14 Aug Q1You have developed a new line of high-end organic balsamic vinegars. Several o
Q1You have developed a new line of high-end
organic balsamic vinegars. Several of your varieties are being used in
restaurants in Chicago and have been well accepted by chefs and customers. You
have decided to launch the product in both the retail and wholesale
markets.
Determine your pricing objectives and
develop your pricing strategy. Support your decisions.
Using
the following information, apply your strategy and determine your pricing as
well as break even in units. Support your decisions.
Bottle, Label and Production (direct
material and labor)
$9.12
per 12 oz. bottle
Advertising & promotion
$218,000
Company Overhead
$354,000
Bottle, Label and Production (direct
material and labor)
$9.12 per
12 oz. bottle
Advertising & promotion
$218,000
Company Overhead
$354,000
Q2Based on your research
of distribution and channel strategy, develop a distribution strategy for your
Balsamic Vinegar company. Be sure to include: structure or level of
distribution and decisions on direct or dual distribution. Include specific
distribution channels (actual firms) in your recommendations and support your
rationale with at least 3 outside sources.You have developed a new line of high-end
organic balsamic vinegars. Several of your varieties are being used in
restaurants in Chicago and have been well accepted by chefs and customers. You
have decided to launch the product in both the retail and wholesale
markets.Determine your pricing objectives and
develop your pricing strategy. Support your decisions.Using
the following information, apply your strategy and determine your pricing as
well as break even in units. Support your decisions.Bottle, Label and Production (direct
material and labor)$9.12
per 12 oz. bottleAdvertising & promotion$218,000Company Overhead$354,000Bottle, Label and Production (direct
material and labor)$9.12 per
12 oz. bottleAdvertising & promotion$218,000Company Overhead$354,000Based on your research
of distribution and channel strategy, develop a distribution strategy for your
Balsamic Vinegar company. Be sure to include: structure or level of
distribution and decisions on direct or dual distribution. Include specific
distribution channels (actual firms) in your recommendations and support your
rationale with at least 3 outside sources.
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