EFFECTIVE PRICING STRATEGY OF NEW PRODUCTS (A CASE STUDY OF ROYALUX BY HARDIS AND DROMADES LIMITED IN ENUGU STATE). A RESEARCH PROJECT MATERIAL ON MARKETING
ABSTRACT
This study focussed on effective pricing strategies for marketing of New products a case study of Royalux by Hardis and Dromades. The objectives of the study are as follows.
– To determine the methods used by Hardis and Dromades in setting prices for their new product – Royalux.
– To determine how prices of Royalux affect its demand, position and market shares.
– To find out how customers respond to different prices of different quality of products.
The scope of the study was limited to Enugu Metropolis. In sourcing for the required informtion, the researcher used both primary and secondary data which collected through oral interviews and administration of three sets of questionnaire one for the management and relevant staff of Hardis and Dromades, others for consumer and distributors. Bowloy’s formular was used to determine the sample size of consumers while Topmans formular was used for Distributors whist a census survey was used for the management/ relevant staff of Hardis and Dromades. Data were organized, analysed, interpreted and summaried using tables, percentages, pie chart and histogram, and chi-square statistics were used to test the three hypotheses formulated.
Based on the analysis, the following finding were made;
– That Hardis and Dromades products become a household name in Enugu.
– That the firms cost of production was given the highest consideration in setting price for Royalux.
– The high cost of transportation and handling cost contributed to increase in price of Royalux
– That the wholesales and consumer of Hardis product were encourage to a reasonable price to buy Royalux.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Marketing operates within a dynamic environment and today’s companies are wreathing with customer values and orientations; economic stagnation, environmental decline, increased global competition, and a host of other economic political, social and pricing challenges which if Ignored will be detrimental to the company. Marketing is concerned with getting the right product to the right customer at the right price.
Price for a product is one of the factors that determine the demand for the product, that is why economic theory states that price is determined by the interaction of demand and supply cost and price usually affect demand and these three are in continuous inter play. For economist, it is a key factor describing the level and movement of demand. The basic assumption made about demand is that all things being equal, price plays a decisive role in determination of the rate of purchase by the consumers. Price presents a thorny but interesting phenomenon under our current economic system.
Traditionally, price occupies the second position of the internal or important variables of the marketing mix otherwise known as 4ps.
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