Provide 1 response to each student post. Each response should be 150 words each. Turnitin is being used to check for plagiarism and Please use APA format. Ashley Canida XXXXXXXXXX:05pm Jun 6 at 2:05pm...

Ashley Canida

Launched in 1968, Alka-Seltzer Plus is a multi-symptom product used to temporary relieve individuals of cold and flu symptoms (Bayer AG, n.d.). Like another name brand, the price for Alka-Seltzer Plus can range anywhere from $4 to $10 because it turns on the dosage amount and the type of symptoms being treated. However, as Mark expressed above, the off-brands (e.g., Walgreens, Wal-Mart, and Dollar General) located near the name brands will often provide a much lower price.

I believe Bayer has positioned its product appropriately in the market because it is used to provide individuals relief from those cold or flu-like symptoms. However, in reference to what pricing strategy should Bayer adopt for Alka-Seltzer Plus, I think it should be the penetration pricing strategy because the company was/would be able to accept a lower price to introduce a new product line with hopes of generating higher sales and being established in the market more quickly. Whereas, a company like Apple may be more selective of a skimming strategy because individuals would be willing to pay a premium price to purchase the new product.

Furthermore, in reference to the TV ad, I would say P&G would most likely respond as any other competitor would by creating a commercial ad to “clap back.” Although I have never been the type to attack the competitor directly, I would probably use a celebrity or some way to promote the product more effectively. For example, P&G used the line, “Moms don’t take sick days.”

References

Bayer AG. (n.d.). Help People Treat Multiple Cold Symptoms. Retrieved from https://www.bayer.com/en/cold-symptoms.aspx(Links to an external site.)Links to an external site.

Betsy Miller

“Price skimming means to set a very high price that allows relatively high-profit outcomes for the firm. Penetration pricing, on the other hand, means to set a relatively low price that causes more units of the product to be sold and, thus, achieve greater penetration into the market” (Douglas XXXXXXXXXXAlka-Seltzer saw an opportunity to exploit NyQuil and benefit from it by making a commercial that showed they could outperform them. The product has been advertised as not only a new product or a better product from the company, but as a better than all the products in that part of the industry. Since 1931, Bayer has been an over-the-counter/shelf medicine, so to skim this industry as a whole is not necessary. Yet, so many new companies have come out with new cold and flu medicines making them and other competitors feel overwhelmed to compete. One of the things I would advise Bayer to use is the penetration pricing. This is the practice of setting a relatively low price to induce great adoption by consumers and thus gaining greater market share (Douglas XXXXXXXXXXThey have a name brand that everyone knows when shoppers see this product in another department they are more likely to purchase it than other products unless the other products undersell then consumers could be tempted to try them over Bayer. Profits can easily increase once consumers realize the reputation of Bayer, this will then generate future profits that it needs. And in order to increase profits, they need to continue building a reputation that can withstand competition and they must continue to build quality products at a competitive price.

Reference

Douglas, E. (2012).Managerial Economics(1st ed.)[Electronic version]. Retrieved from https://content.ashford.edu/(Links to an external site.)Links to an external site.