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Canty international

Lil Bobdog. Canty international. Introduction. Canty International wall systems and coverings for industrial/commercial use Bryant Inns hotel industry Request for Proposal Design Lab. Decoline. Techno-Fabric Abrasion-resistant & soil-proof Cement Bamboo fibre

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Canty international

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  1. Lil Bobdog Canty international

  2. Introduction • Canty International • wall systems and coverings for industrial/commercial use • Bryant Inns • hotel industry • Request for Proposal • Design Lab

  3. Decoline • Techno-Fabric • Abrasion-resistant & soil-proof • Cement • Bamboo fibre • Fire-resistant & sound filter • Variety of colors, textures, designs

  4. Problem • What should be the proposed pricing strategy for the Canty International’s Decoline?

  5. Costs Break Down Key Findings

  6. VARIABLE COSTS (per m2) • Techno-Fabric $7.28 • Bamboo Fiber $3.30 • Cement $0.80 (environmentally friendly) • Labor $1.31 • TOTAL VARIABLE COSTS = $12.69

  7. FIXED COSTS (per month) • Supervision $1080 • Inspection $165 • Miscellaneous Indirect Labor $84 • Floor Space Expense $327 • Small Tools & Materials Expense $30 • Building Tables $38.75 • Marketing Communication Program $403.33 • Selling & Administrative Expense $3896.67 • TOTAL FIXED COSTS = $6024.75

  8. BREAKEVEN POINT • Cost = $6024.75 + $12.69X • Given a sales potential of 500m2 a month, Cost = 6024.75 + (12.69 x 500) = $6869.75 • Revenue = SX$12,369.75 = S (500) • The minimum price for Decoline must be $24.74 /m2 X = volume of Decoline Produced S = selling price

  9. PRICE RANGES • optimum capacity: (2000 m2/month) the BEP = $15.70 • conservative estimate: (500 m2/month) the BEP = $24.74 • pessimistic sales: (250 m2/month) the BEP = $36.79

  10. SWOT Analysis

  11. Strengths & Weaknesses • Strengths • Current Plant • Well equipped. • Lower costs • Adequate employees • Company Development • Well established • Current Market • Weaknesses • Decoline cannot be an on shelf item because of the option to make different tints & designs.

  12. Opportunities & Threats • Opportunities • If Bryant Inn is happy with the product that they receive, they are likely to implement the same product throughout most or all of their hotels and inns, nationally and internationally. • Word of mouth, as companies visiting the hotel will see the quality of the product and will recommend it to their friends/partners • Developing a highly recognized brand will be easy as long as their product is high in quality; this will help Canty International build a name in this market. • Threats • Other companies producing the same product, using our ideas and the work we have done to make it to this point. They will not have to create marketing demand for the product category, instead focus directly in creating demand for their specific brand. • Government changing regulations and laws, making it so our product specifications don’t pass building codes or environmental standards. • Price for raw materials go up causing out variable costs to rise causing our product not to be competitive in the pricing margin.

  13. Recommendations

  14. Alternative 1 Value-Based Pricing • Canty International can price their product at the low price of $25.00 per square meter. This is just above the breakeven point price if Canty International sells 500 square meters of the product. • Canty International will rely on volume of sales. As the volume of sales goes up the company will be able to reduce the production costs and lower the price even more.

  15. Alternative 2 Price Skimming • A high price of 60$ will be set for Decoline. • Start with a high price to signify quality. • Test consumer price sensitivity

  16. Product Life Cycle (Grewal, 2009)

  17. Alternative 3 Price Penetration • Canty International can price their product at the low price of $25.00 per square meter. This is just above the breakeven point price if Canty International sells 500 square meters of the product. • Canty International will rely on volume of sales. As the volume of sales goes up the company will be able to reduce the production costs and lower the price even more.

  18. Implementation Plan • Tell Main Customers the Price and discounts • Advertize at trade shows that industry leaders will attend • Offer option to product; change in color after a year or two • Boost Price

  19. Plan B Price Skimming Solution

  20. Course Concepts • 4P’s • SWOT • Innovator • Product lifecycle • Pioneer product • Breakeven point (math) • STP steps –marketing strategy • Environmental analysis • Market trend analysis • Competitive analysis • Market Penetration Pricing • Price Skimming • Costs • Price-quality relationship

  21. References • Grewal. (2009). Marketing: Canadian Edition. United States: McGraw-Hill.

  22. Another Presentation brought to you by Lil Bobdog!!

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