Sales oriented objectives are setup when marketers plan to target Bottom of the Pyramid segment, where playing on margins is very difficult, since the disposable income is minimal. In the given situation, Hawaiian Punch has placed its product at such a price point that it has allowed companies to play on margins as well as volumes, and giving tough competition to Nestle (Buy The Case: Hawaiian Punch Lemon Berry Squeeze 2012). Markups are a major issue when it comes to distribution of products. Numeric Spread and Weighted Spread of a firm’s products depends on the distribution markup costs that a particular company faces. Retailer margins add to the costs that the company incurs. The sole purpose of every company or MNC in the market is profit maximization. In today’s highly competitive market where national and regional markets have integrated to form one common globalized arena, marketers have a tough job to come up with ideas and innovations which bring us to the idea of increasing the ‘size of pie’ strategy. Today consumers are highly aware of their needs and want about the latest technology about what suits them, who is offering what to them, and at what prices is the desired product offered. Customers today are well connected and up to date to such an extent that they can and do access any supplier in case of MNC’s and any producer in case of individual customers, who offer them premium quality products at affordable prices. This easy access to premium products all around the world has back fired in some cases. For example now companies face such immense competition coming from all around the globe that they have to create discounts, personalized pricing, negotiable pricing strategies and psychological pricing to generate instant sales and ensure market share growth. In case of discounts, companies plan to generate instant response from customers and short term results are augmented sales. Personalized pricing is more evident in Business to Business selling, where firms come up with specifically tailored packages for each buyer or seller (Food Distribution Channel Overview, 2012). Product life cycle is an integral determinant of pricing strategy as well. Every product has its own level from emergence to death when defined according to Kotler’s generalized five levels of product life cycle. The very first level is the introduction stage where the product is launched and the adventure lovers and innovators try it out. To create awareness in market about the product companies select a humble price to generate trial amongst the consumers. Second stage is of growth, when enough awareness is generated and people start trying out the product out of excitement, curiosity and to live the experience promised by the firm (Kotler 2000). The price at this stage is set to that of a challenging one where the company invites and boosts the curiosity plus excitement it has to offer to generate desire for its product amongst all the SEC classes. Third, are the early adopters, where the product tends to maturity and a 30%-45% chunk of population has tried out the product. Price point at this stage creates an image of the product. Fourth are the late adopters, who are risk averse and tend to play safe. At this point, price of the product is justified
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