Monday, June 3, 2013

Price

 We pride our selves on great customer service and the best drinking experiance at an affordable price.  We sell our bottle for a low price but we know we cant go lower than other premium drinks on the maket because that will diminish our brand. “Providing the fastest delivery, greatest assortment, and most services may not be possible or practical. The company and its channel members may not have the resources or skills needed to provide all the desired services. Also, providing higher levels of service results in higher costs for the channel and higher prices for consumers.  (ARMSTRONG/KOTLER, Marketing: An Introduction pg 322).  $19.99 for a bottle of our superior voka will cover the cost of shipping and advertising because even with a worthy opponent in the vodka industry we still need to cover our coast and as we all know it’s not cheap.  “As much as 20 percent of an average product’s price is accounted for by shipping and transport alone. This far exceeds the cost of advertising and many other marketing costs. American companies spent $1.4 trillion last year—about 10 percent of gross domestic product—to wrap, bundle, load, unload, sort, reload, and transport goods. That’s more than the national GDPs of all but 12 countries worldwide. What’s more, as fuel and other costs rise, so do logistics costs. (ARMSTRONG/KOTLER, Marketing: An Introduction pg 329)

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