Appropriate Pricing Method for the Two Brands - Del Monte and Netflix - Research Paper Example

There are various types of pricing strategies in the business which is based upon the type of products and services of any company. The pricing strategy of any company is guided by the 4 Ps of marketing which is known as products, promotion, place and price and is a key element of B2C strategy (Euro Monitor, 2015).There are many factors that are considered when any company develops short-term and long-term pricing strategy for its business such as support to the brand, reach the market share goals and revenue goals and maximization of the profits Pathfinder (2015).

You also need to match the market is ready to pay for your products or services. The pricing strategy should also reflect the value offered by your company when compared with the competitors. The pricing strategy also reflects the type of product and services offered by your company in the market (Southern Cross University, 2015). In this case study, we will study two brands, Netflix and Del Monte. AnalysisBoth brands, Del Monte and Netflix are functioning in completely different sectors of the economy.

NetflixNetflix is one of the largest and legal subscription streaming services for movies as well as online which is offering services for the benefit of the customers for the last few years. Since its establishment in 1997, the company offers online DVD rentals as well as online movie and TV program streaming services for the customers. The streaming services are available for various electronic devices such as PC, Android, tablets etc. The company offers unlimited streaming services which are based upon various monthly subscription plans.

The DVD rental service is available only in the USA but the streaming services are offered all over the world. Del MonteSince, its debut in 1886, Del Monte foods is one of the most well-known and largest retailers of premium branded pet and food products in the US market. They are producers, marketers and distributors and importers of various well-known brands such as Snausages® and Pounce®, S&W®, Meaty Bone®, Pup-Peroni® etc. Del Monte is also a well-known company that offers canned food products including fruits and vegetables to customers all over the USA.

The purchase of the products and services of the company are one-time business transactions in a short-term period. But, the pricing strategy of the company rests upon various factors for a long-term period, such as the comparison of product value with other company’s products and the price range of the product when compared with the other company. ProblemsNetflixThere are many issues with Netflix pricing strategy. Since, its start, the company has charged $7.99 which has not been increased in 2 to 2 years.

Presently, the company has more than 40 million members which are increasing daily (The Atlantic, (2015). Some time back, when the CEO of the company announced a price rise, the majority of subscribers closed their accounts. The second issue is related to the users and devices per account. Today, 2 to 3 members of a family use a single account with many devices. It is causing a loss to the company so they are trying to limit one account per device but the subscribers are not happy with it. Del Monte FoodThe products of the company are at the premium end.

A study concluded that more than 7 homes per 10 households cater to various brands of Del Monte Food. Still, the company is facing a lot of competition from the other brands (Banana Link, 2015). Also, with the fluctuation in the economy, the company is dependent upon the import of various types of vegetables and fruits. Also, the company has to maintain its reputation by checking the standards of the vendors from other countries whether they are complying with various laws as Child labor laws.

Conclusion/ RecommendationsNetflixWith the above issues, it is clear that Netflix has to do some technology planning regarding the download of movies and TV shows on various devices which include the Wii, Standalone computers, Xbox 360 and Playstation 3 (Lowell Sun Online, 2015). With the advance in internet technology for downloading files, the company has to keep pace with the identification of users and implementation of the technology to reduce the number of unpaid subscribers. In addition to that, the company can offer 3 tier plan packages.

It can decide 3 different plans with three different monthly fees and amount of download limits as per the plan.