Glitzz: Devising a Pricing Strategy
08
Fall
Marketing Individual Assignment 5
08
Fall
Marketing Individual Assignment 5
Glitzz: Devising a Pricing Strategy
1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors and comment on the range of prices that can be set for Glitzz.
Price is the amount of money given in exchange for the ownership or use of a good or service. Firms, like Glitzz need to consider the amount of money that consumers are willing to give up in exchange for their products.
In making pricing decisions, firms, like Glitzz must first consider a few factors:
Company Factors
Pricing Objectives
Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These objectives guide the pricing strategies.
The company is currently in the beginning stage of marketing the Glitzz product.
The passage also mentions long-term plans for developing brand awareness and preference.
Hence, Glitzz’s current pricing objectives seem to be * Increase Product Sales * Capture Market share. * Long-term profits Increasing sales revenue can be an indirect objective to achieve the objective of capturing the market share and thus long-term profits
According to the case passage, the industry of the jewelry spray cleaners appears to be oligopolistic, with a few dominant producers, Brilliant Restorer and Connoisseurs.
Thus, to enter the market, Glitzz must carry out 2 strategies.
* Product differentiation
Glitzz can be differentiated through packaging, which has been mentioned in the passage. The seller can also consider differentiating its method of application of the solution; i.e. spray.
* Penetration pricing strategy
Secondly, Glitzz should use a penetration pricing strategy by setting a lower initial price, which can appeal to the mass market. Glitzz might earn a smaller profit margin but it is able to capture the volume of the mass consumers. This strategy may not maximize current
Fall
Marketing Individual Assignment 5
08
Fall
Marketing Individual Assignment 5
Glitzz: Devising a Pricing Strategy
1. What factors influence the pricing decisions for a product such as Glitzz? Analyze these factors and comment on the range of prices that can be set for Glitzz.
Price is the amount of money given in exchange for the ownership or use of a good or service. Firms, like Glitzz need to consider the amount of money that consumers are willing to give up in exchange for their products.
In making pricing decisions, firms, like Glitzz must first consider a few factors:
Company Factors
Pricing Objectives
Pricing Objectives involve specifying the role of price in an organization’s marketing and strategic plans. These objectives guide the pricing strategies.
The company is currently in the beginning stage of marketing the Glitzz product.
The passage also mentions long-term plans for developing brand awareness and preference.
Hence, Glitzz’s current pricing objectives seem to be * Increase Product Sales * Capture Market share. * Long-term profits Increasing sales revenue can be an indirect objective to achieve the objective of capturing the market share and thus long-term profits
According to the case passage, the industry of the jewelry spray cleaners appears to be oligopolistic, with a few dominant producers, Brilliant Restorer and Connoisseurs.
Thus, to enter the market, Glitzz must carry out 2 strategies.
* Product differentiation
Glitzz can be differentiated through packaging, which has been mentioned in the passage. The seller can also consider differentiating its method of application of the solution; i.e. spray.
* Penetration pricing strategy
Secondly, Glitzz should use a penetration pricing strategy by setting a lower initial price, which can appeal to the mass market. Glitzz might earn a smaller profit margin but it is able to capture the volume of the mass consumers. This strategy may not maximize current