Flahavans
* Pricing: - Internal Factors
The price of a product is sum of the values values exchanged for the use of a product. Historically people bargained for the exchange of goods or services. Today the seller sets one price for the good or service. Flahavan’s, in this case are no different.
The Internal factors Flahavan’s must face when setting the price for their goods, such as ‘Flahavan's Crunchy Oats Raisins & Sultanas’, are;
Marketing Objectives
Flahavan’s must identify what their objectives are in the market. They must determine whether they are aiming for survival, profit maximisation, market-share leadership or product quality leadership. I believe it is clear that Flahavan’s is a leader in the market, a viewpoint also shared by Sorcha Corcoran of Marketing Age magazine. ‘In the Irish market, the company’s marketing strategy has been based around leadership’ (Corcoran, 2010).
Flahavan’s product pricing mirrors the market-share leadership objective. They set their prices relatively low as possible because they believe that they will enjoy maximised profits by having the largest market share.
Marketing Mix Strategy
Flahavan’s marketers must consider the total market mix when setting the price for their goods. At Flahavan’s they take into account the product design, distribution and promotion decisions to form a consistent and effective marketing programme.
Costs
The cost of producing ‘Flahavan's Crunchy Oats Raisins & Sultanas’, and all its other products are made up of different factors. Fixed costs are the costs that do not change with production or sales level. An example of such a cost would be depreciation of machinery. Variable costs, such as wages and energy costs must also be accounted for when setting the price for each of their products at Flahavan’s. If it costs the company more than competitors to produce and sell a product they company will have to sell it at a higher price or produce less, both scenarios putting it at a competitive
The price of a product is sum of the values values exchanged for the use of a product. Historically people bargained for the exchange of goods or services. Today the seller sets one price for the good or service. Flahavan’s, in this case are no different.
The Internal factors Flahavan’s must face when setting the price for their goods, such as ‘Flahavan's Crunchy Oats Raisins & Sultanas’, are;
Marketing Objectives
Flahavan’s must identify what their objectives are in the market. They must determine whether they are aiming for survival, profit maximisation, market-share leadership or product quality leadership. I believe it is clear that Flahavan’s is a leader in the market, a viewpoint also shared by Sorcha Corcoran of Marketing Age magazine. ‘In the Irish market, the company’s marketing strategy has been based around leadership’ (Corcoran, 2010).
Flahavan’s product pricing mirrors the market-share leadership objective. They set their prices relatively low as possible because they believe that they will enjoy maximised profits by having the largest market share.
Marketing Mix Strategy
Flahavan’s marketers must consider the total market mix when setting the price for their goods. At Flahavan’s they take into account the product design, distribution and promotion decisions to form a consistent and effective marketing programme.
Costs
The cost of producing ‘Flahavan's Crunchy Oats Raisins & Sultanas’, and all its other products are made up of different factors. Fixed costs are the costs that do not change with production or sales level. An example of such a cost would be depreciation of machinery. Variable costs, such as wages and energy costs must also be accounted for when setting the price for each of their products at Flahavan’s. If it costs the company more than competitors to produce and sell a product they company will have to sell it at a higher price or produce less, both scenarios putting it at a competitive