Week Case Discussion- Q Zentein Nutrition Inc - Project Team NOTE The Zentein Nutrition case 5443

MKTG 6200 Strategic Marketing Management

Question.5443 - Week 6: Case Discussion- Q2: Zentein Nutrition Inc. - Project Team 12NOTE: The Zentein Nutrition case can be accessed in the course packet you purchased from HBP.Q1- Focusing on customer price sensitivity, would it be wise for Zentein to change its pricing strategy by lowering its price (which could make it more competitive with other brands and increase its market share)? Specifically, choose two of the twelve listed indicators of customer price sensitivity (see pp. 23-25 and Exhibit 10 in the HBP reading: Pricing Strategy) to argue for or against the idea of Zentein lowering its price. Use specific evidence from the case to support each of your chosen indicators.To help you frame your answers, note that high indicators of price sensitivity would suggest that Zentein could lower its prices while low indicators would suggest it could retain its higher prices.Use the following format in preparing your initial post:First price-sensitivity indictor that suggests Zentein should or should not lower its price: ___________Evidence to support (from case and reading): Second price-sensitivity indicator that suggests Zentein should or should not lower it price:_________Evidence to support (from case and reading): Your original post should be 150 to 200 words in length.You should respond to the original posts of at least two other discussion group members.Reply from Kristi MickelsonNo, I do not think it would be wise for Zentein to lower its pricing strategy based on the following price-sensitivity indictors:1. Importance of the PurchaseZenteinâs protein bars appeal to knowledgeable, health-conscious consumers that value clean ingredients (case study, p.2). This buyer segment values the productâs health benefits, quality and uniqueness of its ingredients over its price. Given that Zenteinâs bars have a high consumer demand as demonstrated by back orders for the product and repetitive orders from loyal customers (case study, p. 2) it is seen as essential by its customers who are willing to pay premium prices ($54 per box on Amazon - case study, p. 5). Lowering the price could impact demand as its affluent customers would question how the same premium ingredients could be offered at a lower price.WC: 108Availability of SubstitutesZenteinâs main competitors are: Built, Grenade, Quest Nutrition and Alani Nu (case study, p. 3). The amount of protein in Quest nutrition bars (20 grams) and Grenade bard (21 grams) is similar, but slightly less than Zenteinâs 25 grams of protein (case study, p. 2). And all of these brands offer protein bars that cost less than Zenteinâs bars (case study, p. 7). However, the focus of Zenteinâs customers is on its quality and health benefits derived from its fresh ingredients and collagen (case study, p. 1). Therefore, consumers are willing to pay more and may perceive lower price as lower value.WC: 102

Answer Below:

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