Your company is Parnaby Imports and you sell into Supermarkets and other retail outlets. You import rice
Question:
Your company is Parnaby Imports and you sell into Supermarkets and other retail outlets.
You import rice from Australia and buy in bulk. It is shipped into your warehouse and production facilities. Your company repacks the bulk product into consumer packs, on these premises.
The landed bulk rice costs you $5.00 per kg.
You repackage the rice into the following sizes 500g, 1kg and 3kg.
Your warehouse and production costs are $1.00 per kg.
The market retail price you currently compete with is $10.00 per kg.
Parnaby Imports has 2 market competitors. One is a local rice grower and the other competitor, also imports his rice, but from a different country to you. They sell the same pack sizes as yourself.
In the space below, answer the following questions:
Q5-A
Assuming your repacking costs are only $1.00 per kg, nominate 3 different "pricing option strategies" your company can use to sell your rice.
Q5-B
Show your prices under each nominated strategy option and explain why you have used these strategies.