Nesol's Pricing Strategy Analysis
Unit 5 Individual Assignment-Ugochi Faith Akwaja
Plan for Increasing Competitive Advantage in Depuy Synthes (a Johnson and Johnson company) for the Product Nesol
Pricing Strategy:
For this product Nesol a key factor to maintain competitive advantage and profitability is our choice of pricing strategy. Some critical factors important to analyze in order to choose the right price points for Nesol are:
• Cost of production: the cost of production remains an integral part of a pricing strategy if the company intends to make profits on the products being introduced into the market. Pricing should therefore cover costs of production and even transportation and storage etc. (COGS).
• Current demand within target segments: if products are in high
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Using a low skimming strategy will ensure profits until patents expire.
Nesol as a product is new and may have similar products in the market but do not share unique features. Pricing this product as premium will first of all yield profits which will allow more investments into research and development (which is at the heart of Johnson and Johnson corporate strategy) and improve Johnson and Johnson sponsored hands on trainings for surgeons in order to adapt to industry best practices. Leading research, development and training within this market place continues to be our winning strategy that consistently increases market growth and market share.
While carrying out the pricing exercise a synergy of all related departments would be required in order to achieve a consensus. Some resources may be put into gathering of market intelligence and market
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However, innovation can be measured by new product developed and product cycle.
References:
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Hamel, G. & Pralahad,C., (1985). Do You Really Have a Global Strategy?, Harvard Business Review, pp.139-148
Hamel, G. & Green, B. (2007). The Future of Management. Boston: Harvard Business School Press
Jobber, D. & F. Ellis-Chadwick, (2013) Principles and Practice of Marketing, 7th edition, Maidenhead: McGraw-Hill Education
Kotha, S. & Orne, D. ( 1989). Generic manufacturing strategies: A conceptual synthesis Strategic Management Journal, 10.3( 211).
Koter, P. & Keller, K. (2011). A Framework for Marketing Management, 4th edition, Pearson Education, Inc. Publishing as Prentice Hall
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Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior Performance New York.:Free Press
Tushman, M. & Nadler, D. (1986). Organizing for innovation. California Management Review, 28(3),
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