Bayer Schering Pharma AG, Germany owns Alka-Seltzer, which was launched in 1931 and was meant for aid of minor aches, pains, irritation, fever, headache, heartburn, bitter abdomen, indigestion, and hangovers. Alka-Seltzer Plus was a spin-off of the unique drugs, meant to alleviate colds and flu.
The corporate has not too long ago launched a brand new and improved Alka-Seltzer Plus, as described on this TV advert (Hyperlinks to an exterior web site.)Hyperlinks to an exterior web site..
The advert exhibits that Alka-Seltzer Plus can battle congestion, in contrast to NyQuil.
Clarify how Alka-Seltzer Plus has been high quality and price-positioned in an current market. In your opinion, has Bayer positioned their product appropriately out there for chilly and flu signs aid merchandise? Would you advise Bayer to make use of a skimming or a penetration pricing technique? Clarify your reasoning.
How do you suppose Proctor and Gamble, the corporate who produces Vicks NyQuil, would reply to the advert?
Guided Response: In 300 phrases or extra, please, present your response to the above dialogue query. If Bayer is at present making regular earnings on a lot of the merchandise in its product line, however is making pure earnings on its new Alka-Seltzer Plus with decongestant, what ought to Bayer do to extend its earnings?