What Is The Recommended Price Point And Price Strategy In The New Market? (Coursework Sample)

Instructions:

Plastic Revolutions
Report Section 5: Pricing
What is the recommended price point and price strategy in the new market?

Recycled plastics are a commodity and their price is rather standard and determined by the market. However, the price still varies slightly depending on the type and quality of the plastic, term and volume of the contract, reliability of the supply, and other factors.

Furthermore, while the price point is largely limited by the current market price, the suppliers have some freedom with respect to the price structure. They can offer the product at a fixed price, or consider more creative pricing strategies, such promotional pricing, bulk pricing, loyal customer programs, coupons, financing, pre- and post- payment, and other options that may make the product more attractive to the customers even if the price point does not differ much from that of the competition. This blog and this article offer a good overview of some of the available pricing strategy options.

Conduct a research on the current price point and price structure in the industry and recommend a pricing strategy for the client. Discuss how and why this price should (or should not) differ from that charged in the home market. Provide your price recommendations in the local currency first, and the equivalent in US Dollars (for a ton of the product).

The recommendations must be rooted in the market analysis provided earlier. Make certain to cite the sources for the numbers you use in your analysis.

deliverables:
A summary of your recommendations with respect to:
· Recommended price point for one ton of the product in the new market followed by a brief explanation
· Recommended sales strategy followed by a brief explanation.

source..

Content:

PRICE POINT AND PRICING STRATEGIES FOR PLASTIC REVOLUTIONS
STUDENTâ€™S NAME
TUTORâ€™S NAME
COURSE TITLE
INSTITUTION NAME
DATE
Recommended price for one ton of the recycled plastics in the new markets
The table below shows the current market price from March to June 2016 in dollars
Scrap Value Per Ton

Month

PET Plastic

HDPE Plastic

LDPE plastic

PP plastic

Ps Plastic

Other Plastic

March 2016

$177.98

$196.10

$20.79

$7.06

$5.56

$18.74

April 2016

$181.93

$241.72

$8.70

$4.49

$5.93

$18.14

May 2016

$194.58

$278.24

$50.00

$10.83

$15.78

$10.61

June 2016

$198.76

$305.70

$0.81

$7.68

$25.88

$83.42

Recommended Price point for the new market
Scrap Value Per Ton

Month

PET Plastic

HDPE Plastic

LDPE plastic

PP plastic

Ps Plastic

Other Plastic

June 2016

$188.31

$255.44

$20.08

$7. 515

$13.20

$18.20

Basing on the current market price for the last four months, a price that includes the average for the last four months is the best price for the new market. It is a normalized price that has been verified by the already existing market making its suitability to the new market valid.
Pricing Strategies
A pricing strategy really matters. Increasing profits is always a goal and dream for every company. This could be done by adjusting the existing price strategies on the products and services we provide, being able to squeeze that extra revenue with little efforts.
Plastic revolution should adopt a price strategy that is right for the company and also suits its customers. It should use the price calculator which incorporates these five factors:
1 Price and availability of substitute products
Does the product have any substitute? If any, how are they priced?
2 Characteristics relative to competitors
The features that the company offers that competitors do not; the vice versa should apply too. Are the cus...

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What Is The Recommended Price Point And Price Strategy In The New Market? (Coursework Sample)

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