Waley Eh

LUMINOUS BLOOM
MIDTERM PROJECT IN MKTG P102
BSBA 1A (Group 4)
Name(s):
Buco, Jomer P.
Guttierez, Angelica N.
Pacia, Marjorie P.
I. Compute the Production Cost of the Product
Materials Quantity Price

Disposable Spoon 36 pcs ₱ 28
Empty Bottle 3 pcs ₱ 30
Wire 1 roll ₱ 30
Carton 1 box ₱5
Yarn 1 roll ₱ 11
Glue Stick 2 pcs ₱ 10
Double Sided Tape 1 pc ₱ 15
Spray Paint 1 pc ₱ 50
Total ₱179
II. What type of Pricing Strategy you are going to use? Why?
We are going to use Cost Plus Pricing, Penetration Pricing, and Value-Based
Pricing.
Cost Plus Pricing is a straightforward method where we calculate the total

cost of production and add a desired profit margin. This can make pricing
decisions easier and more transparent. By using this strategy, we ensure that
all our costs and overhead expenses, are covered. This can help in avoiding
any losses and ensuring a healthy bottom line. Cost plus pricing allows us to
stay competitive in the market by ensuring that our pricing is at least covering
our costs while also providing a profit margin. This can be useful when the
market is price-sensitive.
Penetration Pricing can help us quickly establish a presence in the market for
recyclable lamps. By setting a low initial price, we can attract customers and
generate interest in our product. A lower price point can entice customers to
try our recyclable lamp, especially if they are price-sensitive or unfamiliar with
the product. This can help us acquire new customers and build brand loyalty.
Penetration pricing can give us a competitive advantage by undercutting
competitors' prices and gaining market share. It can also deter potential new
competitors from entering the market. By offering the product at a lower
price, we can raise awareness about the environmental benefits of our
product. This can help educate consumers and differentiate our brand in the
market.
Value-based Pricing allows us to highlight the unique features of our product,

such as its sustainability, durability, and does not consume electricity. By
emphasizing the value that our product provides, we can differentiate it from
competitors and justify a higher price point. Pricing our product based on the
value it delivers can create a perception of quality and premiumness among
customers. This can attract environmentally-conscious consumers who are
willing to pay a higher price for products that align with their values. By
focusing on the benefits and advantages of our product, we can justify a
higher price and potentially increase our profit margins.
III. Who is your target market and the location where you are going to sell your
product?
People in Apalit Pampanga who are in the 15–50 age range are our
target market. People who are looking to add low-maintenance and long-
lasting beauty to their homes. That appreciate the aesthetic of flowers but
prefer to not replace them frequently. Offices, restaurants, hotels, and retail
spaces that use floral arrangements to enhance their ambiance without the
regular expense or maintenance required by real flowers. And families
looking for long-lasting floral options to commemorate their loved ones. Those
looking to enhance the appeal of properties on the market with welcoming,
attractive decor that requires minimal upkeep.
IV. Who are your competitors and compare your pricing with them
Our competitors is Online Marketplaces, DIY and Craft Supplies Sellers,
and Fresh Flower Vendors. Compare on our pricing, Our product is more
affordable but has a good quality. This product is low maintenance, and
year-round availability. This flowers may not offer the natural scent or the
tactile experience of fresh flowers or live plants, but the practical benefits
make them a valuable option for many consumers and decorators looking
for durable, maintenance-free floral arrangements.
V. How did you compute your product price?
We compute our product price by considering factors. Firstly, the cost
of production must be carefully calculated, encompassing expenses like
materials, and overhead costs associated with manufacturing. Additionally,
assessing the perceived value of our product to customers, based on factors
such as quality, branding, and unique features, influences the price
customers who are willing to pay, ultimately shaping our pricing strategy. By
carefully evaluating these two factors, businesses can effectively compute
the optimal price for the products.
VI. What are your basis?

We use value based pricing and cost based pricing as the basis in
pricing our product, because value based pricing is the strategy involves
setting prices based on the perceived value of a product or service to the
customer rather than solely on the cost of production or competitor prices. It
focuses on what customers are willing to pay for the benefits they receive,
which can vary depending on factors such as brand reputation, quality, and
unique features. On the other hand, cost-based pricing sets prices by
considering the cost of production plus a markup. Companies may choose to
use one or a combination of both methods depending on their market
strategy and the nature of their products.

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LUMINOUS BLOOM

MIDTERM PROJECT IN MKTG P102

I. Compute the Production Cost of the Product

Materials Quantity Price

Cost Plus Pricing is a straightforward method where we calculate the total

Value-based Pricing allows us to highlight the unique features of our product,

VI. What are your basis?

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