1.

What pricing strategy should Atlantic Computers implement to price the Atlantic
Bundle?

Value-in-use pricing strategy. This strategy would demonstrate the savings to the customer from
purchasing the Atlantic Bundle versus buying four Ontario Zink server and it will provide a better
foundation for the sales strategy. They can show more value to the customers by showing the
monetary benefits in using their server.

2. Which market should be targeted?

The basic server market is new and growing at a high pace and Atlantic has developed a server
Tronn which is going to perform much faster with the PESA tool. As they have a good offering
they can target the customers who need base servers to run their operations.
Additionally, customers in the web-server and file-sharing application segments appeared to be
the ones that would benefit from the tool, therefore company should focus on targeting these
customers.

3. How are customers likely to respond?

For long period Atlantic computers have been providing software tools for free with servers,
some customers might get confused and question about the company's offering. For this the
salespeople will need training to show customers exactly the value they will be getting.
Atlantic Computers will have to demonstrate to customers that the PESA software tool essential
doubles and possible quadruples the number of basic Tronn servers.

4. How will Ontario react to the ‘Atlantic Bundle’ strategy?

● Ontario’s top management might decide to lower the price of its servers in order to keep
their market share but this will decrease their profits and they won't be able to survive in
the market for long.
● They might come up with an identical offering, a free or paid software tool that enhances
the performance of the servers.

5. What is a challenge in using Value-in-use pricing ? How will you overcome?

For long period Atlantic computers have been providing software tools for free with servers, it
will take some persuading to get veteran salespeople on board with the value-in-use pricing
method. It will require to demonstrate the savings to the customer from purchasing the Atlantic
Bundle versus buying four from Ontario Zink servers (i.e., identifying the savings the customer
would realize from having to buy fewer servers, utilize less labor and electricity, and secure
fewer software application licenses).
By training the salesperson, he could effectively demonstrate the value created for the customer
and overcome the potential objections that the customer was likely to raise.