Pricing Strategy - 2019 Atlantic Taffy Pricing Case (Essay Sample)

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Executive Summary
As the newly appointed manager of Atlantic Taffy, I will perform various calculations and generate information to support the pricing strategies of the business. In the analysis, the report starts by conducting the Price Elasticity of Demand using different price estimations. The next step will involve the calculation of the Price Elasticity of Supply to determine the number of deliveries that will be made of Salt Water Taffy Bars. In addition, various recommendations have been generated after the calculations of the Price Elasticity of Demand and Supply. Lastly, the paper is concluded by a summary of the key parts of the report.
2019 Atlantic Taffy Pricing Case
Introduction
The analysis and review of the pricing strategies of a business are essential in attempts at enhancing the financial performance of the business, especially the profitability. Different techniques have been used to provide information about the pricing and its relationship to the quantity demanded of the products including the Price Elasticity of Demand and the Price Elasticity of Supply. The Price Elasticity of Demand is a financial statistic that determines the percentage change in the quantity demand as a result of various price movements. On the other hand, the Price Elasticity of Supply is a statistic that determines the percentage change in the number of deliveries that will be made as a result of a percentage change in the price of the product (Dhingra).
Atlantic Taffy Company is a manufacturer and distributor of Salt Water Taffy Bars in boxes of 50 each to gift shops in different markets stretching from Atlantic City, New Jersey, to Mount Desert Island near Bar Harbor Maine. As the new manager of the company, I have been tasked with growing the profitability of the business. The process must involve a critical analysis of the pricing strategies and the prevailing market factors, to leverage on every emerging opportunity to grow the profits of the business (Dhingra). This report involves a critical analysis of the pricing strategies of Atlantic Taffy and recommending the best ways of enhancing the financial performance metrics of the business. This will involve the calculation of the Price Elasticity of Demand and Price Elasticity of Supply.