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Help Denis to re-evaluate his pricing and distribution based on the feedback from retailer SuperBuy.
Click on Tool. Since we know how much a consumer pays for ZAP - change the input to Customer.
a) In the tool fill in the numbers from the case. Note that the case provides Customer $$, and all the margins. The tool will automatically calculate unit cost for the manufacturer and price paid by each of the channel member. Report Unit Cost for manufacturer and explain what that means.
b) Now calculate selling price for the manufacturer if Denis in fact changes the price to 22.99 without changing the % margins for any of his channels.
c) What implications will this move have on ZAP's cost strategy? What alternative would ZAP have if it can't change the cost strategy?
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∙ 11y ago
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