Concept explainers
Case summary: Company TJ’s one of a kind price and value strategy has made it one of the country's quickest developing, most famous food stores. Company TJ’s comprehends that achievement comes not just from what items you offer to the consumers or the costs you charge. It originates from offering the blend of items and costs that delivers the best customer value on what customers get at the costs they pay.
Company TJ isn't generally a gourmet food store. On the other hand, it is anything but a discount food store either. Company TJ’s stocks just a limited arrangement of around 2,000 speciality products. Nonetheless, the variety is particularly Company TJ’s, including special blends of gourmet packaged food and sauces, instant to eat soups, new and frozen dishes, snacks and sweets.
For this, Company TJ’s keeps its costs low through lean tasks, a close obsessive spotlight on setting aside cash, and extremely low publicizing expenses.
To discuss: The reasons on whether the pricing strategy differentiate from the rivalries.
Characters in the case: Company TJ.
Consumer products likewise alluded to as the completed goods that are purchased by people or family units for individual use. As such, consumer products are products that are purchased for utilization by the average shopper.
Want to see the full answer?
Check out a sample textbook solutionChapter 10 Solutions
Principles Of Marketing
- You're in charge of pricing Phonic's product for its launch early next year. Review the SWOT analysis you previously prepared as well as Phonic's competitive environment, targeting strategy, and product positioning. Now continue working on your marketing plan by responding to the following questions. * What should Phonic's primary pricing objective be? Explain your reasoning. * Are smart phone customers likely to be price sensitive? What are the implications for your pricing decisions? * What price adaptations (such as discounts, allowances, and promotional pricing) should Phonic include in its marketing plan?arrow_forwardshort answer Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.arrow_forwardHas Cath Kidston executed value-based pricing, cost-basedpricing or competition-based pricing? Explain.arrow_forward
- How does cost-plus pricing strategy affect the company's performance and how they benefit from this?arrow_forwardDoes "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forwardAlthough more than one strategy can achieve profitable results, even within the same industry, nearly all successful pricing strategies embody three principles. They are value-based, proactive, and profit-driven. True or False?arrow_forward
- Let’s assume Tesla Motors (the electric car company) has decided to adopt a skimming pricing strategy for its electric cars. Write a short note on the marketing program components for its pricing strategy.arrow_forwardCan Lululemon continue to succeed by employing the same premium-pricing strategy? Explain.arrow_forwardResearch Smashburger pricing. Discuss the three major pricing strategies in relation to Smashburger. Customer-Value Based Pricing Cost-Based Pricing Competition-Based Which do you think is the company’s core strategic pricing strategy?arrow_forward
- Go online to a shopping site you use regularly and note theprices for different types of products. Does this firm usepsychological pricing? Product line pricing? Note any pricingstrategies you can identify. Do any of these strategies makeyou prefer the site over a competitor’s site?arrow_forwardDiscuss the three major pricing strategies in relation to Hammerpress. Which of these three do you think is the company’s core strategic strategy?arrow_forwardPlease help me answer this. The link of the video is here: https://youtu.be/qutavZTkFeY Thank you so much in advance for your help!arrow_forward
- MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational PublishingPurchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning