Case 12-9 Rough Waters Ahead Smooth Sailing is a private company that operates one cruise ship. Smooth Sailing’s purchase of the cruise ship was financed with nonrecourse debt. (Nonrecourse debt is a loan that is secured by a pledge of collateral‚ in this case the cruise ship‚ but for which the borrower is not personally liable. If the borrower defaults‚ the lender can seize the collateral‚ but the lender’s recovery is limited to the collateral.) The cruise ship has its own identifiable cash flows
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Pricing Strategies The three types of pricing strategies are skimming‚ penetration‚ and competitive. Skimming pricing strategy is defined as a pricing strategy involving the use of a high price relative to competitive offerings (Boone and Kurtz‚ p641). Skimming can be used to introduce a new product slowly. This allows the distribution process to be able to keep up with the market. Sometimes called market-plus pricing‚ intentionally setting a relatively high price compared with prices
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FIN-1103: Principles of Marketing Assignment Details Dear students‚ this document will give you the detail idea about your module assignment. This assignment consist two parts i.e. one write up and a presentation. First we discuss about the write up’s outline then about the presentation. Well‚ let’s see…. The write up: As you know‚ marketing mainly deals with the value of the product. We have to add superior value to our product to capture the customer base. All the participant of the market makes
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Pricing Strategy To set a pricing strategy‚ there are number of steps taken into consideration as follows: Step 1: Our pricing objectives are to maximize market share and increase sales volume. This strategy will be used when TrackR is being launched into the market. We charge a reasonable price in order for TrackR to be accessible in the market as quickly as possible and also to encourage the interest and excitement of a product. Because of the low price‚ we are able to raise the sales volume easily
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studyLG believes in honest pricing and not being gimmicks of discounts and price reduction as lure. Their strength of marketing is consumer pool‚ good products and pricing power. * Its product designs are centred on the middle & upper class and the ads screened highlight the product features. * Its employees are totally committed to quality and innovation. They chant “TPI 50 and TDR”‚ which signifies‚ total productivity innovation and tear down re-engineering. Through this method the
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mainline is a legacy airline and competes utilizing its low price and productivity. DeltaExpress tries to build on Delta’s leading position. DeltaExpress is an integral part of Delta and centrally managed in terms of pricing‚ flight frequency and routing and all the resources are shared. It benefits from the high levels of productivity amongst flight attendants and ground crew. The relevant strategies for Delta are business level strategies (Cost leadership among Legacy airlines) and corporate level
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of their responsibilities for marketing products‚ the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion‚ product development‚ market research and other tasks that are viewed as the more interesting and exciting parts of the job. Yet pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention
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Case of the Pricing Predicament In the case of Standard Machine’s pricing predicament‚ Occidental Aerospace’s loyalty might have been established on Standard being the exclusive supplier‚ and not on Standard efficaciously exhibiting the value of their product. Whether the client is truthful or not in what is being conveyed concerning the former competitors‚ opposition to Standard Machine’s price potential is a consequence of one of four things: Standard Machine’s product is not extending very
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Banking Customer Insight Pricing Analytics 2011 Copyright © 2010 Accenture. All Rights Reserved. Document Overview Banking Customer Insight : Pricing Analytics Title Description Sponsors Developers Updated The document briefly describes the concept & methodology adopted in the field of Pricing Analytics Edwin VanderOuderaa (edwin.vanderouderaa@accenture.com) John T Mchugh (john.t.mchugh@accenture.com) Sanjay Ojha(s.ojha@accenture.com) Gaurav Goyal (gaurav.a.goyal@accenture
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Answer of Question No 1 Pricing objectives of Pampers: 1. To capture the Diaper market: Disposable diapers were used less than 5% before launching the pampers Uni if P & G. So P & G had opportunity to enter into the Brazilian market and they launched relatively cheap and high quality Uni. 2. To retain the position: Proctor and Gamble company lost their market position to the Kimberly Clark so it changed its pricing objectives to retain the market position and it broadened its product
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