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Atlantic Computer Case Assignment

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Atlantic Computer: A Bundle of Pricing Options Case Assignment
Benjamin Athens, Alayna Boyd, Amanda Ferguson, Jessica Harper, & Emily Wagman
MKT370W 11:00 a.m.

Introduction.
Atlantic Computer, a large manufacturer of servers and other high-tech products, is currently feeling the pressure of developing a pricing strategy for their product offering the “Atlantic Bundle”. Two markets exist in the server selling industry: traditional and basic. Atlantic is already a market leader in the traditional market with its product Radia, a price premium product. Atlantic is now looking to enter the basic market with its bundle offering. The basic market is new and fast growing- an opportunity that Jason Jowers, product manager of the Atlantic Bundle, knows he cannot miss. For the basic market, Atlantic has specifically developed a new server, Tronn. While Tronn is expected to be a success for mass sales in the basic market, Atlantic believes the key to marketing Tronn will be in bundling the server with a new software tool. PESA, Performance Enhancing Serving Accelerator, is proven to enhance Tronn’s server speed by four times. Atlantic however faces a bit of a moral dilemma with bringing PESA to market. Traditionally, Atlantic Computer has offered all software tools for free when sold in conjunction with their servers. In this case, the value of PESA is too great for Atlantic to not charge for its capabilities. The Atlantic Bundle will feature these two new product offerings packaged together under one mixed bundle price.
With this bundle offering Atlantic Computer is aiming to gain profit and maximize overall market share. Atlantic Computer will be competing in the basic market segment against Ontario Computer, Inc., a firm that has solely focused its sales on the lower-end market. Ontario commands 50% of the market share here with its Zink product

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