Megapixel Case
Matter of economics?
I need help with this question case study: Samson Technologies is the latest entrant in the low end camera market digital. Although its market share after its first year was less than 1%, the company is optimistic about his prospects for future growth. The problem present lies in its high unit costs. First year production costs of its 4-megapixel camera average of $ 150, well above the cost unit needed to sell in a market where low-end cameras tend to sell for about $ 150. Secondly, the year's production costs fell to $ 140. Although lower unit costs enabled the company to meet market Pricewise, their profit contributions were insufficient to cover fixed costs. Because its products have no brand awareness, corporate headquarters believes that the market penetration necessary for fixing a price below the competition. Without But with the current production costs at around $ 140, managers were asked whether it would be wise to charge a price below $ 140. What would you recommend?
This is an intersting case study. It is a pity that there was a bit more information included. Also, these situations are quite normal for a new business in an existing market. However, when I mentioned information, I meant product placement, and no mention of this in the case study. In the publicity surrounding this new camera, how they think their Samson Electronics camera should fit in the market? The problem is prices is a function of public perception of the product, and not necessarily in cost. Therefore, the price is dictated by marketing departments and not the accounting department faculty. In the 70 Ford Motor Company came out with a car called Granada. In the Ford product placement, which, through its advertising, talked about how it compares to the Mercedes S-class coupes, with respect to habitability, performance, trunk space, and other factors. And for two years the car sold like shit! The problem, as was discovered, was that it was an economic price similar to the 4-door coupes on the market. What we learned was that there was a great disconnect from the public consumer with respect to that of Granada. How could it be something like a Mercedes when it was priced $ 20,000 cheaper! Therefore, the solution was to increase the price of $ 15,000, and from there became the third best-selling Ford car for the next three years! Now with regard to their case study, none of this information is provided, except that somewhere in the opening line of camera market digital. Given that prices are based on public perception of the product, in this case, opening a line of digital cameras, then would be reasonable to think that the talk about production costs is just noise to confuse you. The idea is to gain market share, develop a following, increasing sales, and then continue with future market entries. Regardless of the fact that you have no idea what kind of identity Samson Technologies is trying to develop. So you can answer this question, here are the important points: 1. Samson Technologies has only 1% of market share. 2. The brand is Samson Electronics Sadly missing from "Brand Awreness" 3. The market for low-end camera sells for about $ 150. 4. In case of Samson Electronics sell this camera under $ 140.00? Common sense dictates that if your camera has a price far below what the normal price range is that this particular market, people perceive as scrap, and avoid it. Along with this, if Samson Electronics can do effective work with your advertising, you can successfully sell this camera for anything more than normal price range is, if you give the buying public the right reasons. However, this is also the low-end market. The reason is the low end market is because the cameras have less features, less expensive component makeup, and with a minimum of features, public perception is that cameras are more or less the same. How is it possible to differentiate a camera like this would be done in different colors, perhaps a unique way, or some other performance prejudicial to capture the attention of the buyer. But since you do not have this information, you can only go on the market information available. I do not recommend the sale of the camer under $ 140.00. Part of the reason is what I mentioned earlier in relation to people's perception. Although this is lower end market, can still be perceived as junk. People will think there's a reason why it is such a low price. If the market rate is $ 150.00, and if they wanted lower the price, somehting that could fall between $ 145.00 and $ 150.00, not to change the perception of people. But dropping ten dollars (or more) below the market rate is too. Another reason, do not tell you what the camera sold in the first year, but not even 1% of the market, which is a hell of a lot of cameras, and this was a totally new product and no market awareness. Now they have some cameras sold, and by word of mouth, and other media, are beginning to develop awareness brand, market penetration, and an identity. Indeed, they are gaining some traction in the market, and this is not the time to be fucking with the factors in the perception the public. What they should do (for now) is the course, keep the camera priced similarly to other cameras in low-end market and see if we can develop any analysis of trends now that are a year on the market. Then once they have some cold, hard data on which to work, then they can start making some movements. Good Luck!
|
|
Case Logic 2.0 Mega Pixel Swivel Head USB Webcam ~ Red $17.95 |
|
|
DXG DXG-608 6.0 MegaPixel Camera with 3x Optical Zoom and 2 LCD $179.95 6.0 MegaPixel Camera with 3x optical Zoom and 2″ LCD… |
|
|
Canon PowerShot SD800 IS Digital Elph Camera + Spare Replacement NB-5L Battery for Canon + High Speed USB 2.0 SecureDigital (SD) Card Reader + Digital Compact Camera Case + Microfiber Cleaning Cloth Kit includes: 1) Canon PowerShot SD800 IS; 2) High Speed USB 2.0 SecureDigital (SD) Card Reader; 3) ImageRecall Digital Image Recovery Software; 4) Spare NB-5L Battery for Canon; 5) Cobra Digital Compact Camera Case MT-68003; 6) Memory Card Storage Wallet; 7) Flexible Tabletop Mini Tripod;  Microfiber Cleaning Cloth >> The Canon PowerShot SD800 IS Digital ELPH is equipped with Canon’s Image Stab…
|
|
|
Canon PowerShot SD800 IS Digital Elph Camera + Transcend 2GB 150x SecureDigital (SD) Card + High Speed USB 2.0 SecureDigital (SD) Card Reader + Spare Replacement NB-5L Battery for Canon + Digital Compact Camera Case + Microfiber Cleaning Cloth Kit includes: 1) Canon PowerShot SD800 IS; 2) Transcend 2GB 150x SecureDigital (SD) Card; 3) High Speed USB 2.0 SecureDigital (SD) Card Reader; 4) ImageRecall Digital Image Recovery Software; 5) Spare NB-5L Battery for Canon; 6) Cobra Digital Compact Camera Case MT-68003; 7) Memory Card Storage Wallet; Flexible Tabletop Mini Tripod; 9) Microfiber Cleaning Cloth >> The Canon PowerShot SD800 IS D…
|
|
|
Canon PowerShot SD800 IS Digital Elph Camera + Transcend 4GB 150x SecureDigital (SD) Card + High Speed USB 2.0 SecureDigital (SD) Card Reader + Spare Replacement NB-5L Battery for Canon + Digital Compact Camera Case + Microfiber Cleaning Cloth Kit includes: 1) Canon PowerShot SD800 IS; 2) Transcend 4GB 150x SecureDigital (SD) Card; 3) High Speed USB 2.0 SecureDigital (SD) Card Reader; 4) ImageRecall Digital Image Recovery Software; 5) Spare NB-5L Battery for Canon; 6) Cobra Digital Compact Camera Case MT-68003; 7) Memory Card Storage Wallet; Flexible Tabletop Mini Tripod; 9) Microfiber Cleaning Cloth >> The Canon PowerShot SD800 IS D…
|
|
|
Kingston 4 GB Class 4 SDHC Flash Memory Card SD4/4GBET $4.98 Kingston and Amazon.com have teamed up to offer this item in Amazon Frustration-Free Packaging, a recyclable, easy-to-open alternative to traditional packaging. A Frustration-Free Package comes without excess packaging materials such as wire ties, hard plastic “clamshell” casings, and plastic bindings. It’s designed to be opened without the use of a box cutter or knife and will protect your … |
