EFFECTIVE PRICING STRATEGY OF NEW PRODUCTS (A CASE STUDY OF ROYALUX BY HARDIS AND DROMADES LIMITED IN ENUGU STATE)

EFFECTIVE PRICING STRATEGY OF NEW PRODUCTS (A CASE STUDY OF ROYALUX BY HARDIS AND DROMADES LIMITED IN ENUGU STATE)

ABSTRACT

This study focused on effective pricing strategies for marketing of New products a case study of Royalux by Hardis and Dromades. The objectives of the study are as follows.

–                      To determine the methods used by Hardis and Dromades in setting prices for their new product – Royalux.

–                      To determine how prices of Royalux affect its demand, position and market shares.

–                      To find out how customers respond to different prices of different quality of products.

The scope of the study was limited to Enugu Metropolis. In sourcing for the required information, the researcher used both primary and secondary data which collected through oral interviews and administration of three sets of questionnaire one for the management and relevant staff of Hard is and Dromades, others for consumer and distributors. Bowloy’s formular was used to determine the sample size of consumers while Topmans formular was used for Distributors whist a census survey was used for the management/ relevant staff of Hardis and Dromades. Data were organized, analysed, interpreted and summaried using tables, percentages, pie chart and histogram, and chi-square statistics were used to test the three hypotheses formulated.

Based on the analysis, the following finding were made;

–                      That Hardis and Dromades products become a household name in Enugu.

–                      That the firms cost of production was given the highest consideration in setting price for Royalux.

–                      The high cost of transportation and handling cost contributed to increase in price of Royalux

–                      That the wholesales and consumer of Hardis product were encourage to a reasonable price to buy Royalux.

TABLE OF CONTENT

CHAPTER ONE

1.0     Introduction

1.1        Background of the study

1.2        Statement of the problem

1.3        Objective of the study

1.4        Formulation of hypothesis

1.5        Scope of the study

1.6        Definition of term

CHAPTER TWO

2.0     Literature review

2.1        Overview of pricing

2.2        Objective of pricing

2.3        Pricing strategies

2.4        Factor influencing price (Determination)

2.5        Impact of pricing on the marketing of New product

2.6        Pricing strategies Adopted for marketing new product.

2.7        Pricing strategies for the marketing of Royalux.

CHAPTER THREE

3.0        Research methodology

3.1        Sources of data

3.2        Research instrument used

3.3        Population of study

3.4        Determination of sample size

3.5        Sampling techniques

3.6        Method of data analysis and treatment

3.7        Questionnaire administration

3.8        Limitations of study

CHAPTER FOUR

4.0     Data presentation, analysis and interpretation

4.1        Presentation and analysis of data

4.2        Test of hypothesis

CHAPTER FIVE

5.0     Summary of findings, recommendation & conclusion

5.1        Summary of findings

5.2        Recommendation

5.3        Conclusion

Bibliography

Appendix

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Marketing operates within a dynamic environment and today’s companies are wreathing with customer values and orientations; economic stagnation, environmental decline, increased global competition, and a host of other economic political, social and  pricing challenges which if Ignored will be detrimental to the company. Marketing is concerned with getting the right product to the right customer at the right price.

EFFECTIVE PRICING STRATEGY OF NEW PRODUCTS (A CASE STUDY OF ROYALUX BY HARDIS AND DROMADES LIMITED IN ENUGU STATE)