Do you consider your pricing strategy penetration pricing

Assignment Help Marketing Management

Reference no: EM133960378

Question

Product name: Choco bana frappe

Company: starbucks

Identify a market segment that you don't believe is currently purchasing the product that you have selected for this project. Maybe the product doesn't meet specific needs of this segment as well as the competitors' product meet their needs, or the product has features that don't appeal to this group. For example, a 2-seater Porsche likely doesn't appeal to a middle-class family of 5. Or, a high-priced cosmetic company offering anti-aging lotions, likely doesn't meet the needs of a female college student working 2 part-time jobs in order to pay for school and living expenses.

Come up with a new product idea that will meet the needs of the new segment you have identified. So, in the cosmetic example above, maybe you could suggest your new product as the following: A face cream that comes in fruit flavoured scents at a very affordable price.

Question : Pricing

1. Explain your pricing objective and why you selected this objective (Profit Oriented vs Sales Oriented vs Status Quo).

2. What is the recommended introductory price of your product? Justify why you selected this price. What did you consider, what research did you do, what was important to understand about the market and customer in order to come up with this price?

3. Do you consider your pricing strategy Penetration Pricing, Status Quo or a Price Skimming approach . Explain what the strategy is that you selected and why you selected that approach.

Reference no: EM133960378

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