Case Analysis - Atlantic Computer – A bundle of pricing options Introduction – Atlantic computer is the largest player in the hi-tech IT hardware industry and a major player in the server market. Based on the fast growth of the internet and with it the proliferation of corporate websites and file sharing systems‚ huge demand is predicted in the basic server segment market over the next few years. In order to make the most of this opportunity‚ Atlantic has come put with a new product called Tronn
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Atlantic Computer: A Bundle of Pricing Options * SK50911 양지호 오명은 박종도 윤원영 Summary Atlantic computer’s most important goal is to increase profitability by selling ‘Tronn with PESA’ packages to consumers who want to operate web sites or share files. Among 4 price alternatives suggested in the case‚ the price based on value-in-use pricing analysis will be charged for ‘Tronn with PESA’ package. To achieve this goal‚ the company should overcome some impediments; one is that consumers are
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1 The pricing strategy for Atlantic computer bundle‚which is Tronn server with PESA tool‚ need to be decided.there are four options available: 1.stick with company tradition by charging only for hardware and give the PESA software for free using a status-quo pricing. 2.charge a price equal to what the customer would pay for four Ontario Zink servers usingcompetition-based pricing. 3.Charge a price using cost-plus pricing. 4.charge a price based on value-in- use pricing. Status-quo-pricing:2
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FOUR PRICING OPTIONS FOR DAYTRADERJOURNAL.COM The first option followed Atlantic’s tradition of only charging customers for hardware and giving away the PESA software for free‚ assuming that each Tronn server costs $2‚000. While free software is believed to be the “industry norm‚” it puts Atlantic at a considerable disadvantage as they would not be reimbursed for the fixed cost of $2 million spent to develop their proprietary performance-enhancing software. This price‚ however‚ ensures that the
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Atlantic Computer: A Bundle of Pricing Options Richa Jagota 0773984 March 15th‚ 2010 The Atlantic Computer case is one in which we are asked to suggest a price for the Tronn servers and PESA software tool‚ specifically for the exemplary customer‚ DayTraderJournal.com. In order to make any decisions we must remember that any strategy we use shows the added benefits of the software‚ is easy to explain‚ and is a competitive pricing strategy. The first decision that needed to be made
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Atlantic Computer Case Introduction: Jason Jowers‚ who had recently been hired by the computer manufacturer‚ Atlantic Computer‚ needed to devise a pricing plan for the company’s newest products: The Atlantic Bundle. This bundle contained the Tronn server and its corresponding software‚ the PESA. After an initial marketing meeting with a few key players‚ Jowers had input from the head of the server division (Matzer)‚ the director of the division’s R&D team (Jones)‚ and the director of new product
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1. What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle? Atlantic Computers ahs been a major competitor in the server market for nearly 30 years. The products are considered top of the line‚ having high quality and reliability. Their brand equity is an important factor to the success of the bundle. Success of the new product launch is in the hands of the server and PESA being sold as a bundle. It is the perception of the consumer‚ however‚ that software tools are usually
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com/different-types-pricing-strategy-4688.html Different Types of Pricing Strategy Pricing is one of the four elements of the marketing mix‚ along with product‚ place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies‚ depending on their own unique marketing goals and objectives. Premium Pricing Premium pricing strategy establishes a price
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Pricing Strategy Steps in Setting Price: Following are the steps in setting price for a product: 1. Selecting the pricing objectives; 2. Determining the consumers’ demand; 3. estimating costs; 4. Analysing the competitors’ costs‚ prices and offers; 5. Selecting a pricing method; and 6. Selecting the final price. 1. Selecting the pricing objectives: Before selecting a suitable price for a product‚ the marketer is needed to review the company’s objectives. The more clearer the company’s
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discount battle and promising the cost of more staples will soon drop. In this article we can see what the Coles use the marketing concepts of customer wants‚ pricing‚ and satisfaction to the market. Coles’s latest product is more price cuts planned in the next few weeks. It is shown that‚ Coles are using market –penetration pricing strategies‚ setting a low price for a new product in the next few weeks to attract a large number of buyers and a large market share (Kotler et al‚ 2010 p7). Furthermore
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