MKT 571 week 4 team d
Running head: CHANNEL AND PRICING STRATEGIES
Channel and Pricing Strategies
Au’Shaunte’ Watts
University of Phoenix
Marketing, MKT 571
Pricing Strategy
Determining the right price is just one aspect of effective pricing. In order to implement a successful launch, analysis needs to be completed on the market share, demographics, sector and affordability. Any product will undergo competitive pressure sooner or later in the life cycle. Risk analysis should be done and mitigated before a product being launched in domestic or international market. Forecast for the demand is another key factor to be considered before making any pricing decisions.
Pricing objectives are based on increasing the market share, reducing the cost, increase the profit margin, and high quality. Pricing strategies are similar to one being followed McDonald’s. Pricing can be decided based on product lines such as value meal, promotional pricing such as two apple pie for $1, penetration pricing to capture the market, and value pricing to support the recession and increased competition such as dollar menus. For a global market, pricing strategies are difficult to standardize because of foreign exchange rates, local labor market, transportation costs, tax rules, foreign policy and contractual agreements such as franchising, foreign licensing and subcontracting. Company should adapt to local markets and change when conditions change. Burger King will decide the price in foreign market based on the location and income distribution. Goal is initially to attract middle and upper class citizens by undervalue the price less than to the price setup in U.S.
Company is moving toward value-based pricing while struggling with very challenging pricing circumstances. This process is difficult to manage and execute a value-based pricing strategy. Being a new product globally, company need to establish the most favorable introductory price. Pricing research is in progress to study using proprietary methods
Channel and Pricing Strategies
Au’Shaunte’ Watts
University of Phoenix
Marketing, MKT 571
Pricing Strategy
Determining the right price is just one aspect of effective pricing. In order to implement a successful launch, analysis needs to be completed on the market share, demographics, sector and affordability. Any product will undergo competitive pressure sooner or later in the life cycle. Risk analysis should be done and mitigated before a product being launched in domestic or international market. Forecast for the demand is another key factor to be considered before making any pricing decisions.
Pricing objectives are based on increasing the market share, reducing the cost, increase the profit margin, and high quality. Pricing strategies are similar to one being followed McDonald’s. Pricing can be decided based on product lines such as value meal, promotional pricing such as two apple pie for $1, penetration pricing to capture the market, and value pricing to support the recession and increased competition such as dollar menus. For a global market, pricing strategies are difficult to standardize because of foreign exchange rates, local labor market, transportation costs, tax rules, foreign policy and contractual agreements such as franchising, foreign licensing and subcontracting. Company should adapt to local markets and change when conditions change. Burger King will decide the price in foreign market based on the location and income distribution. Goal is initially to attract middle and upper class citizens by undervalue the price less than to the price setup in U.S.
Company is moving toward value-based pricing while struggling with very challenging pricing circumstances. This process is difficult to manage and execute a value-based pricing strategy. Being a new product globally, company need to establish the most favorable introductory price. Pricing research is in progress to study using proprietary methods