Purchase Solution

Pricing and Marketing Strategy Problem

Not what you're looking for?

Ask Custom Question

The I. Kruger Paint and Wallpaper Store is a large retain distributor of the Supertrex brand of vinyl wallcoverings. Kruger will enhance its citywide image in Miami if it can outsell other local stores in total number of rolls of Supertrex next year. It is able to estimate the demand function as follows:

Number of rolls of Supertrex sold = (20 x Dollars Spent on Advertising) + (6.8 X Dollars spent on in-store displays) + (12 x Dollars invested in on-hand wallpaer inventory) - (65,000 x Percentage markup taken above wholesale cost of roll).

The store budgets a total of $17,000 for advertising, in-store displays, and on-hand inventory of Supertrex for next year. It decides it must spend at least $3,000 on advertising; in addition, at least 5% of the amount invested in on-hand inventory should be devoted to displays. Markups on Supertrex seen at other local stores range from 20% to 45%, Kruger decides that its markup had best be in this range as well.

(a) Formulate as an LP Problem.
(b) Solve the Problem. (Can use Excel Solver or QM)
(c) What is the difficulty with the answer?
(d) What constraint would you add?

Purchase this Solution
Solution Summary

This solution analyzes the marketing situation of I. Kruger Paint and Wallpaper.

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

View More Free Quizzes
Related BrainMass Solutions

  • Pricing Strategy for ITO Company

    65119 Pricing Strategy for ITO Company PROBLEM: You need to discuss pricing with senior management.

  • marketing mix

    242988 Example Marketing Mix Problem How does the marketing mix affect the development of your selected organization's marketing strategy and tactics?

  • Pricing strategy for Alcohol Monitoring System

    I have attached my IMC for this product and other attachments for you to refer to for my product. Thank you. Please provide as much details as possible for this problem in regards to a marketing strategy for my product. 1.

  • game theory in marketing

    The nash equilibrium is (limit price, limit price), and the outcome is (1.5, 3). The solution examines game theory in marketing. The limit pricing payoff matrix is determined. Whether there is a Nash equilibrium in the problem is determined.

  • How does the choice of distribution channel affect pricing strategies?

    Factors such as discomfort and risk can be considered to affect Choice of distribution strategy and impact on pricing: ?

  • Research in marketing, strategies and advantages

    of this strategy : Marketing research helps a firm take a decision about components of marketing mix: product, distribution, promotion and pricing.

  • Evaluating Promotion Campaigns and Pricing Strategies

    If a non-marketing professional evaluates a pricing strategy for a branded product, it often leads to a more well-rounded pricing strategy approach.

  • marketing strategy

    89919 marketing strategy importance Why is the marketing strategy so important to the pricing decision? What are some examples in which strategy and the price appear to be inconsistent?

  • Distinguish mass marketing from target marketing

    237827 Distinguish mass marketing from target marketing 1. Distinguish clearly between mass marketing and target marketing. Use an example. 2. What are the 4 types of pricing strategies - give an example of each. . 3.

  • Caterpillar Inc.

    Also their Product Strategy, Pricing Strategy, Distribution Strategy, and Promotional Strategy? What is the current marketing plan for Caterpillar Inc?

View More Related Solutions