Effective Pricing Strategies For Purchasing Of New Products

This study focussed on effective pricing strategies for purchasing of New products a case study of Royalux by Hardis and Dromades. The objectives of the study are as follows.
To determine the methods used by Hardis and Dromades in setting prices for their new product – Royalux.
To determine how prices of Royalux affect its demand, position and market shares.
To find out how customers respond to different prices of different quality of products.
The scope of the study was limited to Enugu Metropolis. In sourcing for the required information, the researcher used both primary and secondary data which collected through oral interviews and administration of three sets of questionnaire one for the management and relevant staff of Hardis and Dromades, others for consumer and distributors. Bowloy’s formular was used to determine the sample size of consumers while Topmans formular was used for Distributors whist a census survey was used for the management/ relevant staff of Hardis and Dromades. Data were organized, analysed, interpreted and summaried using tables, percentages, pie chart and histogram, and chi-square statistics were used to test the three hypotheses formulated.
Based on the analysis, the following finding were made;
That Hardis and Dromades products become a household name in Enugu.
That the firms cost of production was given the highest consideration in setting price for Royalux.
The high cost of transportation and handling cost contributed to increase in price of Royalux
That the wholesales and consumer of Hardis product were encourage to a reasonable price to buy Royalux.