Beas Pricing Dilemma

I. Point of View We consider Ms. Bea Lim’s perspective, the Marketing Assistant of Prime Meat, Inc. as our point of view. She is the one envisioning on the pricing strategy formulation that would have a long-term beneficial effect to the company.

II. Market Situation Analysis
A. Opportunities-Threat Analysis
1. Opportunities
Strategic Location - The location of Prime Meat, Inc. is Santo Tomas, the town next to the capital city.
Large Market Potential - For tocino (89.312 metric tons per month) and hotdog (95.14 metric tons per month) products.
2. Threats
Competing brands - There are many brands that have more or less the same offering and quality to their products.
Competitiors: Lipenos Pride, Carmen’s, Emma Homemade Meat Products, Tita’s, Mekeni, and Pampanga’s Best.
Low differentiation of the products.
Market Share – The consumer do not consider Prime Meat Hotdog as a favorite hotdog brand.

B. Strength-Weakness Analysis
1. Strengths
AA accreditation
Discount offerings
Good promotion
Good survey result
Increase in production volume
Regular dealers
Separation from mother plant
Transport of products by branches
2. Weakness
Popularity in the market
Price correspondence in quality
Small scale production

C. Product Life Cycle
1. Prime Meat Tocino: Growth stage since it already follows Pampanga’s Best. Objective: Improve market penetration ahead of competition.

2. Prime Meat hotdog: Introductory stage since it is not included in the set of favorite brands. Objective: Persuade consumers to buy the product.

D. Target Markets Class B to C income group levels – Their main consumers are the members of LCM Cooperative.

E. Product Positioning
1. Price Aspect: Prime Meat Inc. products are currently positioned lower compared to other brands.
Result: Prime Meat Inc. is perceived as “Low quality product” because some consumers associate low price for a low quality.

2. Product Aspects: Prime Meat tocino is considered next favorite brand for consumers next to