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Case from journal
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Reference no. JIACS17-03-05
Subject category: Marketing
Published by: Allied Business Academies
Published in: "Journal of the International Academy for Case Studies", 2011
Length: 15 pages
Data source: Field research

Abstract

No one can ever truly be considered an expert in pricing … at least that’s the opinion offered by a consultant who was hired to help Tinya Meeker solve a particularly challenging pricing dilemma. It is clear that Modine Manufacturing needs to migrate from its dependence on cost-plus pricing policies to strategies that will effectively communicate their products’ superior value. However, Tinya is relatively new to the position of divisional sales manager and this is without question the most important decision she’s ever been asked to make. She’s narrowed her choices down to product-cost unbundling and value-based pricing as the two primary options. Modine employs more than 7,000 people worldwide and the consequences of her final decision could be far-reaching. The Case Synopsis and the Case Description should be removed before this case is assigned to a student or student group. This information could prejudice the minds of students. The primary subject matter of this case is pricing strategy within the context of an international global company that manufactures and sells thermal management products and systems to global OEM’s in the passenger, commercial and off-highway vehicle markets. As a seller of component parts to large multi-national manufacturers around the world, Modine faces competitive challenges and buyer demands that are formidable. The company needs to transition from its dependence on cost-plus pricing policies to strategies that will effectively communicate their products’ superior value. This case has a difficulty level appropriate for undergraduate senior level and graduate courses. This case is designed to be taught in one class hour and is expected to require two hours of outside preparation by students. This study would be most appropriate for use within the context of a Marketing Management or Marketing Strategy course.
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Abstract

No one can ever truly be considered an expert in pricing … at least that’s the opinion offered by a consultant who was hired to help Tinya Meeker solve a particularly challenging pricing dilemma. It is clear that Modine Manufacturing needs to migrate from its dependence on cost-plus pricing policies to strategies that will effectively communicate their products’ superior value. However, Tinya is relatively new to the position of divisional sales manager and this is without question the most important decision she’s ever been asked to make. She’s narrowed her choices down to product-cost unbundling and value-based pricing as the two primary options. Modine employs more than 7,000 people worldwide and the consequences of her final decision could be far-reaching. The Case Synopsis and the Case Description should be removed before this case is assigned to a student or student group. This information could prejudice the minds of students. The primary subject matter of this case is pricing strategy within the context of an international global company that manufactures and sells thermal management products and systems to global OEM’s in the passenger, commercial and off-highway vehicle markets. As a seller of component parts to large multi-national manufacturers around the world, Modine faces competitive challenges and buyer demands that are formidable. The company needs to transition from its dependence on cost-plus pricing policies to strategies that will effectively communicate their products’ superior value. This case has a difficulty level appropriate for undergraduate senior level and graduate courses. This case is designed to be taught in one class hour and is expected to require two hours of outside preparation by students. This study would be most appropriate for use within the context of a Marketing Management or Marketing Strategy course.

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Location:
Industry:
Size:
Large

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