Pricing Strategy
Device a price strategy to increase market share and to increase market effiency? (100)
Currently looking at the data provided sales grew by 4.1% from 2006 to 2007 from 29.177 to 30.284 and market share did not grow from 2006 to 2007 which is 16.8% to 16.7%.
Our objective is to increase growth by 1.9% which will be 6% from 4.1% and increase market share from 16.7% to 17% which is realistic.
Our pricing strategy would be to increase price to premium and market ourselves to the higher income earners as a premium product. Franks sauces is a strong name in the market and we believe by increasing the price we can create the perception to the market that this is the better product. The current price of Franks hot sauce is 0.99 for a 5 ounce bottle and the 12 ounce is 2.9 cents. In our pricing strategy we are doing away with the larger bottle which is 23 ounce as we feel that this is a cost saver to consumers and they will now be forced to buy the smaller bottles at a higher price.to effectively market the increase in price we would suggest the company gives a sponsorship to a movie star/famous person and he be the official brand abassodor.
In terms of market share looking at the data , 76% are caucasian (White people) buy the product therefore is strong within these ethnic group. We sould like to take the other ethic groups , i.e the Hispanic and black African American groups which only shows a 12% usage about each.
Do a swot analysis on the company?
Currently looking at the data provided sales grew by 4.1% from 2006 to 2007 from 29.177 to 30.284 and market share did not grow from 2006 to 2007 which is 16.8% to 16.7%.
Our objective is to increase growth by 1.9% which will be 6% from 4.1% and increase market share from 16.7% to 17% which is realistic.
Our pricing strategy would be to increase price to premium and market ourselves to the higher income earners as a premium product. Franks sauces is a strong name in the market and we believe by increasing the price we can create the perception to the market that this is the better product. The current price of Franks hot sauce is 0.99 for a 5 ounce bottle and the 12 ounce is 2.9 cents. In our pricing strategy we are doing away with the larger bottle which is 23 ounce as we feel that this is a cost saver to consumers and they will now be forced to buy the smaller bottles at a higher price.to effectively market the increase in price we would suggest the company gives a sponsorship to a movie star/famous person and he be the official brand abassodor.
In terms of market share looking at the data , 76% are caucasian (White people) buy the product therefore is strong within these ethnic group. We sould like to take the other ethic groups , i.e the Hispanic and black African American groups which only shows a 12% usage about each.
Do a swot analysis on the company?