Final Project: Price

Our product will come in an assortment of options for our consumers. Our in store Ben & Jerry's serving size and price will be established by Ben & Jerry, and the in grocery store price will be in turn decided by us. We will have two different options at the local grocery stores and natural food stores.  A base price of $5.95 will be set for a single serving 'make it yourself' kit  and there will also be a family size, 3-pack 'make it yourself' kit, base priced at $13.95. When people think of Ben & Jerry Ice Cream, they think about quality. Good tasting, naturally flavored quality ice cream, so their pricing and our pricing is of course going to reflect that. "Psychological pricing

Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product." Marketing: An Intro, Armstrong/Kotler, page 291. Besides using that specific type of price, we will also implement 'Market Penetration' pricing. As I have stated earlier, in our first week of product introduction, 108 Ben & Jerry locations will offer our new product at no charge, in an attempt to grab a firm hold of potential consumers. 

"Rather than setting a high initial price to skim off small but profitable market segments, some companies use market penetration pricing. They set a low initial price in order to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share." Marketing: An Intro, Armstrong/Kotler, page 286.