See instructions below in description Case Study

See instructions below in description - Case Study Example This translates to 75 cents as the per unit variable goods leading to profits of per pack profit of $ 5.50. Despite the high fixed costs the alternative is anticipated to sell the product to increase both market share and improved sales. In addition to this, the firm considers to use coupons and free gifts to promote the cigarette in order to achieve the price cut decision. However, decision is not the best since it is prone to unlikelihood of meeting the targeted price in the market. Variable costs in production may be a challenge in attaining price cuts. It may even make the firm operate at a loss (Nagle, Hogan & Zale, 2014). Philip Morris may consider rebranding its Marlboro cigarettes and market it as a new brand. This may involve changing the brand name, design, flavor and other attributes of the cigarettes to bring a differentiated appeal to the customers and competitors. Changes in the logo, name and flavors of the cigarettes are the key attributes that the firm ought to consider. In addition, its packaging may integrate a colorful wrappings and packets that bring a more attracting appeal to the users. Different flavors may be used to lure different customers to different flavors of choice. On another hand, the firm may consider rebranding its corporate name to shed its name against its rival firms. Price cuts are effective in attracting more users of a commodity. It is a marketing strategy that offers a better chance to a firm that is operating under a large scale. Reducing its prices as compared to its competitors enables the firm selling more and reaching a bigger number of its compelling customers (Clow & Baack, 2012). In such a case, the firm benefits from economies of scale and long-run profits. This technique may be disadvantageous to competing firms as they may be locked out of the market. In addition, it may induce monopoly in an industry that may be not beneficial to