The market for turkey products is large. If a major producer of turkeys were to introduce a boneless fresh turkey wrapped around spicy dressing, most of the large market for this new product would be aware of its existence. The market is price sensitive, and there is some potential competition. What would be the appropriate strategy?

Question

Quizplus · Accepted Answer

Penetration pricing would be the most appropriate strategy in this situation. This is because the market is price sensitive and there is potential competition. By setting a low price for the new boneless fresh turkey wrapped around spicy dressing, the producer can quickly gain market share and attract customers away from competitors. Additionally, this strategy can help to create buzz and generate interest in the new product, which can lead to long-term success. Once the product gains a foothold in the market, the producer can gradually increase the price to improve profitability.

The Market for Turkey Products Is Large