1. You are the Marketing Manager of a premium shampoo brand STRONG focusing on a niche market of curly hair. The sales of STRONG have been declining and the marketing director is worried about the situation and wants you to consider the pricing strategy ofthe brand. The price of a STRONG shampoo is matched with the professional selection shampoos in supermarkets such as Tresemme and is currently $7 for a 900ml bottle. The pricing of STRONG is not based on marketing research and careful strategy selection, but on the gut feeling of the marketing director. Since you have taken a marketing management class, he is interested on your expertise and wants to re-think the pricing of STRONG. He has heard of cost-plus pricing, value-based pricing and price customization, but does not understand the concepts. The marketing director has come to you to seek advice. You need to outline and explain the following for him (25 marks): Cost-plus pricing Value-based pricing and value-pricing thermometer Price customization and consumer surplus A new price for STRONG based on its product characteristics and the pricing concepts you have explained to the marketing director