New Production Introduction

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User Generated

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xznegva1972

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Economics

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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 (Links to an external site.)Links to an external site..

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?

Tags: business managerial economics

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Hi, kindly find attached

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New product introduction
Alka-Seltzer Plus can be described as the latest remedy for colds and flu with additional
qualities which were not initially in the original alka – seltzer. According to Bayer Schering
Pharma AG, the new product is a spin-off which has additional benefits such as the ability to
fight congestion. Alka-Seltzer Plus has been qualit...

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