Your store has begun making a new meal-replacement drink—it costs $5.00 to produce a 6-pack of drinks (or $0.83.33 per drink). These drinks are being marketed as full meal replacements for individuals who are looking to lose weight. You and a small team have been tasked with pricing this product, as well as proposing the in-store display for its sale. Part 1 Your task is to propose a price for this new drink product. Take into account the cost of producing the
Your store has begun making a new meal-replacement drink—it costs $5.00 to produce a 6-pack of drinks (or $0.83.33 per drink). These drinks are being marketed as full meal replacements for individuals who are looking to lose weight. You and a small team have been tasked with pricing this product, as well as proposing the in-store display for its sale.
Part 1
Your task is to propose a price for this new drink product. Take into account the cost of producing the product, the potential cost of transporting the product and marketing the product.
Your company is trying something new with this product; while the store has sold this type of drink before, this is the first time they have produced such a product. Your company has had success in selling other company-branded food products but having its own branded product will be a new venture.
Write a short essay (400 words minimum) outlining your reasoning for the price you choose. Be sure to include the specifics of production, distribution, and marketing. And the calculated profit for the selling such a product and why. Be sure to identify your target market (and why) as well.
Part 2
Once your price has been determined, it’s time to decide how you want to display your product in the store to encourage customers to buy it. How will you motivate your target customers to buy this new product?
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