Pricing Strategy and Channel Distribution Essay

Pricing Strategy and Channel Distribution - Essay Example grocery sagacity set strategy leave introduce dorm detergent at a lower price than the other detergents already existing in the grocery. The introduced wares 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 modify the company to acquire its own market niche. Once the detergent has gained a significant theatrical role 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 day-to-day 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 development mark et penetration strategy, the company is going to create the presence of its products in the consumers mind. This pricing strategy will create good will for the brand name of the detergent and will consequently make them positively attached to the product for a long time. The strategy will create a room for cost reduction and control right from the initial manufacturing stage to the end user. The join on in cost controls will help the company to increase profit margins throughout the channels of distribution and gain a competitive advantage against other companies manufacturing detergents. The tactics that the company is going to adopt in penetration pricing will include price competition and value pricing. The company will employ competitive pricing strategy tactic to penetrate the market already occupied by other players, as soundly as to set pieces according to the prices of similar detergents in the market. The competitive tactic is aimed at creating a distinction for the Halls detergent from the other detergents in the market. The Hall detergent is going to have a lower cross price elasticity as well as price elasticity, which will increase the demand for the detergent. Competition pricing strategy will create a room for the customers to explore the features of the hall detergent. This product has been made of high quality ingredients to ensure that cleaning becomes a fun activity. The effortless usage of the Hall detergents is the main feature that the company seeks to market using penetration and competition pricing strategies. The competitive pricing strategy will give the customers the right to choose between varieties of products as the company has a medical prognosis of displaying their products with high quality features at a lower price. In competition pricing strategy, a seller offers low products bring outd with low costs. However, the company will non use less quality ingredients in its bid to sell products at a lower price or control price s. The company will produce the Hall detergent with strict quality control and assurance. Once the product has gained its market share, the company will employ a value based pricing tactic. According to Boone and Kurtz (2010), value based pricing tactic will compare the quality and prices of the competing products in the market. The strategy will only work for goods that that are relatively low priced.