Marketing Management

Summer Taylor

Marketing Management

Assignment 3

Professor Greene

The pricing strategy for my company is going to be Penetrative Pricing because I plan to produce a lot of units and sell them for a low amount especially in the beginning and then later on, maybe like seven years down the line switch to Skimming Pricing, if the demand for my product greatly increases, that is only an idea but I’m not certain if I would switch to that my pricing strategy. I think that in the bakery business if you use Skimming Pricing as your strategy then you be sure to loose customers. I feel that Penetrative Pricing would probably be the best for a bakery because I feel as if you will sale more products that way. I feel this way because in my opinion no one is going to buy any kind of over priced bakery item no matter what the quality of the product is like.

My pricing tactics will be running weekly ads in the local and surrounding citys’ newpapers to put the word out about my company. My product is going to be very affordable, for one slice of cake you will only pay $6.99 and for a one layered cake you will pay $13.99, for a two layered cake you will pay $19.99 and for a three layered cake you will pay $25.99. The specialty cakes will range from $75.00 to $850.00 or higher. The pricing depends on how many layers you want and which kinds of filling and cake batter you would like. Also the pricing depends on if you want any kind of specialty designs or characters placed on the cake. Specialty items cost more because it takes a lot of time and effort. The only other major competition that my company will probably have will probably be specialty name brand products like Sarah Lee, there will be competition with other bakery’s as well but I don’t think that they will measure even close to my company.

The only legal and ethical issues t hat I foresee is not over pricing the product so you wont loose customers. My distribution process is going to be buying my baking...