Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 6 pages in length and its case teaching package is 14 pages.

Abstract

Julie Brighton's new company was ready to introduce its first product, the "Easy Embers" charcoal starter, a tool for starting barbecue fires without annoying lighter fluids. Julie must decide on her target price to consumers, and on her pricing to the retailers she hopes will carry the product. First-year sales volume is most uncertain, and the product will face both direct and indirect competition. She will present the product next week to two important accounts. What should the prices be?

Linkages to Textbooks or Journal Articles/Fit Within a Course

The case is intended to be used in the pricing portion of undergraduate courses devoted to marketing management or principles of marketing, or courses in new product development.

Study Questions

For instructors who wish to allow students to uncover for themselves the complexity of new product-pricing decisions, a simple discussion question will suffice:

1. What price should Julie Brighton charge to the trade and to the consumer for each model of the Easy Embers® Charcoal Starter (models ED-12 and ER-12)?

1. What is your (i.e., Julie Brighton's) pricing objective for the Easy Embers® Charcoal Starter?
2. How many units do you think Alma will sell in its first year? Support your forecast.
3. How important are competitive considerations here? What direct and indirect competition must Alma consider?
4. What kind of new product-pricing strategy makes more sense in this situation: skimming or penetration pricing?
5. What price should be charged to the trade and to the consumer for ED-12 and ER-12?
6. What is the impact of your pricing decision on the first-year profitability of Alma?

The downloadable file for this case is in Microsoft® Word 7.0 for Windows®.

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