A) What pricing strategy will you select? Explain your position.
When evaluating the position that the Cervena products will be looking to gain within the market, a market based pricing strategy was chosen. The chosen pricing strategy is perceived value pricing; this is where the price is based on how the markets values the product (Lee & Carter, 2012). From this, the product can be positioned into the market as to where its value proposition fits based on the estimates of superior quality, image and service. This means that it is not based on cost of production (Lee & Carter, 2012). The explanation of choosing this position is that the Cervena products will try and be positioned at the higher end of the market. This is because the target …show more content…
However, all products will meet the assured standards and requirements of the Cervena brand.
2.3 Volume
2.3.1 Units of Measurement
1 Kilogram is the unit of measurement for selling the striploin
2.3.2 Number of units
275 units of Cervena striploin is the contract amount
2.4 All volume in the contract will be shipped in 27.5kg lots
3.0 Price
3.1 The price for one unit of product as defined in item 2 of the present contract is established as twelve dollars and seventy-four cents (US dollars) ($12.74 USD) totalling $3,503.50 for this contract with the term of trade FOB. Therefore, all cost associated from when the goods cross the rail of the ship are the responsibility of JMI This price is valid till 10th June 2016
3.2 For orders over 385 units a 5% discount will be applied
4.0 Payment
4.1 Method of payment
The draft method is the method of payment that will be used.
4.2 Payment should be produced against the following documents.
− The 60-day time draft document is written by SFF and issued to JMI after the agreement of terms of sale and …show more content…
10.0 Force Majeure
10.1 List of situations which are accepted by both parties as the Force Majeure
− Fire
− Flooding
− Earthquakes
Notification should come from the affected party in a timely matter to help develop plans and strategies to best deal with the problem. This is to ensure the minimisation of the impact from the adjustment to the contract or cancellation of the contract.
11 Arbitration
11.1 In the event of disagreement over the completion of the contract, SFF and JMI agree to try all possible common solutions to proceed with completion of the contract.
11.2 In the event that common solutions are not reached, the SFF and JMI agree to submit their disagreement to the International Chamber of Commerce. The decision of this authority shall be binding on both parties.
12. Additional Requirements and Information
12.1 This contract is prepared and signed in four copies in English and Spanish languages, one copy per each party, each copy has the same
When evaluating the position that the Cervena products will be looking to gain within the market, a market based pricing strategy was chosen. The chosen pricing strategy is perceived value pricing; this is where the price is based on how the markets values the product (Lee & Carter, 2012). From this, the product can be positioned into the market as to where its value proposition fits based on the estimates of superior quality, image and service. This means that it is not based on cost of production (Lee & Carter, 2012). The explanation of choosing this position is that the Cervena products will try and be positioned at the higher end of the market. This is because the target …show more content…
However, all products will meet the assured standards and requirements of the Cervena brand.
2.3 Volume
2.3.1 Units of Measurement
1 Kilogram is the unit of measurement for selling the striploin
2.3.2 Number of units
275 units of Cervena striploin is the contract amount
2.4 All volume in the contract will be shipped in 27.5kg lots
3.0 Price
3.1 The price for one unit of product as defined in item 2 of the present contract is established as twelve dollars and seventy-four cents (US dollars) ($12.74 USD) totalling $3,503.50 for this contract with the term of trade FOB. Therefore, all cost associated from when the goods cross the rail of the ship are the responsibility of JMI This price is valid till 10th June 2016
3.2 For orders over 385 units a 5% discount will be applied
4.0 Payment
4.1 Method of payment
The draft method is the method of payment that will be used.
4.2 Payment should be produced against the following documents.
− The 60-day time draft document is written by SFF and issued to JMI after the agreement of terms of sale and …show more content…
10.0 Force Majeure
10.1 List of situations which are accepted by both parties as the Force Majeure
− Fire
− Flooding
− Earthquakes
Notification should come from the affected party in a timely matter to help develop plans and strategies to best deal with the problem. This is to ensure the minimisation of the impact from the adjustment to the contract or cancellation of the contract.
11 Arbitration
11.1 In the event of disagreement over the completion of the contract, SFF and JMI agree to try all possible common solutions to proceed with completion of the contract.
11.2 In the event that common solutions are not reached, the SFF and JMI agree to submit their disagreement to the International Chamber of Commerce. The decision of this authority shall be binding on both parties.
12. Additional Requirements and Information
12.1 This contract is prepared and signed in four copies in English and Spanish languages, one copy per each party, each copy has the same