Question

Fruits By the Foot By General Mills.

1) Your CEO has come to you and asked that you develop a NEW approach to pricing for your product for a specific new distribution outlet (he won’t tell you much, but it will reach a new target market: urban, mid to upper-income, multicultural, 20s-30s). What pricing strategy will you utilize and why?

2) How does this new pricing strategy fit with the Marketing Mix, Positioning, and Differentiation strategy for your company? What other creative new pricing methods might your brand consider to appeal to current customers and sell more product?

Answer 1

1) Your CEO has come to you and asked that you develop a NEW approach to pricing for your product for a specific new distribution outlet (he won’t tell you much, but it will reach a new target market: urban, mid to upper-income, multicultural, 20s-30s). What pricing strategy will you utilize and why?

I would Price Skimming strategy, because-

• General mills has a substantial competetive advantage
• Target group is urban, mid to upper-income, multicultural, 20s-30s, thus it can afford this pricing
• The product is new and customers would pay the high price

2) How does this new pricing strategy fit with the Marketing Mix, Positioning, and Differentiation strategy for your company? What other creative new pricing methods might your brand consider to appeal to current customers and sell more product?

• General mills has positioned itself as the niche brand with this brand as this brand is considered a luxury
• Target market being young and successful won't mind spending extra on their lifestyle so marketing mix would be taken care of
• Differentiation of this product would add as the competetive advantage thus making this strategy a success