Report guidelines: Make sure to provide support for your arguments. Your answer in essay format. Total write up 500 words.
Strong References from Text Book, Peer Review Articles and Online trustable Sources.
1. The Green Diaper company has just developed and launched a quickly compostable version of an existing baby diaper. Category managers in the company have faith in this product extension and believe it can make a significant dent in this highly competitive and price sensitive market. Regional market executives from the city market, chosen for this product’s test and introduction, suggest that this price could be used in the first three months of operation. A manufacturer’s suggested retail price (MSRP) for a box of 40 baby diapers is CAN $28.50. This price is considered “sufficient”, that is, enough to cover project development related costs. Estimating a 25 percent and 30 percent margins for the wholesaler and retailers respectively, what is the maximum price that Green Diaper should set for the wholesaler? What should be the price that the former should charge to retailers selling the product to end customers? In your answer use the template presented in the figure aforementioned
2. From the planning process model analyzed in class, what type of pricing strategy and tactic should the company follow for this type of product and market circumstance? Why?