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Running Head: Annual Report for Firm F Annual Report for Firm F Name Institution Date Annual Report for Firm F Business Definition The customer segment for Firm F includes families, singles, value seekers, high income people and enterprises. The customer segment has different customers with different needs most of which were satisfied…
There are a lot unmet vehicle needs in the market and Firm F aims at filling this market gaps in accordance to its available resources. Pricing strategy The company did not have a specific product strategy. However, customer based pricing and competition based pricing have been used for the past 5 years. Using the customer based pricing; Firm F has had the flexibility of charging different prices to its different customers which either fell or rose depending on the size of the customer’s wallet. The customer target for Firm F includes people of different sizes of wallet though they have a common need. Therefore, exceptionally high sticker price was tagged on each car after which information about a prospective buyer was collected to gauge how the buyer is price sensitive. If the prospective buyer as found to be price sensitive, a negation on the price was done otherwise, the car was sold at the price given on the sticker. High price for cars leads to high demand and high sales for these target groups. The vehicle industry is highly competitive and so Firm F had to use competition based pricing as its pricing strategy. In this strategy, the firm checked out on the competitor’s prices and then set the price of its cars about the same level or lower with the main of attracting more customers hence increased sales. ...
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