• Identify the target market for Atlantic Computer’s products.
For the high performance servers that “Atlantic Computers” was famous for, they targeted huge firms and organizations who required these for complex application such as supply chain management, ERP and business intelligence.
The target market for Atlantic Bundle (Tronn + PESA) can be defined as people in the web server and file sharing application segments, especially those who preferred low end systems to share work. It can also be defined as people who would prefer buying fewer servers to fulfil their requirements such as hosting a website or file sharing, people who wanted to save their costs by buying fewer servers. For this Atlantic Computers planned to use first and second …show more content…
Value based pricing:
This type of pricing strategy is mostly used when the product or service is unique and highly differentiated.
Atlantic Computer's new product Tronn along with its software tool PESA provides the speed 4 times a basic server. As Ontario's basic server Zink performed approximately at the same level as Tronn, the value the customers can get by buying Tronn can be found out by comparing its cost with the cost of 4 Zink servers.
Beta Test 1 Tronn Servers - with PESA 4 Basic Zink Servers
Price per Server 2000 1700*4 = 6,800
Electricity 250 250*4 = 1,000
Software Application License 750 750* 4 = 3,000
Server admin’s annual salary 80,000 80,000
Total Cost 86,3000 90,800
Savings in case of Tronn 90,800-86,000 = 7,800
Price Charged for Atlantic Bundle 4000 + (50% * 7,800) = 5,900
Price charged for the Atlantic bundle As Per Beta Test = …show more content…
This is because they have been aware of the Ontario Zinc servers that are currently ruling the market for low end servers and are priced considerably lower than Atlantic Bundle. Even though Atlantic Computers claim that their product is going to be 4 times faster, customers don’t know about the reality and cannot buy such an expensive product just to test. As people will be unaware of the capabilities of PESA they would never prefer buying it and letting go the famous Zink. People would not trust the company that claims to be saving costs of their customers, and charge a super high price for that.
Atlantic Computers should emphasize on the fact that a server with PESA on it can end the need of buying many servers to fulfil a job, this will cut their labor, electricity and software license costs and will be very cost effective in the long run. With this they should also focus on the divisibility of the product. They should try to showcase tat PESA with Tronn is a fast solution to their problems. In short, they should try to show that PESA will be a driver for low
For the high performance servers that “Atlantic Computers” was famous for, they targeted huge firms and organizations who required these for complex application such as supply chain management, ERP and business intelligence.
The target market for Atlantic Bundle (Tronn + PESA) can be defined as people in the web server and file sharing application segments, especially those who preferred low end systems to share work. It can also be defined as people who would prefer buying fewer servers to fulfil their requirements such as hosting a website or file sharing, people who wanted to save their costs by buying fewer servers. For this Atlantic Computers planned to use first and second …show more content…
Value based pricing:
This type of pricing strategy is mostly used when the product or service is unique and highly differentiated.
Atlantic Computer's new product Tronn along with its software tool PESA provides the speed 4 times a basic server. As Ontario's basic server Zink performed approximately at the same level as Tronn, the value the customers can get by buying Tronn can be found out by comparing its cost with the cost of 4 Zink servers.
Beta Test 1 Tronn Servers - with PESA 4 Basic Zink Servers
Price per Server 2000 1700*4 = 6,800
Electricity 250 250*4 = 1,000
Software Application License 750 750* 4 = 3,000
Server admin’s annual salary 80,000 80,000
Total Cost 86,3000 90,800
Savings in case of Tronn 90,800-86,000 = 7,800
Price Charged for Atlantic Bundle 4000 + (50% * 7,800) = 5,900
Price charged for the Atlantic bundle As Per Beta Test = …show more content…
This is because they have been aware of the Ontario Zinc servers that are currently ruling the market for low end servers and are priced considerably lower than Atlantic Bundle. Even though Atlantic Computers claim that their product is going to be 4 times faster, customers don’t know about the reality and cannot buy such an expensive product just to test. As people will be unaware of the capabilities of PESA they would never prefer buying it and letting go the famous Zink. People would not trust the company that claims to be saving costs of their customers, and charge a super high price for that.
Atlantic Computers should emphasize on the fact that a server with PESA on it can end the need of buying many servers to fulfil a job, this will cut their labor, electricity and software license costs and will be very cost effective in the long run. With this they should also focus on the divisibility of the product. They should try to showcase tat PESA with Tronn is a fast solution to their problems. In short, they should try to show that PESA will be a driver for low