COMM 296 Lecture Notes - Lecture 9: Brand Equity, Profit Margin, Uptodate
Document Summary
Decisions and mini-cases, new product process, pricing, strategy and plans. The following is an excerpt from a manager"s meeting for firm that produces entertainment/game consoles (like playstation, xbox, wii). They are trying to decide whether to use a price penetration or price skimming strategy in the upcoming launch of their game console. This is our price setting meeting for the launch of the new k-j game box next year. By way of background, on average our competitors have a unit cost of around . When they first launched, they sold the units to retailers at around. The retailers then sold the product to their customers at around . And, as we know, those same competitive products are now sold into retailers at just , and resold to consumers for. Personally, i support adopting a similar pricing strategy a market skimming approach at first, and then progressively lowering the price. Creative, pr interactive + marcom under one roof www. warschawski. com.
