Destin Brass Products Co

Bharadwaja(384) | Shuba Deepthi(385) | Praveen(389) | Chandra Mohan(388) | Vipul(427) | Pranay(406)

Action Recommended to the Destin Brass Products Co.

The prices of flow controllers must be gradually increased from $97 to $155 so that Destin Brass
Products Co makes planned profit margin of 35%. Assuming competitors also follow the prices set by
the company, there would be no loss of market share in the long run. The prices of pumps can be
reduced to match competitors’ price till $74.5 and still maintain planned profit margin of 35%.

Way to implement

The strategy can be implemented either using competitive pricing strategy or Cost-plus pricing
strategy. In case of Pumps, as we are not market leaders competitive pricing strategy can be used to
match competitors. But in case of flow controllers, we can follow cost plus approach as we are the
market leaders.