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Pricing Strategy and Channel Distribution - Essay Example
Author : cbotsford
Pages 5 (1255 words)
Pricing Strategy and Channel Distribution Instructor Institution Date Pricing Strategy and Channel Distribution The title of the company under discussion in this paper is Hall Detergents and the product is hall-washing powder. The company is seeking to introduce its brand-new product into the market and to carry out a market research on the demand of detergents…
Market penetration pricing strategy will introduce Hall detergent at a lower price than the other detergents already existing in the market. The introduced products will come in different packages, each of which will have its price depending on the amounts packaged. The company is aware that it is exploring a competitive market segment where lowering prices at the entry stage will enable the company to acquire its own market niche. Once the detergent has gained a significant share of the market, the company will pursue other strategies and reduce prices accordingly. Market penetration is going to attract people who have never used the detergent before. The company aims at attracting new customers to use Hall detergent for their daily household activities such as washing and cleaning. The penetration pricing strategy will help the company to create a high market share for the new detergent. By using market penetration strategy, the company is going to create the presence of its products in the consumers’ mind. This pricing strategy will create goodwill for the brand name of the detergent and will consequently make them positively attached to the product for a long time. ...