Discounting the Marlboro Man

- I would go about implementing my solution of redefining my pricing policy. This will begin with me reassessing my market to determine what makes me different from my competitor. Other factors to evaluate are my target, share of the market, positioning, and innovations. I would develop a tactical plan on how I could improve in each of the areas over time. This will help me to determine the value of my goods.

There is a unique situation with the short time to meet the buyers demands so I would have to determine trade-offs very quickly. In order to maintain the long relationship I will have to rely on common sense and not so much on analytical data determining the marketing strategy with Tastyco.

It has been clear that I have been a market leader in research and development, quality goods, and innovation. There would not be trade-offs on any of the aforementioned. I would reduce profit margins on the older products and come up with ways to transfer that loss to a profit on new products.

I would have to show Tastyco what value we add to their business. This will help me to justify why prices are, they may not understand why are prices are set at their price. This would be done by showing how my product and service have created value for them. I would also have to show them how compromising the integrity of my pricing policy could have a negative effect on them at a later date. If other customers demand a price reduction it could lower prices below what was established with them. They would be force to pay the higher price because of the Strategic supplier Agreement contract.

I would have to consider what pricing structure which I will implement. Both price metric and fences are potential ways to earn a profit, however, they both have negative aspects in the deal. I would relook at how we have been doing business and consider charging for service that was previously not charge for. The research and development, new technology, and...