Price Strategy And Estimate Of Price Elasticity

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Price Strategy and Estimate of Price Elasticity Now looking at the three marketplaces that we have chosen to explore for our product, we conclude that in terms of consumer behavior, buying habits, values and concerns, these three marketplaces are totally different from each other. It is very evident that each region requires a separate pricing strategy and so that is what we are going to follow in this global plan of our company. Another factor that we need to keep in mind is the cultural and economic realities of these marketplaces and consumers while pricing our products. Let us begin with the pricing for the European Union market Spain. This is a rich market which is centered around good quality and ready to spend the money asked for …show more content…

Similarly, if the price is low the demand shoots up dramatically. We as a confectionary company needs to take advantage of this consumer behavior and economic reality in China and among the people of China. Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product. Once the consumers like the product and realizes it is good quality, then they accept the product and the low pricing help the product create some buzz in the market and have some good techniques. Similarly, for Latin America it has been interesting to find out that the people in this region are focused on value yet they do not mind paying the appropriate price for a product if they know it is good. The price elasticity of demand of people in this region is just moderate which is good for our product. Thus, we will follow a moderate pricing strategy in this respect to ensure the best possible results from the consumer in this market to ensure that product gets successful in this new market.
Part D: Manufacturing/Operation/Supply Chain We are all aware about the importance of supply, manufacturing and operations chain for any business. It becomes even more important if we are crossing the borders and entering international marketplaces as we are

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