Pricing can play an important role in the success or disaster of any product. Too high a price and the product will fail; too low a price and not enough profits will be made to sustain business operations (Hisrich, Peters, & Shepherd, 2014). The key is to make the customer think that they are paying exactly the right price for the product. Anything else though in this regard means the product is not positioned well in the mind of the consumer. First of all, Gril-Kleen will have to decide on what sort of strategy it needs to pursue. This strategy is decided on three factors namely costs, margins and competition.
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems.
The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.
Price is one of the most important components in regard to a marketing mix. Price is important to virtually all consumers although some concern themselves with perceptions of value as well. Kudler is positioned in the higher end of the price spectrum with a "premium" product position. This position requires Kudler to
Distribution Business Unit consists of mobile phone retail sales and online sales, insurance options and service revenues. Retail is the main business within this division. All other streams either originate from retail or are designed to support its growth.
In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of the people who buy the products are people who need these tools to make a living such as carpenters, electricians, plumbers, roofers, and general remodelers. Black and
Black and Decker (B&D) was founded in 1910 by Duncan Black and Alonzo Decker. By 1917, B&D had world’s first patent in portable power drills. Since then, B&D has been the world’s largest producer of power tools and power tools accessories. The power tools market in 1990 in the US mainly comprised of three segments-Professional Industrial Tools (PI), Professional-Tradesmen (PT) Tools and Consumer tools. B&D was a market leader in America power tools industry worth $1.5 Billion, with a share of 30%. It was number one in PI and consumer segments with a share of 20% and 45% respectively. However, its share in the fastest growing market segment of Professional-Tradesmen Tools was only