1 / 3

My Own Meals Case

My Own Meals Case. Determine the markup for each distribution channel: Supermarkets use “standard markup pricing” which entails adding a fixed % to each product category: staples (bread, sugar, milk) = 10-23% discretionary (snack foods, candy) = 27-47%. My Own Meals Case.

clem
Télécharger la présentation

My Own Meals Case

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. My Own Meals Case • Determine the markup for each distribution channel: • Supermarkets use “standard markup pricing” which entails adding a fixed % to each product category: • staples (bread, sugar, milk) = 10-23% • discretionary (snack foods, candy) = 27-47%

  2. My Own Meals Case • Set prices for each distribution channel (4) • Determine cost of goods sold – MOM’s COGs is higher due to the learning curve, small initial production runs and high raw material quality coupled with lower purchase volumes • Determine MOM’s COGs • Calculate MOM’s Gross Profit • What promotional activities do you recommend and what is the estimated annual promotional budget based on MOM’s pricing objectives?

  3. MOM Case Grading • Used market down approach based on competitive positioning (10%) • Used market down approach considering elasticity of demand (10%) • Recognized retail margins (20%) • Recognized distribution channel intermediaries (15%) • Set specific price(s). Stated strategy (20%) • Showed calculations for each price set (15%) • Looked at overall P&L aspects (10%)

More Related