Reference no: EM132302341

Directions: Without plagiarizing please discuss how you feel about my classmates venture below;

Since my business is not yet up and running, I have no previous data to use a quantitative sales forecasting technique. Because of this, I will be using a qualitative methods. As the referenced video states, qualitative methods make their assumptions and sales forecasts based on expert opinion or consensus methods (Marketing 91). I plan to make my sales forecast using sales data and price points from similarly sized breweries.

There are two different pricing strategies that we discussed this week. Those are price skimming and market penetration. The two differ in strategy but both involve the price of the product changing over time. Price skimming is the technique of placing a high sale price of a product and gradually lowering the price over time (Kotler & Keller, 2016). The other method described by Kotler and Keller is market penetration. This is where a product starts out with a low sales price and the price is gradually raised over time (2016). I will be using the market penetration strategy. I have two ways I could implement this strategy.

The first strategy is based on my first year of business with no customer base or brand loyalty. Using this assumption I would establish a customer base by keeping prices as low as is reasonable. As time goes on and my customer base grows, I can slowly start to raise prices in order get a decent profit margin.

The second strategy is based on the assumption that my company is established and I want to add a new beer. In this instance, I would consider adding the new beer as a seasonal rotator and sell it at a lower price than my other lines in order to get customers to buy it. If the beer was successful enough to keep on tap year- round, I would slowly raise the price for the offseason to match or exceed the cost of my other year-round beers.