ANALYSIS OF STRATEGIES ADOPTED BY KENYA SEED COMPANY LIMITED IN COMPETITIVELY SUPPLYING QUALITY SEEDS
Jomo Kenyatta University of Agriculture and Technology
(Kitale CBD Campus)
BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT 4.2
HPS 2407: TACTICS AND OPERATIONS IN PURCHASING & SUPPLIES
ASSIGNMENT 2.
HD211-C008-0104/2010: LEONARD OUMA MRONGO
CONSIDERATION FOR PRICING IN BUYING
Price
Can be defined as a component of an exchange or transaction that takes place between two parties and refers to what must be given up by the buyer in order to obtain something offered by the seller
Buying
To acquire the possession of, or the right to, by paying or promising to pay an equivalent, especially in money; purchase. Can also imply obtaining or acquiring property or goods for a price.
Factors influencing pricing
Internal factors
i) Corporate and marketing objectives of the firm ii) The image sought by the firm through pricing iii) The characteristics of the product iv) The stage of the product in its life cycle
v) Use pattern and turnaround Rate of the product vi) Costs of manufacturing and Marketing vii) Extent of distinctiveness of the product and extent of differentiation practiced viii) Other elements of the marketing mix and their interaction with pricing ix) Composition of the product line of firm and whether buyers buy some of the products as a bundle
External factors
i) Market characteristics (these relate to demand, customer and competition) ii) Price elasticity of demand of the product in particular iii) Buying behavior of the customers of the product iv) Bargaining power of major customers
v) Bargaining power of major suppliers vi) Competitors’ pricing strategies vii) Government controls/ regulation on pricing viii) Other relevant legal aspects ix) Societal views
x) Understanding reached, if any, with competitors/price cartels
Pricing Strategies
There are five general pricing strategies:
Product Line: Setting price steps between product line items
Optional Product: Pricing optional or accessory products
(Kitale CBD Campus)
BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT 4.2
HPS 2407: TACTICS AND OPERATIONS IN PURCHASING & SUPPLIES
ASSIGNMENT 2.
HD211-C008-0104/2010: LEONARD OUMA MRONGO
CONSIDERATION FOR PRICING IN BUYING
Price
Can be defined as a component of an exchange or transaction that takes place between two parties and refers to what must be given up by the buyer in order to obtain something offered by the seller
Buying
To acquire the possession of, or the right to, by paying or promising to pay an equivalent, especially in money; purchase. Can also imply obtaining or acquiring property or goods for a price.
Factors influencing pricing
Internal factors
i) Corporate and marketing objectives of the firm ii) The image sought by the firm through pricing iii) The characteristics of the product iv) The stage of the product in its life cycle
v) Use pattern and turnaround Rate of the product vi) Costs of manufacturing and Marketing vii) Extent of distinctiveness of the product and extent of differentiation practiced viii) Other elements of the marketing mix and their interaction with pricing ix) Composition of the product line of firm and whether buyers buy some of the products as a bundle
External factors
i) Market characteristics (these relate to demand, customer and competition) ii) Price elasticity of demand of the product in particular iii) Buying behavior of the customers of the product iv) Bargaining power of major customers
v) Bargaining power of major suppliers vi) Competitors’ pricing strategies vii) Government controls/ regulation on pricing viii) Other relevant legal aspects ix) Societal views
x) Understanding reached, if any, with competitors/price cartels
Pricing Strategies
There are five general pricing strategies:
Product Line: Setting price steps between product line items
Optional Product: Pricing optional or accessory products