Case Study: Wide Awake Cafe
Another method will be through establishing strategic relationships with companies that have similar demographics such as athletic clubs and local colleges. Establishing a mutually beneficial relationship will allow both organizations to develop visibility for each other.
The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Wide Awake Cafe for the first time. The coupon will be an economic incentive for the newcomer to try Wide Awake Cafe. The coupon also has the added force of a referral from a friend.
Price Strategy & Breakeven Analysis
How we price our product is important because it will have a direct effect on the success of Wide Awake Cafe. Though pricing strategy and …show more content…
Prices must be set to preserve order in the marketplace.
Cost-plus pricing -- Used mainly by manufacturers, cost-plus pricing assures that all costs, both fixed and variable, are covered and the desired profit percentage is attained.
Demand pricing -- Used by companies that sell their product through a variety of sources at differing prices based on demand.
Competitive pricing -- Used by companies that are entering a market where there is already an established price and it is difficult to differentiate one product from another.
Markup pricing -- Used mainly by retailers, markup pricing is calculated by adding your desired profit to the cost of the product. Each method listed above has its strengths and weaknesses.
Promotion Strategy
Contests are a frequently used promotional strategy. Many contests don't even require a purchase. The idea is to promote our brand Wide Awake Cafe and put our logo and name in front of the public rather than make money through a hard-sell campaign. People like to win prizes. Sponsoring contests can bring attention to our product without our company being to
The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Wide Awake Cafe for the first time. The coupon will be an economic incentive for the newcomer to try Wide Awake Cafe. The coupon also has the added force of a referral from a friend.
Price Strategy & Breakeven Analysis
How we price our product is important because it will have a direct effect on the success of Wide Awake Cafe. Though pricing strategy and …show more content…
Prices must be set to preserve order in the marketplace.
Cost-plus pricing -- Used mainly by manufacturers, cost-plus pricing assures that all costs, both fixed and variable, are covered and the desired profit percentage is attained.
Demand pricing -- Used by companies that sell their product through a variety of sources at differing prices based on demand.
Competitive pricing -- Used by companies that are entering a market where there is already an established price and it is difficult to differentiate one product from another.
Markup pricing -- Used mainly by retailers, markup pricing is calculated by adding your desired profit to the cost of the product. Each method listed above has its strengths and weaknesses.
Promotion Strategy
Contests are a frequently used promotional strategy. Many contests don't even require a purchase. The idea is to promote our brand Wide Awake Cafe and put our logo and name in front of the public rather than make money through a hard-sell campaign. People like to win prizes. Sponsoring contests can bring attention to our product without our company being to