Please respond to the following:
- Based upon the pricing concepts you read about in Chapter 11, select one (1) price type or strategy that you would use for the shoes you’ll export to your selected country. Describe the strategy and why you believe it is most appropriate in this situation. Next, describe the type of retailing operation, as described in Chapter 12, that you will use to sell your shoes. Be sure to include information about the supply chain that you will use to get the shoes to the chosen retail operations.
I would use the market skimming price type strategy, as this is designed to reach customers willing to pay a premium price for a premium product. The boots my company will be making are high-end, well-made footwear. This strategy is also good for introducing a new product, which is exactly what my luxury boot company will be doing.
The type of retail operation I would use is specialty stores. I would look for high end boutique retail stores, and high end shoe stores in the beginning of this business venture. Longer term, I would look to expand into department stores in the shoe section. If the business is very successful very early, I would consider opening a store that exclusively sells my own boots, and look to place that store in a high-end shopping mall.
The beginning part of the supply chain is sourcing the raw materials. I would begin in the United States, Italy, Germany and Denmark, as these countries produce very high quality leather. Then the boots would be crafted in the United States. The boots would be stored in a warehouse until they are packed in a shipping container, loaded on a cargo ship and sent to Russia. From a port in Russia, they would be picked up by train, and then a truck to get to their final destination. Marcie