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Zeus Textiles Ltd. Case

Zeus Textiles Ltd. Case. Agenda . Introduction. Zeus Textiles Ltd . Canadian manufacturer Business to Business Request for Proposal Aerotex. Problem.

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Zeus Textiles Ltd. Case

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  1. Zeus Textiles Ltd. Case

  2. Agenda

  3. Introduction Zeus Textiles Ltd. • Canadian manufacturer • Business to Business • Request for Proposal • Aerotex

  4. Problem Zeus Textiles needs to develop an appropriate pricing strategy to secure a market share of the high-tech textile industry for their new product, Aerotex, which allow them to sell 500 square meters a month. Their pricing strategy must appeal to industry innovators and early adopters and will allow Zeus Textiles to make a profit while meeting all cost demands.

  5. Assumptions • Assume that Zeus Textiles have the personal and facilities to produce the required product • Operation structure is innovated and cost effective • Customer will value the durability • Customers will responded positively to the new product • There is a demand for the high quality products

  6. Facts

  7. Facts

  8. Facts

  9. Research

  10. Research • Exported 3.1 billion dollars worth of textiles • Capital and technology intensive • Future of the textile industry • Multifunctional textiles • Eco-textiles • Customized textiles

  11. Competitive Analysis Tapis Corporation • Aviation Background • Positioning • Ultraleather • Competitive Intelligence

  12. S.W.O.T.

  13. Strengths

  14. Weaknesses

  15. Opportunities

  16. Threats

  17. Target Market

  18. Recommendations #1 Price Skimming: • to increase market share early on by price skimming our product at an initial price of $89.99 to attract the innovator and early adopter companies that are willing to pay for the new enhanced product External Opportunity to Exploit: Rising demand from Airlines who want cost saving innovative, interior textiles

  19. Recommendations #1 Price Skimming: Advantages: • Cover cost of the expenses • Consumer perceive higher value • As unit cost drops the volume sold increases • Earn back your R&D and development investments Disadvantages: • Less demand • Customers value does not match • Discontent to customers who buy early

  20. Recommendations #2 Market Penetration Pricing: • to set a price lower at $69.99 to boost the initial sales earning profit and develop as much market share as quickly as possible External Opportunity to Exploit:Opportunity to gain a larger share of the target market as quick as possible.

  21. Recommendations #2 Market Penetration Pricing: Advantages: • Sell more volume • It builds a wall • It attracts a larger customer base Disadvantages: • May not have the big enough capacity • A low price may not signify high quality • Firms may be willing to pay more

  22. Recommendations #3 Value based Pricing: • to emphasize the customer’s perceived value of the product through setting the price at a high value price of $79.99, to reflect the quality of Aerotex External Opportunity to Exploit: Airlines are looking for cost effective, innovative textiles that last for a long period of time.

  23. Recommendations #3 Value based Pricing: Advantages: • Price represents the life time value • Benefits far outweigh cost of acquiring the product • Specific features and better quality Disadvantages: • Alienate customers that are driven by price • Consumers value may not match the companies value • Value may not be communicated effectively

  24. Solution Value based Pricing: Advantages: • Price represents the life time value • Benefits far outweigh cost of acquiring the product • Specific features and better quality Disadvantages: • Alienate customers that are driven by price • Consumers value may not match the companies value • Value may not be communicated effectively

  25. Solution Value based Pricing: • Based on high quality and life time value • Attract new customers • Focus on benefits • Competitive price

  26. Implementation

  27. Implementation

  28. Implementation

  29. Implementation

  30. Implementation

  31. Implementation

  32. Course Concepts • Request for Proposal (RFP) • Business to Business (B2B) • Target Market • Innovators • Early Adopters • Consumer Segments • Geographic’s • Demographics • Target Market • Consumers • Profit Margin • Innovators • Early Adopters • Competitive Advantage • Competitive Intelligence • Internet in the Business to Business marketing • Greener Consumers • Competitors • Reverse engineering • Foreign currency fluctuations • Value Based Pricing • Quantity Discounts • Cash Discounts •  consumer's perceived value •  competitive advantage •  adoption of innovation • innovators • early adopters • maturity early majority •  price skimming •  market penetration pricing •  reference pricing •  value based marketing •  value based pricing

  33. References

  34. Thank You!

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