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The food division managers would like assistance developing a pricing strategy for the new line of dog treats, the manager is looking at pricing strategy
The food division managers would like assistance developing a pricing strategy for the new line of dog treats, the manager is looking at pricing strategy for each stage of the product life cycle information on dog food products is found below
The selling price and cost information for each box of dog food cans is as follows:
Selling price $
Costs
Direct materials $
Direct labour hours x $ $
Overhead machine hours times $ $
Dog Treats
The food division has recently released plans to manufacture a new line of CBD dog treats, Downward Dog. They are designed to help pups with stress levels, pain and inflammatory response, joint mobility and skin conditions.
The target customers for Downward Dogs are:
Owners of dogs with health and wellness concerns
Interested in the novelty factor of the treats
Regular Munchies customers who purchase Downward Dogs out of interest in the new product
There is growing competition in the CBD pet food and treat market and Munchies is keen to bring Downward Dogs to market no later than July While the food division is currently in the product development phase, they have signalled that the target market date of July is feasible.
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