In terms of pricing it is necessary to consider some key points such as the following. Firstly, the price and availability of substituted in the market must be considered. Now soft drinks for children are not exactly a new element here in the United Kingdom, so pricing must be done based on a thorough customer analysis. Secondly, the characteristics that are unique from the competitor must be assessed as it is based on the assessment that pricing could be decided. Customers would be willing to pay more for some features and if the product is just the same they would not be willing to pay more. Now in the case of the new product, when the unique selling proposition is added ten it would be possible to price the product a little higher as schools and school districts would be willing to pay a little extra.
Income is an important aspect to consider when deciding the prices. Income is important because customers should be able to afford the products. Now as observed in the case of the media articles even during the time of the recessions, the sales of the soft drinks have not been affected that much. However, considering that this is a special product that would be aimed at children It would be necessary to focus more on manufacturing which could increase the manufacturing overhead significantly. So, pricing must be adjusted according to the number of units sold or manufacturing might have to be adjusted based on the demand. In addition, the price strength and demand for some of the existing products must be considered (Vartanian et al., 2007). The market environment is very changing, but in terms of soft drinks some aspects of the environment such as the anti-sugary drinks and more are strong trends. It is necessary to consider such trends and lose others.
In terms of point pricing, some strategies could be incorporated too, such as the law of three. Now according to the law of three, different models of the same product could be presented such that there is a low range model, a high range model and a medium range. Usually people will feel that the medium range model is usually the safest and would go and get that product. So pricing ranges could be created and the different ranges could be marketed.