Channel and Pricing Strategies

Essay by rlundayUniversity, Master'sA+, November 2010

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Running head: CHANNEL AND PRICING STRATEGIES

Channel and Pricing Strategies

University of Phoenix

November 8, 2010

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Channel and Pricing Strategies

The success and performance of any new product for a given firm is subject to the channel and pricing strategies practiced by the company. A process that considers how consumers in a given target market interpret and evaluate price is used to establish the initial price offering of a new product. Consideration is also given to the economic landscape of the target market by means of an environmental scan. For Kudler Fine Foods to be successful in its international expansion, they will have to select proper pricing and channel strategies that are consistent with the target market's economic landscape. The strategies chosen must also be aligned with Kudler's corporate objectives and performance goals.

International Market Justification

Kudler Fine Foods has chosen to further expand their retail grocery operations internationally.

Through market research and environmental scanning, Kudler has identified Canada as a viable market to expand into. "If customers outside a firm's domestic market are willing and able to purchase its products or services, then selling into these markets will increase the firm's revenues," (Barney, 2007, p. 487). Beyond gaining new customers, accessing low-cost production and supply, gaining new core competencies, ease of entry into the market, and the stability of the local and national economy are key factors that influence Kudler selecting Canada as its market for expansion.

Specific data garnered from research further supports the decision to expand internationally into Canada. From a population perspective Canada contains approximately 35 million people in the second largest global nation, geographically. This brings challenge to supply, logistics, and distribution but also provides a rich resource base for the country's economy to prosper.