Pricing

Topics: Economics, Price, Marketing Pages: 3 (463 words) Published: March 1, 2013
MBA645

MARKETING MANAGEMENT

CASE 2: CARGILL VENEZUELA

Submitted To:

Dr. John Ireland

Group:

Lian Qiu 121300063

Olessya Sokolova 121300058

Khalid AlZarouni 121300219

Tariq Badri 121300126

1) As farmers use 15kg of seed per hectare, how much profit do farmers make (per hectare) if they buy Cargill seeds? If they buy Pioneer seeds?

|Cargill seeds | |Sales per hectare |3800*0.3=1140 | |Deducted: cost of seeds |15*3.13=46.95 | |Deducted: Growing corn cost |741 | |Profit per hectare |352.05 |

|Pioneer seeds | |Sales per hectare |2800*0.3=840 | |Deducted: cost of seeds |15*2.5=37.5 | |Deducted: Growing corn cost |741 | |Profit per hectare |61.5 |

* Assuming the farmer purchases through associations and does not require paying the distributor’s margin.

So farmers can make profit of $352.05...
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