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

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

3. 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)

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

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

6. 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

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

8. Gross Margin: 190.8
Gross Margin: 204.1
Gross Margin: 271.8
Gross Margin: 225.3

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