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Caballero Coffee Pricing Strategy

Unit 5 Scenario
(The following scenario is based on the original Project Scenario and is specifically applicable to this assignment.)
Now that decisions about the target market, the product, and the distribution channels have been made, Lisha is hard at work developing a pricing strategy. She has asked for your help in reviewing the research that has been collected for this project. In particular, she asks you to consider what Caballero's marketing department should think about when it's pricing the company's coffee. The first thing to understand in this process is the company's pricing objective.
What will you learn from this assignment? Read these learning outcomes to find out.
Your Assignment
For this assignment, you will write a 350-word memo explaining what Caballero should consider when pricing its new packaged coffee product. Using the template provided in Materials below, answer the following questions:
? What is Caballero's pricing objective?
? Based on the information in Materials, how should Caballero price its packaged coffee products? Explain your choice.
Rather than reflecting personal opinion, your response should be fact-based, reflecting the content of the readings and scenario materials.
Before sending a document to your faculty member, be sure to include your name and the title of the assignment at the top of the document.
1. Find Caballero's pricing objective in the documents provided in Materials.
2. Write your memo in the Microsoft Word template provided below.


Solution Preview

Dear student:

I again enjoyed assisting. The info below will expand your knowledge on the subject and assist in your writing for this assignment.

Thank you.


In reviewing the materials, my choice for pricing is $10.95 per pound. Why did I choose the higher price over the two lower prices? The objective of the Caballero brand is to price the product accordingly. The research showed stated that "Caballero is seen as slightly higher in terms of quality. When asked about specialty coffees priced at $1 to $2 below Sumac, response was mixed. ...

Solution Summary

The solution discusses the pricing strategy for Caballero Coffee