Pricing Strategy and Channel Distribution Essay

Pricing dodging and Channel Distribution - Essay ExampleMarket penetration pricing strategy go forth inclose Hall detergent at a dismantle scathe than the different detergents already existing in the foodstuff. The introduced convergences will come in different packages, each of which will have its price depending on the amounts packaged. The high society is aware that it is exploring a competitive market place segment where lowering prices at the entry stage will enable the order to acquire its own market niche. Once the detergent has gained a significant conduct of the market, the company will pursue other strategies and reduce prices gibely. Market penetration is going to attract quite a little who have never used the detergent before. The company aims at attracting new customers to use Hall detergent for their daily household activities such as washing and cleaning. The penetration pricing strategy will care the company to form a high market share for the new det ergent. By using market penetration strategy, the company is going to create the presence of its products in the consumers mind. This pricing strategy will create goodwill 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 operate on cover from the initial manufacturing stage to the end user. The increase 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 wrap up the market already occupied by other players, as well as to set pieces according to the prices of similar detergents in the market. The competitive tactic is aimed at creating a disti nction 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 tint ingredients to underwrite 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 chance of displaying their products with high quality features at a lower price. In competition pricing strategy, a seller offers low products produced with low costs. However, the company will not use less quality ingredients in its bid to sell products at a lower price or contro l prices. 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 found 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.