Price

The price of vodka is very important. I believe it directly affects how the consumer sees your product. An expensive bottle will make the consumer think it is a fine vodka and cheap bottles are not for someone with refined taste in vodka.

"Setting the right price is one of the marketer’s most difficult tasks. A host of factors come into play. But finding and implementing the right price strategy is critical to success." ( Marketing: An Introduction pg. 275).

When I shop for vodka I usually look at Smirnoff as the midpoint between cheap vodka and the expensive stuff. I would like my product to be sort of a competitor to their company. I want our prices to be close enough to theirs as possible.

“Competition-based pricing involves setting prices based on competitors’ strategies, costs, prices, and market offerings. Consumers will base their judgments of a product’s value on the prices that competitors charge for similar products. In assessing competitors’ pricing strategies, the company should ask several questions. First, how does the company’s market offering compare with competitors’ offerings in terms of customer value? If consumers perceive that the company’s product or service provides greater value, the company can charge a higher price. If consumers perceive less value relative to competing products, the company must either charge a lower price or change customer perceptions to justify a higher price.” (Marketing: An Introduction pg. 280)

Given the fact that our vodka has a little something extra compared to Smirnoff and other's like it, I would say it is safe to raise the price slightly above theirs. I believe this is good competition based pricing as well as giving our vodka the appearance of being a better choice of Smirnoff.

Fizz Vodka will cost $18 for a large 1.75L bottle in retail liquor stores.