1,053,616 1,382,871 1,229,219 1,229,219 Total Sales' 5,553,434 Pricing Strategy:From our questionnaire results we found the average price a person would pay for this product is $2.83 per piece and we will retail it for $ 1.99 for a unit. We will sell this product for $1.54 to the retailers to account for their markup of 30%-35%. Comparable products in the market range from $3.99 - $5.99 per piece. Since our product is a point of purchase product keeping the price low is an essential feature for us to reach the desired sales. Large retail stores follow a concept of Odd - Even pricing. This is known to be a very effective demand increasing pricing strategy, because consumer's tend to see the product in the lower price range than it actually is. Example, if a product is sold for $49.99 instead of fifty, it is below $50. We will follow the same pricing strategy and offer a suggested retail price for $1.99 for a pack of two.Promotions PlanPromotional Objectives:The objectives for our promotion plan consist of building awareness about our product, Educating the usefulness of our product, and hopefully inducing a trial purchase. These objectives will be attained through the combination of elements in our promotional mix.Communication Strategy:As a start up company introducing a new product on the market we will use a push strategy to get the Scrape-up onto the shelves of our distribution channels. We will do this through the use of a well-trained and dedicated sales force that will call on our intermediaries and encourage them to order our product and stock it in their stores. Once our product is in the stores it will be the combination of our promotional efforts as well as the wholesalers to push the product onto the consumers. (Please refer to Figure 3-1)Figure 3- Push StrategyPromotional Mix:1. Personal SellingOur sales force will be dedicated to convince the large retailers to carry our product. They will ...
