Case Study Of Specs Optical Inc.

In addition to these objectives, some of the competitive advantages that help the company maintain its leading position in the marketplace are highlighted in Exhibit II.

When it comes to pricing we always strived to provide one of the lowest prices in the market. We decreased product prices by $0.50 on each product each year to appeal to consumers. Since providing a low cost product was one of our strategic goals we did not stray from decreasing prices. Looking back, perhaps we shouldn’t have been so loyal to our strategy when we were unable to turn a profit. While a strategy is important to stick to, being a profitable company is the ultimate goal.

designed to promote product Aldo to meet customer demand in the High End, Performance and

From the courier, it is clear that the products with the highest customer awareness have the higher market share. With that in mind, we will adjust the promotion budget for the low end products to increase our customer awareness which in turn will increase our sales if we continue to compete based on low prices. Because we are featuring our low end product, we think that this product will remain in the cash cow position, never becoming a star through an increase in market growth rate. The only way that this product will ever become a dog is if the price of the product

This is a strategy that can apply to products with consumable supplies. This is where the pricing at high prestige levels, otherwise they will not sell; customers equate higher quality with higher prices.

The strategy was to offer low price in the market which led to setting the lower prices. Niche marketing was used in setting the prices to be offered for the different market segments. Products with market target specifications are availed. The low-cost strategy was applied to set up the budget of the firm. It would use the least possible production budget to cut the price of products. The combination of strategies assists in maintaining a key position in a market. Compete effectively with opponents.

• The company should find effective way to communicate about the product in public to boost up the sale of existing product but this plan does not work every time and it can be tricky also.

The pricing strategy that I chose is marketing objectives. Our company will deliver on this strategy to this stand by competing with our competitor’s stand. Our competitor, Jimmy, manages the Lemonade Stand “Liquid Yellow” charges $1.50 for one cup of lemonade. However, they use artificial ingredients, such as artificial flavoring and coloring, white sugar, etc. My company decided that we want to have a price that is higher than Jim’s price. We decided that we want to charge $2.00 for a cup of lemonade. We decided to charge this price because unlike Jim’s stand, we use all natural ingredients, which cost more than artificial ingredients and are healthier for you than artificial ingredients are. That is my company’s pricing strategy.

We promote the products and services in our stores through direct mail advertising, radio, television and secondary print media advertisements. Our advertisements emphasize such features as product and name brand selection, prompt delivery and the absence of initial deposits, credit investigations or long-term obligations (Martin, 2015).

The objective of a company using a low-cost provider strategy is to sell its products at the lowest possible price to attract customers. This is known as a price advantage. Companies using this strategy will typically earn low margins but achieve high sales volumes. Low-cost providers aim their products at the broad market, making them appeal to as many consumers as possible to achieve high sales volume.

* Long term effects of its pricing strategy (the company may not be able to continue if such pricing structure remains)

Sometimes it’s not so important that your product fits the exact needs of the segment you target; rather, it’s vital that customers perceive that you do, even if it’s not true. In order to achieve this, the proper amount of advertising and sending the appropriate message are both vital.

A successful competitive strategy focus on creating value to customers, by efficiently use and integrate of these components.

The definition of Premium pricing strategy is, using a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries, free delivery-pick- up service, service quality, special chemical free products and prestigious presentation.

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).