1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OleMash [197]
2 years ago
15

Sterling Morrow, a fashion brand known for casual dresses, is launching a new product line: Carry Tu, a line of women’s fashion

bags. The Carry Tu line will include a satchel, an overnight bag, a laptop bag, and a card-holder keychain. The Carry Tu line will compete with Grazzi, a popular brand of bags.
The sale of women's bags has seen an uptick in recent years. Consumers are willing to spend discretionary money, if they see good value for the money.


As a junior marketing strategist, you must recommend to the marketing team the appropriate pricing strategies for each of Carry Tu's bags. The pricing strategies must allow you to make a profit while still competing successfully with Grazzi.


Required:

Determining the target market and selecting appropriate pricing strategies for each of the product items in Carry Tu's line of bags.
Business
1 answer:
Rina8888 [55]2 years ago
7 0

Answer with Explanation:

If the company desires Carry Tu product line to breakeven within first 8 months then my recommendation would be to target working class women. This is because working class women spend most of their earnings on fashion bags, clothing, shoes, satchel, makeup, overnight bags, cell phones, jewelry, etc. So if we are targeting a customer who has higher purchasing power then it is more likely that our quality product will breakeven very quickly. A working class women roughly owns 2-4 bags which means their is huge market for Carry Tu, especially in the case of working class women. Other items like overnight bags, satchel, card holder key-chains, laptop bags, etc will be adding value due to growing demand of quality products and shopping habits of working class women.

Satchel is usually used by both students and working class women, now again it will be one of the most value adding product among the Carry Tu product line.

Laptops bags are rarely used as the companies that sell their products has a laptop with bag in a package offering. So it will be less value adding item. Likewise card-holder key-chains are also rarely used by students and working class women.

Overall assessment shows that the best customer segment that the company must focus should be working class women.

<u>Pricing Strategy for Carry Tu Line:</u>

The pricing strategy of the company must be increasing sales oriented which would increase the demand of the product if the purchasing power of the customer is not much high. If the product is differentiated and quality oriented and also that the customer's purchasing power is high enough then the company must charge higher cost to reflect its brand and quality product.

The satchel is widely used by the students and working class women who work in small organizations, hence the company must follow penetration pricing strategy. This is the strategy that will help in covering the fixed cost by earning small contribution on each product. It will also increase the sales which means the total contribution will be enough to cover fixed cost of the organization. This pricing strategy is mostly followed to increase the market share and as in the case of Carry Tu, it is a new entrant in the market, hence pricing low would be helpful in developing customer relation and covering the fixed cost so that the company breakeven in first 8 months of operation.

Overnight bag and laptop bags are mostly used by the working class women who prefer differentiated and quality products. Which means that the product will be differentiated and quality product to compete with Grazzi. The company must follow Competitive pricing strategy so that the customer perceives similar value that Grazzi is offering in the market.

Card-holder key-chains are rarely purchased by working class hence it will also follow penetration pricing strategy to increase its sales and increase the total contribution earned on its sales.

The pricing strategy are based on the market condition of Carry Tu as it is a new entrant in the market and is based on Grazzi brand valued by customers.

You might be interested in
In a competitive market equilibrium, the allocation of the social surplus is such that ____________.
Leto [7]

In competitive market equilibrium, the allocation of the social surplus is such that no individual can be made better off without making someone else worse off.

The phrase "competition equilibrium" refers to an equilibrium condition when the firm's goal of maximising profits and the customers' goal of maximising utility both aspire to reach an equilibrium price as a result of freely determined prices.

According to the theory of competitive equilibrium, the firm's supply of the product is equal to the market's demand for that same amount of the product. It is a circumstance in which neither the buyer nor the seller can strengthen their bargaining position with regard to the goods being sold.

Learn more about competitive market here brainly.com/question/13961518

#SPJ4

6 0
1 year ago
In 1932, the u.s. government imposed a two-cent tax on checks written on deposits in bank accounts. this action would be expecte
Inessa05 [86]
<span>In 1932, the u.s. government imposed a two-cent tax on checks written on deposits in bank accounts. this action would be expected to increase the currency–deposit ratio and decrease the money supply. Tax are basically meant to defers the writing of checks. Hence people will be unwilling to pay tax and does not want to write check which will increase their bank balance and hence currency deposit ratio will rise and money supply will decrease in the economy.</span>
8 0
3 years ago
A person who ensures that people adhere to the definitions for the master data in their organizational units is called a(n) ____
pashok25 [27]

Answer:Data steward

Explanation:

8 0
2 years ago
The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,0
Lana71 [14]

Answer:

Net Cash Flow from Financing Activities                    $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock                                         $90,000

Purchase of treasury stock                                          $50,000

Payment of dividends to common stockholders       $10,000

==============================================================

Net Cash Flow from Financing Activities                    $150,000

Note: Sales of equipment is not included in financing activity

6 0
3 years ago
How did the new deal change the relationship between business and labor?
Hitman42 [59]
It bettered their relationship

do you have answer choices
6 0
3 years ago
Other questions:
  • If jasmine sleeps for 12 hours each night and takes two naps during the day, jasmine is most likely:
    7·1 answer
  • In one year, the Hotel by the Shore incurred $100,000 in fixed costs. Because the hotel booked 10,000 room nights, its total var
    8·1 answer
  • Suppose the manager agrees to pay each employee a​ $50 bonus if they meet a certain goal. on a typical​ saturday, the​ oil-chang
    15·1 answer
  • Negative margin is when the value of the service, good, or resource does not complete cover the cost. theoretically, by reducing
    8·1 answer
  • If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4
    13·1 answer
  • Skysong, Inc. took a physical inventory on December 31 and determined that goods costing $235,000 were on hand. Not included in
    13·1 answer
  • Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou
    11·1 answer
  • Assume that investment spending
    10·1 answer
  • For each of the following transactions, indicate whether it represents an increase in the U.S. gross domestic product (GDP), and
    11·1 answer
  • You have been asked to calculate the internal rate of return for an investment with the following cash flows, using the Excel IR
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!