Explain what is the purchase power parity

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Question a. What is the Per Capita Income in Khabarovsk, Russia? You will notice the income in Khabarovsk is quite different from that of Moscow, Russia.

Question b. What is the Purchase Power Parity? What can Per Capita Income in Khabarovsk buy considering their cost of living?

Question c. What is Del Monte's company's basis of pricing?
(hint: you can compare Del Monte and Heinz to gauge)

Question d. What is the competitive environment in Khabarovsk?
i. Any direct competitors?
ii. What are substitute products?
iii. What is your best judgment of consumers' perceived value for product such as foreign brand (especially American brand) tomato ketchup?

Question e. Now taking 1a - 1d into consideration, what should be your pricing strategy (skimming, competitive, premium, penetrating, etc.)

Question f. How does your price compare to that of the price in the U.S. in terms of the product price ratio to the household income?

Question g. What is your rationale for the pricing in terms of the brand positioning you wish to maintain?

Reference no: EM132646789

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