Daynor Chemical Company - Pricing for Dry MDA

copyright 199
ISBN 0-324-03187-4

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 3 pages in length and its case teaching package is 4 pages.

Abstract

The Daynor Chemical Company - Pricing for Dry MDA case deals with the pricing decision faced by a company introducing a new, significantly modified product into a well-established competitive market. The case also raises issues on environmental and worker exposure when dealing with pesticides. Comparative costs and basic market information are presented to enable consideration of value vs. cost pricing approaches.

This case is ecommended for use in the following classes: Principles of Marketing; Business to Business Marketing; Marketing Strategy; Pricing Strategy and Tactics.

Study Questions

1. How should Daynor define "value" for the new dry product? How will Daynor's ultimate customers (the farmers) define value?
2. How should the costs for the two products be compared seeing one is a liquid and the other a powder?
3. What price should Daynor charge for the new product if they want to:
   • maintain the same dollar profit per pound of active ingredient?
   • maintain the same gross profit percentage?
   • maintain the same cost per acre for the farmer?
   • receive full value for the improved product features?
4. What other factors, if any, should Daynor consider in establishing their price for the new product?