Question: i only need plan 4 solved please:) CASE STUDY 2, The Justification of the Pricing Strategy, pp. 127-128 in text. You are a fashion jewelry
i only need plan 4 solved please:)
CASE STUDY 2, The Justification of the Pricing Strategy, pp. 127-128 in text. You are a fashion jewelry buyer for a major specialty store. On November 1, one of your vendors has immediate availability for boxed jewelry pins and earrings that will enhance your holiday gifts to go assortment. The vendor has 12,000 units of boxed jewelry at a cost of $4.25 per unit if the entire quantity is purchased. If not, the cost is $7.50 per unit. To properly assess this offering, you must consider the factors that will be helpful in making the appropriate decision.
They are:
a. There are many different styles in the assortment and some have a winter theme that may not sell in the hot climate stores. b. You already have purchased 15,000 units of boxed jewelry for the gifts to go set up at a cost of $5.00 from other resources. c. This classification (boxed jewelry) has enjoyed stronger sales this season than in previous years. The healthy position of this classification is such that this offering could contribute to an unexpected sales increase for the entire department. d. An analysis of the selling reports and the on order of this category shows that the condition of the present inventory may be inadequate to cover the conservative, realistic anticipated sales for November and December.
Because of the strong sales of this classification, the buyer would like to take advantage of this offering and use a strategy in pricing this group that will generate a markup above the required departmental 62.5% to afford a successful post-Christmas clearance sale. The buyer begins to make more basic calculations and considerations that will justify the final course of action to be taken.
Plan 4. Immediately upon delivery, should the buyer integrate half of the entire amount of boxed jewelry into the regular price strategy based on the 75% usual markup, and include the balance in the December 1 ad? Explain.
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