The document discusses Carolina Lunker Sauce, a fishing attractant created by Russ Cobb. It has several advantages over other attractants such as being water soluble, using timed-release technology, and being non-staining. However, Russ Cobb was struggling to sell it at $14.95. A company called Cabela's offered to buy it if the price was lowered to $7.99. A table shows that pricing it at $10.99 could result in the highest profit. The summary recommends negotiating a higher price with Cabela's and lowering variable costs to further increase profits for this new and effective product.

1. MD IMTIAZ KHAN (13DM058)
SAYAN CHANDRA(13DM016)
ASHISH ORAON(13DM060)
GRACE NATHANIEL(13DM004)

2.  Russ Cobb founder of Carolina Lunker
sauce.
 Carolina Lunker Sauce, a fishing attractant. It
is better than other attractants in the market.
 It was water solube , creating lifelike scent
trail.

3.  It incorporated timed- released technology.
 The attractant stuck to the bait for around an
hour saving time and money.
 It was non staining and therefore easy to clean
unlike other attractant in the market.
 Was available in 4 scent garlic , menhaden,
crawfish and threadfin shad.

4.  As Russ Cobb was struggling for the product
to sell but could not due to it’s high price
$14.95.
 The people believed that the attractant didn’t
work to that extent.
 Cabella offered to buy this product if they sold
it for $7.99.

5. M.R.P. /
Detail
$7.99 $10.99 $11.99 $12.99 $14.95
Fixed cost 2.67 $ 2.67 $ 2.67 $ 2.67 $ 2.67 $
Variable
cost
4 $ 3 $ 4 $ 4 $ 4 $
Cost 5.67 $ 5.67 $ 6.67 $ 6.67 $ 6.67 $
40 % Margin 3.19 $ 4.39 $ 4.79 $ 5.19 $ 5.99 $
Total cost 8.86 $ 10.06 $ 11.46 $ 11.86 $ 12.66 $
Profit
( M.R.P. – TOTAL
COST )
( 0.87 ) $ 0.93 $ 0.53 $ 1.13 $ 2.33 $

6.  Carolina Lunker sauce is a better product than
other attractant currently available in the
market.
 Needs a product differentiation.
 Core competence of product.
 Competitive advantage.

7.  The price of the product needs to be priced at
$10.99 for huge bulk orders (V.C. = 3 $ ) and
rest at 11.99 $ .
 Further by reducing the variable costs they can
increase the profit.
 It is a new product in the market with more
efficiency and competence.
 Russ Cobb needs to renegotiate with the price.