New Production Introduction Bayer Schering Pharma AG, economics homework help

User Generated

qvin_fabjsynxr

Economics

Description

Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the original medicine, meant to relieve colds and flu.

The company has recently introduced a new and improved Alka-Seltzer Plus, as described in this TV ad.

The ad shows that Alka-Seltzer Plus can fight congestion, unlike NyQuil.

Explain how Alka-Seltzer Plus has been quality and price-positioned in an existing market. In your opinion, has Bayer positioned their product appropriately in the market for cold and flu symptoms relief products? Would you advise Bayer to use a skimming or a penetration pricing strategy? Explain your reasoning.

How do you think Proctor and Gamble, the company who produces Vicks NyQuil, would respond to the ad?

Guided Response: 
In 300 words or more, please, provide your response to the above discussion question. If Bayer is currently making normal profits on most of the products in its product line, but is making pure profits on its new Alka-Seltzer Plus with decongestant, what should Bayer do to increase its profits? Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Running head: NEW PRODUCTION INTRODUCTION

New Production Introduction
Institution Affiliation
Date

1

NEW PRODUCTION INTRODUCTION

2

Alka-Seltzer Plus has been positioned as a product with the best quality than any other
that exists in the market. For this reason, the company has strategically enticed the consumers to
buy this particular product given that they already have a similar product in the market. This
way, the price they ha...


Anonymous
Goes above and beyond expectations!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags