Dog-Gone Stylin' Marketing Plan - Assignment Example

Marketing Plan Lecturer: During the pricing strategy formulation of the marketing plan there are key important things that must be considered. First and foremost the cost of production of the product and operational cost should be put into perspective in the pricing strategy. This will include both the variable and fixed cost in pet therapy. Environmental factors also play a role in the pricing strategy. This includes both the legal aspect as well as the competition; not putting prices too low which will lead to price wars.

Putting the prices too high without regard to price regulations is also a risk worth avoiding. The pricing objective of Dog-Gone Stylin’ is quality leadership, with aim of targeting a niche of people who can be able to afford high prices for specialized pet therapy. Value-based pricing method will also be considered this is because Dog-Gone Stylin’ will seek to offer the customers services far superior than what the competitors will be offering. The fixed cost is $500 dollars monthly which include costs for gas for the Van and products needed for the grooming of the petsPreliminary prices include;- $60, $70, $80, $90 and $100 per pet therapy.

the formula BEQ = Fixed costs / (Average price per unit – average cost per unit) is usedBEQ= Break Even QuotientWith $60 eight pets must be groomed to break even$70 sevens pets to be groomed to break even$80 six pets must be groomed to break even$90 six pets to be groomed to break even$100 five pets need to be groomed monthly to break evenSince the pet therapy only targets selected small group of individuals looking specialized pet therapy the price per pet will be $100 for therapyReferenceFriedman, L. (2002). Go To Market Strategy: Advanced Techniques and Tools for Selling More Products to More Customers More Profitably.

Oxford: Butterworth-Heinemann