Price and Channel Strategy

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ErqXvat22

Business Finance

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Purpose of Assignment

This assignment is designed to help students analyze and understand how price setting and go to market (distribution) are interrelated and affects the profitability and growth of the business. It has been designed to be a short overview on purpose: the concepts of pricing and distribution are complex and a general understanding is what should be absorbed in one week of study.

Assignment Steps

Construct a 700-word plan for setting price and a distribution model (place/distribution) in Microsoft® Word. This plan should address at least three elements (from the Price and Place/Distribution list below) of the Price and Place/Distribution section of the marketing plan.

  • Price and Place/Distribution:
    • Distribution Strategies
    • Channels, Mass, Selective, Exclusive
    • Positioning within channels
    • Dynamic/Static Pricing Strategies
    • Channel tactics (Pricing)
    • Daily pricing, promotion pricing, List pricing

Note: Charts/graphs/tables do not count toward the word count.

The plan will be a continuation of your global or multi-regional business you chose in Week 1. This will be incorporated into your overall marketing plan for Week 6.

Cite a minimum of three peer-reviewed references.

Format your assignment consistent with APA guidelines.

Unformatted Attachment Preview

Running head: RESEARCH MARKETING 1 Research Marketing William Reed MKT/571 Roberto Cordero August 21, 2018 2 RESEARCH MARKETING Part 1: Memo To: Senior Vice President (SVP) From: William Reed Date:21st August 2018 Subject: Business Growth Overview Dataset Analysis Summary Analysis In this review, I have put more insight on the summary analysis completed by our new market analyst. I have added a more detailed explanation of the significant areas of the increase and decrease in revenue or types and category of the business. I have also analyzed the trends that are evident regarding income and provided insights that will help the company formulate marketing strategies to reverse the decline or spur growth. Lastly, I have given an additional analysis that would help in building a marketing a goal or strategy. Revenue Details Checking the date numbers for the periods between January to June 2015 and January to June 2016, revenue generated during this time frame increased although at a small rate from 2015-2016. Also, the revenue recorded in the three-time frames increased with most revenue generated from the domestic sales. Domestic revenues are high and most robust, the average increase is 87 percent of the entire business revenues. Therefore, it indicates a negative trend of the international sales. There is no significant decline in the income of any customer class. However, there is a small decline in the specific clients such as delta appliance which reduced by 5.3 percent. In overall, the company has shown an average gain, but there are chances it can be more competitive and increase the profits. Ways to improve business profitability are provided later in the additional analysis. RESEARCH MARKETING Trends The summary analysis portrays that the gross profits become an issue, especially with the major customers as the figures reveal a significant decline in major customers and therefore showing a negative gross profit percent. Although the gross profit budget bottom line remains constant, a continuous negative percentage will affect the bottom line negatively. Also, international sales are declining across the board when compared to the domestic. Initially the domestic versus international sales split was 50-50 by lately the company is leaning more on the local market and their split is 90-10. The reasoning behind international sales decrease is not well explained but the analysis provides with several basics that can be provided to adjust. It's important that the decline in the international sales can be caused by multiple factors which include the political environment of the country, economic factors and so on. Additional analysis To revive the international sales, it’s recommended that the marketing department study and analyze the global market trends. This will enable the company to know the best strategies to be applied to boost the international market. Also, since the gross profits are almost equal in either market, the increase in the global sales will improve the company’s total profits. A company should set more appropriate and relevant goals which will maximize the reach of the company and increase the number of the customers. Reaching more customers means the company will add more profits and spur the competitive ability. Yours faithfully, Name 3 4 RESEARCH MARKETING Part 2 Marketing plan: Pepsi. Co History: PepsiCo is mostly known to produce food and carbonated soft beverages such as Pepsi Kona, diet Pepsi, mountain dew, Tropicana products and many more. The history of PepsiCo date since 1893, Pepsi was initially begun by Caleb Bradham as Brads Drink. Later in 1898, it changed its name to Pepsi Cola and 1961 to Pepsi. The company performed better, but in 1931 it went bankrupt. The bankruptcy was spurred by losses incurred because of fluctuating sugar costs. The Pepsi was bought by loft Candy business which dwelt on the production of foodstuffs. Pepsi began reasonably well in the market. The company has introduced various products such as Pepsi-Kona, and Pepsi One which has failed to hit the market and the immediately withdrawn. It has been facing stiff competition from the major soft drink company such as Coca-Cola (Greg, Aug 22, 2014). Company name: PepsiCo Location of Company Headquarters: Network USA Name of product or service selected: PepsiCo has produced multiple products in the drinks and foodstuffs. Some of the commonly known include products diet Pepsi, Pepsi-Cola, mountain dew, Tropicana products, Lays, Miranda, Pepsi max and so on. General Description of Company: PepsiCo has experienced various ups and downs since its inauguration in the market. It experienced gains and intensive losses especially in 1931. It has used its capital in purchasing the raw materials rendering it being bankruptcy. However, recently RESEARCH MARKETING the company has been performing relatively better although it is facing stiff competition from coca cola. PepsiCo employs 200,000 people and its annual revenue averages $ 63.525. General Description of the Products or Service Primary products produced by PepsiCo are carbonated drinks. These products have a long history in the markets. The company exclusively owns the formula for creating these PepsiCo products. The most recent products of the PepsiCo include Aquafina, Miranda. These products have proved to be competitive when compared to the previous products such as Pepsi Kona. . 5 6 RESEARCH MARKETING References Greg, T, (Aug 22, 2014). Pepsi History. Retrieved from https://www.slideshare.net/GregThain/pepsico-history-evolution-present-and-the-future
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