USE APPLE IPHONE TO EXPLAIN THIS PROCESS

To complete this exercise, students need to understand and be able to apply knowledge of:Using Apple Iphone as the case Product,

1. General pricing approaches

2. Selecting a price (includes comparing competitive products)

3. Break-Even Point

4. Selecting retailers for a target audience

5. Retailer-specific promotion (i.e., in-store)

1. Gather this information:

1. Brand's general pricing approach. If the brand's general pricing approach cannot be determined, consider the best pricing approach for the new product.

2. Current pricing of the original product.

Identify one version or quantity of the product sold in three (3) retail stores (i.e., one 400 ml container) and record the regular price in each store.

Estimate the average market price for the product by calculating the average price across the three stores.

3. Current pricing for competitive products.

Identify three (2) potential competitive products for the new product.

Identify the price of a product quantity or format as you intend to use for the new product.

Repeat the calculations you did for the original product, with the two competitive products.

Record the price of each competitor in each of the three stores and the average price of each competitor across the three stores.

4. Identify two retailer types that sell the original product. Use the following list of retailer types as a guide.

2. Spend time organizing your thoughts and ideas.

One page (8.5x11, both sides) of written/typed notes (not photocopied) is allowed in the evaluation. Notes must include your name and student number.

Convenience Retailer Scrambled Merchandise Retailer

Department Store Specialty Retailer

Drugstore Services Retailer

E-Tailer Supermarket

Off-Price Retailer Warehouse Retailer