Problem:
Price is the only component of the marketing mix which generates returns, the other components being all associated with costs. Hence its determination is crucial for any organization.
The determination of price of a product doesn’t rest solely on the marketing manager. The views and reactions of several stakeholders should be taken in account. Price determination is therefore not a simple task, owing to the many variables which need to be considered.
Required:
Question 1: Assume you’re the marketing manager of a beverage company, UB Limited. The company is about to launch a new brand of cold drink in local market. As a marketing manager, discuss and illustrate out the steps you would take in determining the price of new product and all the factors that you will consider in the formulation of its price.
Question 2: What pricing strategies would you suggest for launching of this new cold drink?