4ps of 759 Store Essay

791 Words Apr 10th, 2013 4 Pages
759 Store is one of the famous supermarkets in Hong Kong. Many people love to buy 759 Store’ products because of the lowest prices. Their marketing strategy is “small profits, quick returns” which mean they sell their products at low price in order to increase the stock turnover rate and earn the profit faster. However, some research shows that the price of the local products in 759 Store are much lower than others competitors and some of other retailer shop owners pointed that 759 Store are underpricing their products intentionally in order to eliminate other competitors.

Since 759 Store’ strategy is “small profits, quick returns”, their products’ price have to be lower than the same products in outside market in order to earn profits
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Also AMA code of ethics have mention the openness of a business which means to create transparency in marketing operations. Many owners of small business have contracted 759 Store about their problematic pricing strategy, but 759 Store still insist in selling their products with low prices. This indicate that 759 Store is lack of communication with others and do not accept the criticism form others.

According to 4Ps marketing model, the only ethical issue of 759 Store is pricing. 759 Store represents ethically on other 3Ps. For example, they ensure their products are safe, their products and packages have least impacts on the environment. Also, they do not have any deceptive or misleading advertising or bribery in promotion and there are no gray marketing exist. To improve, 759 Store should deal with their pricing problem. First of all, they should stop practicing predatory pricing and the major reason of them to do so is supplier specifically selling their products to 759 Store at low price. Since 759 Store have many branch in Hong Kong, they can perform bulk purchases to the suppliers and ask for the discounts which is impossible for others small retailers to do so. Therefore, I suggest that suppliers should have

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