Price of Hawaiian Punch Essay Example | Topics and Well Written Essays - 750 words - 1

Price of Hawaiian Punch - Essay Example Sales oriented objectives are setup when marketers plan to target Bottom of the Pyramid segment, where playing on margins is very difficult, since the disposable income is minimal. In the given situation, Hawaiian Punch has placed its product at such a price point that it has allowed companies to play on margins as well as volumes, and giving tough competition to Nestle (Buy The Case: Hawaiian Punch Lemon Berry Squeeze 2012). Markups are a major issue when it comes to distribution of products. Numeric Spread and Weighted Spread of a firm’s products depends on the distribution markup costs that a particular company faces. Retailer margins add to the costs that the company incurs. The sole purpose of every company or MNC in the market is profit maximization. In today’s highly competitive market where national and regional markets have integrated to form one common globalized arena, marketers have a tough job to come up with ideas and innovations which bring us to the idea of increasing the ‘size of pie’ strategy. Today consumers are highly aware of their needs and want about the latest technology about what suits them, who is offering what to them, and at what prices is the desired product offered. Customers today are well connected and up to date to such an extent that they can and do access any supplier in case of MNC’s and any producer in case of individual customers, w ho offer them premium quality products at affordable prices. This easy access to premium products all around the world has back fired in some cases. For example now companies face such immense competition coming from all around the globe that they have to create discounts, personalized pricing, negotiable pricing strategies and psychological pricing to generate instant sales and ensure market share growth. In case of discounts, companies plan to