ucanwest mrkt621 marketing wholesaler and retailers

1.
The
Green Diaper
company has just developed and launched a quickly compostable version of an existing baby diaper. Category managers in the company have faith in this product extension and believe it can make a significant dent in this highly competitive and price sensitive market. Regional market executives from the city market, chosen for this product’s test and introduction, suggest that this price could be used in the first three months of operation. A manufacturers suggested retail price (MSRP) for a box of 40 babydiapers is CAN $28.50. This price is considered sufficient, that is, enough to cover project development related costs. Estimating a 25 percent and 30 percent margins for the wholesaler and retailers respectively, what is the maximum price that
Green Diaper
should set for the wholesaler? What should be the price that the former should charge to retailers selling the product to end customers? In your answer use the template presented in the figure aforementioned

2. From the planning process model analyzed in class, what type of
pricing strategy and tactic
should the company follow for this type of product and market circumstance?Why?
Report guidelines: Make sure to provide support for your arguments. Your answer inessay format.

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