Franz S.p.A

First order of business

to pursue a profitability aim in order to cover a high break even point due to

the high costs of the technology employed in the production process

Calculation of the weighted average price of our challengers

Chicken

& Eggs Fish

Fruits

& Veg Total

Equivalent prices for 60 pounds boxes (€) 0,57 1,08 0,42

Total market (units x 1000) 2.626 1.574 2.857 7.058

Weighted Average Price € 0,622936

Franz S.p.A

MINIMUM PRICE STRATEGY

Minimum price = € 0,52 €

Trying to match the figures of the production costs coverage and the

lower price possible avoiding to produce the good creating debt

Franz S.p.A

MEDIUM PRICE STRATEGY

Medium price = € 0,65

Amount obtained leaving from the weight average price that allows to achieve the

highest profitability level in the chicken and eggs - fish bins markets covering the losses in the fruit and vegetable

segment

Franz S.p.A

HIGH PRICE STRATEGY

High price = € 0,70

Maximum level of price preserving a minimum market share in the fruit and

vegetable sector and the highest price level to ensure a constant increase in

revenue

Franz S.p.A

PRICE STRATEGY CHOSEN

MEDIUM PRICE

€ 0,65

Estimation of the single bins price granting

the maximum profitability in the two markets with an inelastic price curve

(chicken and eggs, fish) and reducing the losses in the other market (fruit and

vegetables) more susceptible to a variation of the bins price

Franz S.p.A

Thanks for your attention