The Most Appropriate Pricing Technique For Cadbury

1747 words - 7 pages

The Most Appropriate Pricing Technique for Cadbury

There are 7 different pricing techniques that are available to
Cadbury.

1. First pricing technique is skimming pricing. With skimming pricing,
these prices are set very high to take advantage of some peoples
desire for a new product or design at any price.

Skimming is most effective if demand is inelastic. For e.g. Cadbury
put their prices at the same as most of their competitors and at the
price their customers are able to pay.

2. Cost plus pricing

Pricing methods which are based on the cost structure of Cadbury that
are favoured by accountants because they are supposedly more accurate
and reliable.

Cadbury is trying to maximise it profits. This method works
successfully because all costs need to be accurately accounted. In
many firms this is a very difficult process which is why the simpler
mark-up procedure is used. Cost plus pricing tends to ignore the
demand for the product and the competition.

3. Positioning pricing

Cadbury uses this method to position prices that are set which reflect
the consumers view of the chocolate bean.

4. Demand based pricing

Cadbury set their prices based on what they think the consumer is
prepared to pay. If they don’t then they wont sell as good as they
thought. If they do sell at the customer’s price they will have a good
reputation and an output of more customers.

5. Competitive pricing

In this situation Cadbury set a price roughly in line with their
competitors. This will depend on the type of competition that exists
for the chocolate bean. It is particularly the number of seller and
the number of buyers.

This process works reasonably well if the cost structures of the
companies are roughly similar.

6. Discount pricing

Cadbury is a competitive market which buyers should be able to obtain
goods for less than the advertised price. Many firms can be forced
into price-cutting if they are short of cash or need to increase sales
quickly.

7. Different pricing

Cadbury may change different prices sometimes for the same product at
different times. Its prices will be based on the elasticity of demand
for the chocolate bean.

Which is the most appropriate for this market type?

The most appropriate strategy for Cadbury is Cost Plus pricing and
Demand based pricing.

Cost plus pricing is appropriate because the information is more
accurate and reliable which is good because Cadbury won’t waste time
this way. If for example information is not accurate then Cadbury will
have a problem. This will reflect the attitudes of all their customers
because wrong information is being given. Customers will feel that
Cadburys can’t be trusted.

In this case Cadbury always try to give their customers the right
description. If they don’t then they will have to suffer the
consequences. It could be that an image of a bad reputation is
portrayed and prices and demand would decrease.

Demand based pricing is also appropriate because Cadbury is prepared
to sell their...

Find Another Essay On The Most Appropriate Pricing Technique for Cadbury

Is "The Adventures of Huckleberry Finn" appropriate for school?

649 words - 3 pages characters are easy to relate to and teach valuable lessons. The Adventures of Huckleberry Finn is a great representation of America's history. It shows the day-to-day life of people that lived in its time. It portrays the relationships between blacks and whites they way they were, and how most people did not accept them. The book also hints that alcoholism was just as big of a problem back then as it is now. In the story Mark Twain did not

Identify and rank what you consider the most significant causes of the Second World War with appropriate justification

1054 words - 4 pages The Second World War was caused by a combination of causes like the passive attitude of the democratic powers Britain, France and the USA, Hitler's aims, the League of Nations' failure to preserve peace and the aggression of Hitler's allies. But Hitler's idea of self-sufficiency, his desire to unite German speaking people and to dominate Europe and the World were the most significant causes. His rise was helped by Britain's and France's policy

Models of oligopoly behaviour, whether the respective assumptions are realistic and examples where different models might be the most appropriate

1941 words - 8 pages In this essay I am going to discuss models of oligopoly behaviour and analyse them and see whether they are realistic or not and evaluate them with certain examples where they may be most suitable.An oligopoly is a market which consists of few firms which sell similar or homogenous products. In this essay I will also be looking at a duopoly, which is a market with two firms.The Cournot equilibrium, this is where "a pair of output levels, one for

The Need for Appropriate Government Response to the Global Financial Crisis

1439 words - 6 pages that the government find an efficient policy response that benefits as many low-income individuals and families as possible in the next five years. The most promising and urgent policy response to improve the well-being of low-income individuals and families in the next five years would be to expand the Earned Income Tax Credit (EITC). An expansion of the EITC would increase much needed cash assistance to low-income families without changing

Id the Old Man and the Sea and appropriate book for a high school reading list

936 words - 4 pages Untitled The Old Man and the Sea Giving high school students good, comprehensive literature is one of the most important jobs of an English curriculum. Classical literature does an excellent job of providing students with these requirements, but occasionally the text can be too complicated for high school students to comprehend. Ernest Hemingway's classic novel, The Old Man and the Sea does a great job of presenting its

The most import dynasty for China history

1528 words - 6 pages first dynast to unified China because it have appropriate reforms. Qin dynasty was carried on reforms and it is relate to lots of areas, Such as political, culture and social reforms. For the political reform, the country of Qin access to Shang Yang's idea to carried on the reform. Culture reform was the most important for the China history because Qin Shi Huang were let the currency and script to been unified. Social reform cans helpful Qin Shi

The most import dynasty for china history

1528 words - 6 pages first dynast to unified China because it have appropriate reforms. Qin dynasty was carried on reforms and it is relate to lots of areas, Such as political, culture and social reforms. For the political reform, the country of Qin access to Shang Yang's idea to carried on the reform. Culture reform was the most important for the China history because Qin Shi Huang were let the currency and script to been unified. Social reform cans helpful Qin Shi

Suggest an appropriate brand name for each of the following goods. Defend your choices

1209 words - 5 pages , advertisement before and after the sale is critical. In addition to creating awareness and promoting initial purchases, advertising shapes and reinforces consumer attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop into loyalty. For example, the most avid readers of a travel ad are those who just returned from the destination. Ads reinforce a traveler's perception and behavior. Remember, it is easier to

How Are Most Celebrities Inappropriate Role Models for the Youth?

686 words - 3 pages People look up to celebrities as role models, the youth especially. The youth believes that if they imitate these cynosures they will become affluent and legendary. Famous people imply that if the youth act insubordinately they will be successful in life. Celebrities of today are not appropriate role models for this generation. Everywhere a person looks, sex is exalted by celebrities. Commercials and advertisements now use risqué celebrities who

The Most Compelling Reason for Studying Religion Today is Politics

1359 words - 5 pages The Most Compelling Reason for Studying Religion Today For me, the word ‘religion’ conjures up images of wailing fat ladies dressed in their Sunday best singing at the top of their lungs about the glory of God. Of course, this image comes from my childhood when I attended the New Testament Church of God in Jamaica every Sunday, rain or shine, with my grandmother. For her, Church, Christianity and God was a way of life

Physical Castration is The Most Effective Punishment for Sex Offenders

2380 words - 10 pages go back into society. The offender becomes safe enough for them to live a normal life around normal everyday people. There are many different punishments that have been used on sex offenders and most of them just do not work the way they need to. Chemical castration is a form of castration without the surgery. Offenders are injected with depo-provera which is birth control meant for women. Although the drug tricks the brain into thinking the

Similar Essays

What Interview Technique Would Be Appropriate For An Administrative Position?

405 words - 2 pages The interview technique that would be appropriate for an administrative positionwould be the behavioral and the panel interview. The reasons for choosingthese types of interviews, sometimes it is good to make the interview asstressful as can be to see how much pressure the candidate can tolerate.With panel interview it gives more perspective on which the candidates are. Italso makes the interview easier by bringing several staff together at once

Fish Technique: A Powerful Technique For The In Situ Detection Of Organisms In Environmental Samples

578 words - 3 pages FISH is a powerful set of technique for the in situ detection of active growing organisms in environmental samples, a procedure that allows researchers to locate the positions of particular DNA or RNA sequences in the cytoplasm, organelles or nucleus [59]. In FISH a labeled DNA or RNA sequence is used as a probe to identify or quantify the natural occurring counterpart of the sequence in a biological sample. FISH probes often target sequences of

Down Syndrome Children: Is Their Play Appropriate For The Environment?

1914 words - 8 pages syndrome is a well-known problem and disability, professionals are trained to enforce verbal skills and symbolic play, as well as asking volunteers to participate in community involvement with special needs children. From society's perspective, Down syndrome children have become a serious complication in the world. Disabled children with special needs like Down syndrome are not given the directed attention needed for appropriate treatment. In 1862

The Democratic System Of Government Is Appropriate For Pakistan

904 words - 4 pages responsible for spoiling the economy of the country along with other impacts. Iraq is another example. Ten years of military dictatorship had a devastating effect on the social life of the people of Iraq. Sectarianism is a gift of Saddam to the people of Iraq. It seems that the people of Iraq hate Saddam Hussain the most. So, obviously the military can do better job on the border than in politics.This can be well demonstrated with the help of an