Rac's Pricing Strategy

Loyalty programs include frequent flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceived loss or cost when switching to a competitor. Most programs are able to get consumers to spend more money just to get to free or bonus item.

Of the four P’s in the marketing mix, the pricing strategy is arguably of primary importance. In fact, price is the only element in the marketing mix that generates revenue and drives profitability. The revenue generated by price is also essential to cover the cost of the other three P’s, namely, product, place, and promotion. Therefore, none of the other strategies in the marketing mix would be possible if a company’s pricing strategy does not generate revenue (Hill, 2013). Recognizing the critical importance of an optimal pricing strategy, Cabela’s implemented a SKU level profitability and price optimization system supplied by Revionics Inc. in 2013 (“2013 Annual Report”, 2014).

REI offers its customers multiple purchasing channels, including in-store, by phone, mail-order, or online at www.rei.com and www.rei-outlet.com. In-store customers can purchase products at its 138 stores located in 33 states (“Financial Information”, 2015). REI distributes ten million catalogs annually, which also serve to direct customers to REI.com and its brick-and-mortar stores (Spector, 2002).

American Eagle is defying a slump in teen retail, with sales rising 11% in the most recent quarter. The retailer has been taking several steps to avoid slipping sales, Phil Wahba of Fortune reports. A crucial component of this is avoiding heavily discounted clothing — a trend that's hurting competitors Abercrombie & Fitch and Aeropostale. While shoppers love discounts and good sales, too many of them can be detrimental for retailers. Constant heavy discounts can condition consumers to not want to pay full price.

By round 4, the tide had turned with team Andrews establishing market share and volume, as well as reductions in labor costs, that provided Andrews with an ROS of 7.3% compared to Digby’s ROS of 4.8%. By round 6, the disparity had grown with Andrews achieving an ROS of 15.4% compared to Digby’s ROS of 5.9% The trend would continue as the Niche Cost Leader strategy evolved with increased production and volume of sales compared to better margins but much lower volume for Digby. Though the higher end products could provide profit, the volume available in that market couldn’t provide enough profit to offset the lack of volume compared to team Andrews.

* Even keel of supply and demand keeps the company moving forward, largely due to fair, competitive pricing that negates negative economic factors

First, the company offers mail-in-rebates to encourage customers to buy a particular product in a lower price. However, Lowe’s could still make higher profits because not all customers who made the purchase submit a rebate. Customers might value their time more and just accept the out-the-door price. Lowe’s can use the rebate offer to collect customer’s data from the rebate form. There are a couple of advantages than can be gained by collecting customer data. By looking at purchase history, Lowe’s can tailor their promotions according to customer demand. Moreover, by having customer’s contact information, Lowe’s can send out more promotion offers through emails or mailing catalogs to houses. One of the most beneficial way of promoting is through email marketing. Customers can be informed about exclusive deals that last for only a time period, discounts, and coupons.

During the second half of our trading period we focussed massively on the private label market and found our niche there. We had realized that the minimum cost of the product wins the market share so we started experimenting with S/Q Ratings and percentage of superior materials to come up with the best product with the least cost price. Adding minimum profit margin to the cost price we were able to seize a massive chunk of the private label market. Attached are a few snapshot highlighting our success in that market.

The business model was to generate high sales volumes and rapid inventory turnover by offering members very low prices on a limited selection of nationally branded and select

By offering mostly main brand names and buying possibly in bulk and presumably at lower prices since they are putting in larger orders, they may be able to command better sales due to lower prices and make better profits. This is to the benefit of both the company and

turnover, which is made possible by low prices and limited product selection. This business model is appealing for them and has many benefits. Firstly, by setting up the business approach to rapidly

This is a bad thing because not only is they’re no security but this causes for the company to pay more in overhead expenses. Also the rent they are paying has the possibility to be increased each year. There is a positive to Rue 21 not owning their real estate, which is if the location is not doing so well the have a clause in the lease where they can back out of the contract if projected sales are not met (Berman, 2009). To help reduce the risk of the real estate strategy it would be in Rue 21’s best interest if they increase the amount of stores they open in malls to help share the consumer base as target since they are in a lot of malls and have the same consumer base. In doing this it will help Rue 21 pick locations that give them more exposure with less risk or loss of

Today, 8,747 stores and club locations in 15 countries employ 2.1 million associates, serving more than 176 million customers a year. Our history is a perfect example of how to manage growth without losing sight of your values. Our most basic value has always been, and always will be, customer service.

In my opinion, the best online retailer is Amazon. They easily have the best customer service and product fulfillment when compared to other online retailers. The inventory in the USA is over 200 million products, making such a feat impossible for a physical retail store to compete (Export, 2013). The following essay will discuss Amazon’s pricing and retail strategy. Both are key factors of their marketing that allow Amazon to sustain their market dominance and retain their loyal customers.

Competitors- The untapped market should be reaped to avail the benefit of being first. This can be done in fresh mushroom segment. Long term relationship with new retailers should be build up. To gain the competitive edge with competitors, RMC should build upon the weaknesses of the competitors. Moreover, training the broker in this respect will improve the RMC’s relation with other retailers.