Answer – Pricing Strategies

Pricing Strategies

Here is the ‘Pricing Strategies Matrix’ with the answers overlaid. Here are the more detailed explanations.

  • Burger King introduces a new range of value meals. There is a lot of price competition in the fast food market, hence the value approach.
  • Nokia launch a new videophone. This is a new, innovative product that can claim a higher price. Skimming is only an option in the short-term since competition will be inevitable.
  • Wall-Mart launch a new range of own-label soups. This is an economy brand.
  • Cunard launch two new cruise ships. The service is high price and high quality with a premium price.

Pricing

  • A cable TV provider moves into a new area and needs to achieve a market share. The company uses a penetration approach to gain market share. Prices could be increased at a later date.
  • Holiday Inns try to fill hotels during winter weekends. This is an example of ‘off peak’ pricing.

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