Green

1. The Green Diaper company has just developed and launched a quickly compostable version of an existing baby diaper.  Category managers in the company have faith in this product extension and believe it can make a significant dent in this highly competitive and price sensitive market. Regional market executives from the city market, chosen for this product’s test and introduction, suggest that this price could be used in the first three months of operation. A manufacturer’s suggested retail price (MSRP) for a box of 40 baby diapers is CAN $28.50. This price is considered “sufficient”, that is, enough to cover project development related costs. Estimating a 25 percent and 30 percent margins for the wholesaler and retailers respectively, what is the maximum price that Green Diaper should set for the wholesaler? What should be the price that the former should charge to retailers selling the product to end customers?

2. From the planning process model, what type of pricing strategy and tactic should the company follow for this type of product and market circumstance? Why? Explain.

Report essay type APA 7th Edition

400 to 500 words, Focus on 2nd question more