Joy4Home Brands: Pricing Matters

Name: Joy4Home Brands: Pricing Matters (English version)
SKU: 523709

Ofek, Elie; Koenigsberg, Oded; Bertini, Marco

Product #:523709

Supplier:Harvard Business School

Discipline:General Management

Details:Exercise (PDF) • 3 pages • 2022-08-22

Subjects:

Pricing strategy Sales and marketing Leadership and managing people Management

Your Price:

$12.40

Purchase this material with a free Educator Account and enjoy more benefits:

Free Educator Copy
Free Teaching Notes
Build your coursepack
Discounted academic price

Joy4Home Brands, the maker of novel houseware items, was gearing up for its launch. The company would be introducing two lines: kitchenware products and storage containers. The initial go-to-market plan called for a direct to consumer (DTC) channel strategy. While Joy4Home had a handle on its customer acquisition efforts, it had yet to determine the DTC pricing for each line. Moreover, two additional opportunities had recently emerged. The first was a B2B opportunity involving a modified kitchenware line, and the second was a brick-and mortar wholesale proposal for larger storage containers. The Chief Marketing Officer (CMO) had market research data and other information to help her determine the optimal pricing scheme for these various sales avenues. Recommendations were needed soon.

Learning Objectives

This exercise is intended to help students gain experience and insight into optimal price selection under various commercial settings and using available data. In particular, it allows exposing students to: bundling and mixed bundling; price schedules that involve quantity discounts; wholesaler and retailer pricing inefficiencies, namely double marginalization, and devising ways to resolve them.