The Marketing Mix
Sana Textiles (ST)
Sana Textiles (ST) is a private limited company in country M that manufactures and sells premium cotton fabric. Its slogan is 'crafted for those who demand the best'. The market for fabric is very competitive, with ST facing growing pressure from cheaper foreign competitors. ST has traditionally used a price skimming strategy, targeting customers who value quality over price. However, ST has recently lost market share as more customers switch to lower-priced alternatives.
ST's products are currently sold exclusively through a network of authorised distributors across country M. The Finance Director has produced financial data for 2023, shown in Table 2.1.
Table 2.1 ST financial data 2023
Average selling price per unit ($) | 25 |
Average variable cost per unit ($) | 10 |
Total fixed costs ($000) | 180 |
Total units sold (000) | 20 |
Maximum capacity (000 units) | 25 |
Employee motivation at ST has become a serious concern. Many employees report that their work is repetitive and offers little opportunity for personal development. Two senior supervisors recently left to work for a competitor. ST's management is considering introducing performance-related pay to motivate the remaining workforce.
Evaluate whether ST should change from a price skimming strategy to a price penetration strategy.
Ai এর মাধ্যমে
১০ লক্ষ+ প্রশ্ন ডাটাবেজ
প্র্যাকটিস এর মাধ্যমে নিজেকে তৈরি করে ফেলো
উত্তর দিবে তোমার বই থেকে ও তোমার মত করে।
সারা দেশের শিক্ষার্থীদের মধ্যে নিজের অবস্থান যাচাই
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