , demand-based , or competition-based pricing method

COST-BASED PRICING : This procedure , on the part of Cowgirl Chocolates could be utilized for pricing through lowering the cost of packaging and advertising as well . The Cowgirl Chocolate has already created a website ( HYPERLINK "http /www .cowgirlchocolates .com http /www .cowgirlchocolates .com ) that

could process the advertising target of the organization . All that the owners have to do is to increase the advertising influence of the website through linking their site to other search engines such as Yahoo ! and Google . This process would be much cheaper than investing in a magazine based marketing that costs so much for one whole page of commercial . Unlike magazines , the customers reached by the internet are indeed unnumbered while magazines reach only a few readers . In terms of packaging , the artistry and creativity of the packs need not be hurt , just the process of making them through looking for less-costing suppliers of materials could be taken into consideration by the entrepreneurs of the business

DEMAND-BASED PRICING : Who eats the products ? It should be accepted that not everyone wants a chocolate product that has a bit of a kick of spiciness . However , the business could well expand their market influence to creating a variety of products that are to suit everyone 's taste . Although their specialty is still on the top of the list , it is suggested that the new products such as sweet chocolates be used to allure customers to buy their chocolates and their specialty products as well . Through this , the prices could vary among the specialties and the new products . With the variety of product 's prices , the customers could have better choices and through this , the demand level as per received from customer feedbacks could be assessed as to which products ought to stay within the menu of the business . It should be remembered though that the primary products are to be considered as the focus of promotion through the process

COMPETITION BASED PRICING : This approach is considered more of a comparison-based pricing . The measurement of the competition 's pricing and its advantages from the pricing of the Cowgirl Chocolate is the main aim of this procedure . Could the price of the Cowgirl Chocolate be reduced ? Is it reasonable enough for the sake of gaining advantage from the competition ? These are the questions needed to be considered within the process

2 . What are four (4 ) options that Cowgirl Chocolates may consider as far as pricing ? What would you recommend (a ) Price lining (b ) Promotional Pricing (c ) Premium Pricing (d ) Demand-based Pricing

Suggested pricing for the business : Promotional Pricing

There is a strong impact that promotional pricing could do on the part of increasing the profit of the business in the market . Through promotional...