Case Analysis : ' Pickle Lip Balm ' Essay
---- Pricing Plan
Status quo pricing
I choose Status quo pricing strategy, which means that a product should charge a price identical to or very close to the competition’s price. Since there are many different kinds of lip balm in the market, the pickle lip balm still belongs to lip care category so that it is important to consider competitor’s price.
Then penetration pricing strategy can also be a choice, which a firm charges relatively low price for a product when it is first rolled out as a way to reach the mass market. The pickle balm includes mineral oil and beeswax, which are not very expensive ingredients. Moreover, the idea comes from old tradition so that the product can sell as a low price in order to expand market share without worrying about recovering initial investments.
Choosing this price according to the competitor’s price on the Amazon. Strategy List
Step 1: Determine Your Price
Strategy: Use Charm Pricing
Tactic 1: Reduce the Left Digit By One
This is a strategy that set price more attractive. As a new product, it needs this strategy to catch customer’s eyes. I will reduce left digit number as small as possible and increase the right digit number instead.
Step 2: Influence Their Perception
Strategy: Prime a Small Magnitude
Tactic 10: Use “Congruent” Language
This is a strategy that tries to attract customer through the price tag design. As a new…