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Marketing Plan for Development of Multi-Cultural Calendar
6.1.1 Initial Pricing Strategy
The pricing strategy of this calendar is to make a minimum ten percent profit margin while at the same time sell at a maximum price as determined by demand and costs. For example, demand may reveals that customers believe that the bikini calendar is worth and is willing to pay a maximum of fifteen dollars for the calendar. On the other hand, it may have only cost ten dollars to produce. In order to maximize profits and make at least a ten percent margin, the calendar would have to sell between eleven and fifteen dollars. With all this being said, the price of competitive calendars will also be considered. It would not be wise to excessively price the bikini calendar above its competitors.
6.1.2 Pricing Strategies After January 03
The initial pricing strategy will eventually need to be re-evaluated to determine a discounted price after January of the previous year. Reason being, calendar sales decline at this point since calendar season range from November through January. At this point, any calendars that have not been sold will be considered to have a profitability of fifty percent of its initial selling price. This discount will be considered as well as the competitors discounts when determining a new price.
This calendar appears to be a great product. It is a calendar that offers a different perspective to bikini calendars in that it included local models and will be sold and distributed in the local area. In addition, this calendar will open the door for future local calendars in other locations. By the time other businesses catch on to this aspect of calendar production and sales, we will be leaders in this area. Therefore, it is recommend that you choose this product to develop and distribute during this calendar season.
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