Simulation Exercise Part II

br R D . the research shall be conducted to get markets perception on the product . To create awareness for the product , we shall budget for marketing activities as top ( media ) and bottom ( print ) advertising promotions (free samples , gift packs etc (Forio Corporation ,2008

Budgetary Allocation

NB at break even point Profit 0

0 TR- ( F QC

0 PQ-F-QC

F Q ( P-C

To recover costs for reducing prices for plastic case and colored , we shall capitalize on the flat metal case by increasing the price the market segment of customers

that are only concerned about performance and not price sensitive (Forio Corporation , 2008

New price 245

To make more sales that will translate to more reduce the price of plastic case a segment of highly price sensitive customers

New price 432 Strategies for 2006

Colored Case

Having gotten the approval of the target market on the quality o the product slight price increase will be credited (Forio Corporation ,2008

New price X 5 440

Flat Metal Case

To substantiate our price increase the previous year , we shall invest on R D to create a positive perception on the perceived quality of the product by out target customers

Budgetary allocation 430

Plastic Case

Maintain the price for 2005 as these segment is highly price sensitive and less concerned on performance (Forio Corporation ,2008

Strategies for year 2007

Colored Case

Retain the price of year 2006

Flat Metal case

Having improved on the quality the previous year , we shall increase piece this time round . Our target market shall definitely be willing to pay for it (Forio Corporation ,2008

Plastic Case

To deceive the target market on price reduction , we shall reduce the price by 0 .1

NEW PRICE 270

Strategies for year 2008

Colored Case

Retain the price of year 2006

Flat Metal case...