Problem
Company- Shoppers Drug Mart
Target Country- India
Pricing Strategy
You have to suggest a selling price for the products sold by the company.
Task
1. What pricing strategy will you use? Select from penetration strategy, skimming strategy, static pricing, flexible pricing, competitive pricing or cost-based pricing? Explain your rationale.
2. Compare prices selected to competitor prices; explain positioning.
3. Select selling prices for products being sold, after taking all the above into account.
Costs
You have the cost of manufacturing or cost of making a product/service for the products sold by the company. You will need to identify the costs that the company will incur in order to operate and execute their selected strategy.
Task
1. Identify variable costs that change with fluctuations in units sold, such as product costs (this the cost you are given). May choose to add additional costs (if applicable) such as sales commissions, direct labour, freight, materials, and fuel.
2. Identify fixed costs that don't change with the volume of units sold, such as rent or lease payments, office salaries, insurance, finance costs, utilities, marketing costs and professional fees.