Price of Hawaiian Punch - Essay Example

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Price of Hawaiian Punch

Sales oriented objectives are setup when marketers plan to target Bottom of the Pyramid segment, where playing on margins is very difficult, since the disposable income is minimal. In the given situation, Hawaiian Punch has placed its product at such a price point that it has allowed companies to play on margins as well as volumes, and giving tough competition to Nestle (Buy The Case: Hawaiian Punch Lemon Berry Squeeze 2012). Markups are a major issue when it comes to distribution of products. Numeric Spread and Weighted Spread of a firm’s products depends on the distribution markup costs that a particular company faces. Retailer margins add to the costs that the company incurs. The sole purpose of every company or MNC in the market is profit maximization. In today’s highly competitive market where national and regional markets have integrated to form one common globalized arena, marketers have a tough job to come up with ideas and innovations which bring us to the idea of increasing the ‘size of pie’ strategy. Today consumers are highly aware of their needs and want about the latest technology about what suits them, who is offering what to them, and at what prices is the desired product offered. ...Show more

Summary

Price of Hawaiian Punch Name University Price of Hawaiian Punch Pricing is one of the key objectives when deciding upon the positioning of the product. As a matter of fact, if the target audience of one’s product is a value conscious one then surely pricing plays a key role in the success of the product…
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