Competitive price at Grocery store Pricing---Margin Competitive price at Grocery store

Grocery’s sales increase significantly Pricing Allround ‘s the most important channel: Grocery’s sales increase significantly

We make an assumption that Grocery store ‘s sales volume contribute to We make an assumption that Grocery store ‘s sales volume contribute to ?(here need to make an assumption but I am not sure about that)

The Role of MSRP Our retail price will be positioned at the middle level according to MSRP

MSRP-MSRP*15%~40%(volume discount) Manufacturer's Suggested Retail Price Retail price

Impact on Distributor Based on your current pricing policies, what’s the impact on your distribution of a $1 increase in MSRP? A $1 decrease? High MSRP MSRP Volume Discount High Retail Price Retail Price Low units of volume Units of Volume <250 or <2500+ Distribution channel

Promotional Allowance Margin Structure Gross Margin Promotional Allowance Manufacture Sales Costs of Goods Sold

Gross Margin: 190.8 Gross Margin: 204.1 Gross Margin: 271.8 Gross Margin: 225.3

Although 18% (or $74.9M)’s promotional allowance contribute to the sales, the comparably high Cost of Goods lead to unsatisfactory gross margin.