Marketing Assignment #10

1.) For your marketing plan, describe your pricing strategy for Blue mountain Spring Water. Make sure you address the four main pricing objectives discussed in chapter 18 of the textbook. Your description should include specific steps you will take to meet the objectives.

Our product has been on the market for five years and we have experienced excellent revenue. We must develop a new pricing strategy since Blue Mountain Spring Water is going to be sold in new areas around the country. We must keep our product reasonably priced so we don’t drive away our very large loyal customer base while attracting new customers. This will be accomplished with four pricing objectives: profitability, volume, meeting competition and prestige objectives.

Profitability – This will be accomplished by delivering our product to the new target areas. We have run promotional events in all the areas and our advertizing billboards will remain visible for quite some time in these areas. We have established a strong foothold in the water business with our various sizes of bottles. With the marketing campaign we have started to promote our 500 and 750 ml bottles we will expand our lead over any other manufacture who also sells the same size bottles. While doing this we must also continue strong growth with our 1 and 2 liter bottles. Our engineering department is always looking for ways to increase efficiency while cutting down on the cost.

Volume – As stated we have seen excellent revenue growth just in the select area we have been selling to in the last five years. Now we have expanded our area by ten times. With this expansion our selling volume will naturally increase. We will experience an increase production cost, such as manufacturing, storing and transportation. The selling volume has increased which will offset these cost increases.

Meeting Competition – We understand that the water business is a very competitive business and the competition is always trying to sell their...