Marketing Study Case : Diesel

Diesel is the fuel of choice in the European automotive market, due to the fact that it provides high-torque, efficient alternative to gasoline. The American view of diesel, however, is much less positive overall – most Americans remember the noisy, smoky diesels of decades past and know little about the quiet, clean diesels of the present. One of the best arguments for the switch to diesel fuel in the United States is that a fueling infrastructure is already in place, as transportation companies rely on diesel fuel to distribute goods across the United States (Is Diesel). This would negate the need to construct an entirely new infrastructure, which could cost hundreds of billions of dollars. Diesel is also considerably more environmentally friendly than gasoline, due to the fact that it is less refined (a process which uses large amounts of energy) and that it is more efficient than gasoline (ACEA). The combustion process in a diesel engine, which exerts high pressure on the fuel to ignite it, is the source of the motor’s increased

Diesel is going to be the fuel that will control the world just like gasoline is today. Clean diesel is something that seems unreachable but it is closer than people think. Diesels now are Cleaner than ever and it it going to out do any other form of power for cars. Although other fuels and forms of power produce no emissions, diesel engines can be made to produce less harmful pollutants and be more efficient. There may be a few negative characteristics about diesel engines. But, the positive characteristics that they have out weight the bad things about them. To keep the diesels clean the process of how they work needs to be known.

When a business can provide a lower cost, then the business can have the ability to lower their price. Providing a better pricing system, along with sharp value products can only increase the chance of growth and customers’ overtime.

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.

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

When trying to determine which promotional strategy a company should use many factors need to be taken into consideration. The company must to decide who their target market is and what message they wish to deliver to the target market. Once this has been decided, the company should research their target market in order to determine which promotional strategy will work best to reach their target audience.

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

Pricing your products is actually one of the hardest decisions for a new business owner to make. Make the prices too high and no one will want to buy. Make the prices too low and you can't make a profit. Not knowing how to price products properly is a common challenge for new business owner. And it is one that can make or break a company.

Pricing is the most important aspect of the marketing mix. Price is the only element of the marketing mix, which produces a turnover for the organization. Pricing plays a crucial role in the product consumption. Pricing products too high or low results in loss of sales for the company. The pricing of each organization based on its corporative objective.

b) How do you see the implications of Supply and Demand theory show up in your company’s strategies?

By having this advantage, the low cost company is able to do a number of things to maintain or increase its market share.  It can invest more in marketing.  It can pay for better positions in retail stores relative to its higher cost competitor.  It can lower price, thus squeezing its competitor’s margins and profits.  It can invest more in research and development, allowing it to improve the performance of its product.

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

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.

To increase sales and diversify in the market, they also have a reasonable pricing policy along with the premium price ranges.

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).