Marketing Plan Phase III

Pricing and Distribution Considerations for Happy PawsThis newsprint depart create a distribution and pricing strategy for Happy Paws daycare (HPD). This paper forget discuss HPD?s target market and cook a pricing strategy and distribution channel to distribute that market. This leave take into account the fact that Happy Paws day care needs to break into the market and have sufficient gross revenue but also needs to be profitable. This paper will discuss the strategy by which HPD will determine its optimum pricing structure. This paper will also discuss the sign pricing discounts that HPD will offer to new customers. This paper will also analyze the value that HPD intends to provide and how it relates to the markup and profit perimeter strategy of the fellowship.

PricingIn determining the pricing for Happy Paws Daycare?s function, HPD must set their pricing to achieve optimal gross sales and profit balance. The lower the price the more HPD can await to sell but the lower the expected profits (Perrault et al, 2004). As a for profit institution HPD will need to decoct mostly on profit oriented pricing.

HPD will cancel with a price skimming strategy for its daycare services to determine the demand for its services and achieve a maximum price that people are willing to pay.



HPD?s ancillary services such as pet grooming and washup will be priced to penetrate the market and will non be a profit oriented aspect of HPD?s business. It will be in this way that HPD will stave off the pitfall of price skimming in its other products. determine skimming can potentially prevent a company from keeping its clients once new competition enters the market; by being uniquely competitive with ancillary services HPD will strengthen its grip on its client base.

Happy Paws Daycare will operate within communities and as such many...

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