AAB CASE STUDY F292

Price skimming involves setting high prices to secure low volume of sales in order to skim the profit from the market before potential competitors take the idea and create their own substitutes. I am sitting the same F exam and I was seriously stuck when revising for section B. It is reasonable to argue that this will be an appropriate strategy due to the nature of the HSM, being innovative and potentially ground breaking, it makes little sense for AAB to use a loss leaders type pricing strategy as this gives AAB the opportunity to reap the benefits from the market by having an unique and innovative product. Thus, it provides a rough idea of where products should be further invested and perhaps where products should be balanced out with other kinds of products e. This site uses cookies.

Another method that will prove useful to AAB when making decisions about its product life cycle is the use of the Boston Matrix. OMG you found my blog!! One way that AAB can use the product life cycle to help make decisions about their wide product portfolio is by identifying where an extension strategy may need to be introduced. Email required Address never made public. Additionally, AAB could use below the line promotion.

aab case study f292

To find out more, including how to control cookies, see here: Quite the opposite to price skimming, penetration pricing involves setting low prices in order to gain a foothold in the market and therefore secure a higher sales volume. OMG you found my blog!! For example, if the pair decide azb they are estimated to have a particular income in the yearby estimating the decline in botht he sprung interiorbasic foam and ultimate mattress, AAB will be able to hinder the impact of this decline.

Points of focus – Aab case study f business studies ocr |

With limited information on the product and cost figures for the healthy sleep mattress, there are two pricing strategies that are advisable for AAB to adopt.

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Leave a Reply Cancel reply Enter your comment here You are commenting using your WordPress. Thus, this product is classified as in decline of the studu life cycle, and therefore prompts Javier and Elizabeth about the expected outcome of the product for coming years. As said before, AAB should not base decisions solely on these two tools.

F292 2014 Case study Analysis- All About the Baby(AAB)- Possible Questions

Price skimming involves setting high prices to secure low volume of sales in order to skim the profit from the market before potential competitors take the idea and create their own substitutes. Ultimately then, AAB studt use the Boston Matrix table in order to find out where they should invest more money in order to ensure the best return and maximum profit for certain potentially great products.

Just reading how you structure and tackle a variety of questions gave me so much more confidence.

aab case study f292

For this reason, it may be a good idea for AAB to market at trade fairs for mothers and set up desks in their own stores that aim on educating customers. However, taking in to consideration the current loss making situation of All About the Baby, it is important that they keep costs to a minimum without spending too much that above the line promotion entails for example television adverts.

aab case study f292

One way that AAB can use the product life cycle to help make decisions about their wide product stucy is by identifying where an extension strategy may need to be introduced. Another method that will prove useful to AAB when making decisions about its product life cycle is the use of the Boston Matrix. I just wanted to say thanks you so much, princess!

Region Country Cities Population Reasons for market segmentation: Methods of market segmentation include: Leave a Reply Cancel reply Enter your comment here By continuing to use this website, you agree to their use. Therefore, taking into consideration price and promotion, AAB will need to weigh out the multiple factors that need to be considered when figuring an appropriate marketing strategy.

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F AAB essay plans – Timeline in A Level and IB Business Studies

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To find out more, including how to control cookies, see here: However, below the line promotion is likely to be effective in generating sales in wtudy context: Due to the HSM being a new product with innovative features, it is likely to require a high degree of promotion.

You are commenting using your Facebook account. I am sitting the same F exam and I was seriously stuck when revising for section B. Better match of customer needs Better opportunities for customers More effective promotions Gain a higher share of the market Limitations of market segmentation Lack of information and data: Fill in your details below or click an icon to log in: Further to this, it could also be argued though that AAB should not use the product life cycle as a dependant factor on introducing and removing products from the product range.

Aabb this, it is suggested that AAB consider a range ztudy factors before dropping the product. G292 is also reasonable to argue that the use of a product life cycle allows Javier and Elizabeth to expect changes in their cash flow forecast. They should skim the profit from the market whilst there are no competitors.