Marketing
Autor: prepforclass • August 25, 2017 • Case Study • 429 Words (2 Pages) • 369 Views
Deere & Co.: Industrial Equipment Operations
The case provides an opportunity to learn about the role of pricing in conjunction with product line expansion in a business-to-business industrial market setting. In your case analysis, focus on pricing-related issues for the focal product and product line. Be sure to use the 3 C’s pricing framework (see our class notes) to structure your analysis and recommendation.
Issues to Consider in Preparing Your Case Analysis
- What is the marketing situation that Deere’s JD-750 will find itself in when it is introduced into the market? Consider these and other issues:
- Why is Deere introducing a large crawler tractor like JD-750? What are the product features and benefits of the JD-750? How will the JD-750 be differentiated from other products in the Deere product line?
- What are customers in this market like? What issues are of concern to them? How does that relate to the JD-750?
- What is the nature of competition in this market? How does that relate to pricing?
- What are Deere’s marketing objectives and/or competitive strategy and how will/should they affect analyses, the process of pricing decision making, and the actual recommended price?
- $59,785 is a price that has been suggested for the JD-750. In the slides for this week, we introduced the notion of the 3 C’s framework for price setting. How can you use this framework to develop alternatives to the suggested $59,785 price? What dollar value might contractors place on the JD-750 and its benefits? (HINT: consider the effect of a 10 – 15% productivity improvement over the D-5, and other ways of placing a dollar value on the JD-750 and the benefits it offers. In business, time is often money, so to speak. Increased productivity is valued.)
Your Assignment
Using the 3C’s model of pricing (cost, competition, customer value) create a diagram outlining various pricing levels that could be possible alternatives to the proposed price of $59,785. (this will not be counted towards your 150 word limit). See template on next page.
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