Mkt 501

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MKT 501 MODULE SLP

DR GORDON LEICHTER

3 OCTOBER 2012

Introduction:
PepsiCo produces, promotes and sells a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages. Pepsi is a non- alcoholic carbonated beverage. Many different types of flavors were introduced by the company. Fruit flavors, coffee flavors were variant versions. Firstly, Pepsi used niche-marketing to distribute the product among the customers after that the Pepsi challenge marketing campaign was introduced by the Pepsi to the marketplace. Pepsi faces rivalry with coca-cola that was reduced by adopting this strategy. The goal of the company is to provide premier quality products to its customers and it aims at providing growth opportunities and enhancement to their employees. Thus this will also give advantage to its customers.

This Session Long Project is aimed to integrate all the previous assignments and which we have learned during last week of discussion in class under the umbrella of “Strategic Marketing” including four P’s of marketing i.e. Products, Promotion, Pricing and Placement. Pricing refers to the process employed in order to determine the amount firm will receive after handing over its products to end users of consumers. There are numerous factors on the basis of which price of product is determined including mainly manufacturing cost, conditions of markets, market place, quality of products and so forth. In the field of microeconomics the pricing is considered as the key variable in allocating theory of price. It is one of the important and fundamental dimension of financial modeling and marketing mix (Carter, 1992). Pricing Strategies:

Pricing strategy is one encompasses three different dimensions in order to improve firm’s profitability and returns on investment including firstly the cutting down the cost and increase their margins, sell more products (may be by reducing sales prices for products having higher price elasticity especially the luxury products), finding more profit by using better pricing strategies. Thirds dimension or way is normally used when cost is already its lowest and sales are impossible to find. Adopting best pricing strategy consistent with firm’s goal of profit maximization is not something like to raise the prices or something like that but is based upon nature of product, nature of market, consumers, economic conditions, and many other factors. Therefore there are about 25 plus broad categories of pricing strategies varied depending upon these factors. The pricing strategies described in back ground reading are combination of different pricing strategies for instance High-Low pricing and Value Based Pricing. The high-low pricing method for products refers to a method where the goods and services are priced and offered by the firm are normally higher than that of the competitors but on the other hand are offered lower prices by including the promotions, advertisements and coupons especially on key items of the firm (Carter, 1992). Additionally the lower promotional prices are normally designed in order to bring the customers closer to an organization while offering the promotional products and similarly the regular higher priced products as well. Secondly the firm is also using the value-based pricing strategy which refers to the strategy for pricing the products and services on the basis of perceived value of products and services rather on other factors. in other words the pricing strategy is wholly based on the value of products and services in customers view and are likely to be changed in the market place with respects to change in value of these products (Bateman, 1993). Positioning Strategy of Firm:

In the field of marketing the positioning normally means the process employed by the marketers in order to develop an image and identify of their organization, brands and products and services in the eyes of their targeted customers (Mussel,...
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