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Topic in Instruction - Essay Example

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Cowgirl Chocolates Answer 1 Based on the information about retail and wholesale prices of cowgirl chocolate that is mentioned in case study the merits of following pricing method can be revealed. Cost-based Pricing The cowgirl chocolate may cut down the cost of product packaging and advertisings…
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Topic in Instruction
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Download file to see previous pages In order to do this kind of advertising practices cowgirl has to link their company website to the mentioned search engines. The behavior of consumer is changing rapidly in this modern era of globalization. After the Second World War due to globalization the attraction of people is changing towards the advanced technology. Moreover by the website advertising strategy company can target a mass number of customers. This strategy will lower the advertising cost of the products of cowgirl chocolate as the company has to invest lees in this total page of commercial than the print media marketing (Ferrell and Hartline, 2010, p.153). The real fact is that many customers are linked by the internet while the readers of magazines are in limited numbers. In terms of product packaging strategy, company need not look for the creativity or artistic to pack the products. The quality of food product can do the appropriate market segmentation. Cowgirl chocolate should look for the suppliers who will supply the packaging raw material at a lower price. These two aspects can increase the profitability of the organization. Demand-based Pricing The major competency of cowgirl chocolate is that they launched chocolate products with a kick of little spiciness. Moreover the strategy will help cowgirl chocolate to expand their business market by creating various products that can attract the people of both old and new generation. It has seen from the case that their specialty regarding all the food products is on the top but people tend to buy the low price chocolate products than the expensive one. Due to different pricing of different products, customer can actually go for the better priced product. The new products like sweet chocolates are being used to appeal people to buy the products. As a result people can go for the sweet chocolates than the others due to variety of price level. When a product has higher demand then it is easy to decide when and how to increase the price of the product but when a product’s demand is decreasing then it is a tough task to do the pricing of that particular product (Stretton, 1999, p.153). They can take some strategies like customer feedback which can help cowgirl chocolates to do the market segmentation and the pricing strategies. Competition-based Pricing There are very few chocolate companies who are competitor of cowgirl chocolate. Cowgirl chocolate competes with the competitors to achieve the self-space at various retail outlets. In order to discuss the merits of competition-based pricing it is very much necessary to find who the competitors of the company are and what are the competitive advantages the company has? The advantage as well as the limitation of cowgirl chocolate has the pricing strategy due to various product lines. Cowgirl chocolate is facing the major competition from the sweet chocolate producing companies. The competitive advantages of cowgirl chocolate are attractive packaging and exceptional taste of products. Answer 2 Merlyn took an attempt to place her chocolates in the retail houses and got success by this attempt. However, the problem arises when cowgirl chocolate was unable to cut down the operational cost. As per as pricing, Cowgirl chocolate may consider four pricing strategies such as Promotional Pricing, Demand-based Pricing, Premium Pricing and Price lining. Cowgirl chocolate has adopted demand based pricing strategy as per different products. They ...Download file to see next pagesRead More
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