Pricing Decision
Price decision is very important and plays a very important role in maintaining the competitive advantage in the “beer” market. Tiger beer can be seen as an affordable and smooth beer that tackles the market with a very incisive way or manner. It is very affordable and it is considered to be cheaper than their competitors. When deciding what price that Tiger Beer should be sold, several aspects are considered. Firstly, selling in a very high price will affect the demand and while selling at a low price will affect the profitability of the company. Therefore, Tiger Beer has to consider its variable, fixed and total cost for producing its beer. This process of considering all of its cost is called Cost Based Pricing. …show more content…
Tiger beer sold in different locations such as hypermarkets, pubs, clubs, or even hawker centers can be charged with different prices. This is because each of the consumers in different places had different customer value. For example, customers at pubs or clubs are slightly inelastic in price compared to those in hawker centers. Moreover, when Tiger Beer comes out with new and innovative product, they should do more research in prices of their competitors before they set any price. This is to prevent any backlash and unwanted/negative …show more content…
This is because beer is likely to be consumed by people of all ages. Included the elderly. Tiger Beer has been sending direct mails to people’s houses or even promoting it in the newspaper. This is to attract each and every segment of the “Age” demographic. Elderly people are most likely to read newsletters or even newspapers during their leisure time. Therefore, it is very effective to promote their products. Promotion of these type of products are seen to be more likely effective during festive season such as Chinese New Year, Deepavali or even Christmas. Moreover, Ads on mobile devices are useful as well. Youngsters or even people of an average age are always on their phone. Ads on mobile devices such as advertisement on Youtube, Advertisement on Facebook, or even other apps may attract the attention of these people. Furthermore, Couponing is also useful as well. This will attract people to buy even more. For example, coupons like buy 1 free 1, 10% discounts will greatly attract consumers to buy even more, and they will think that they have saved a lot in the
Price decision is very important and plays a very important role in maintaining the competitive advantage in the “beer” market. Tiger beer can be seen as an affordable and smooth beer that tackles the market with a very incisive way or manner. It is very affordable and it is considered to be cheaper than their competitors. When deciding what price that Tiger Beer should be sold, several aspects are considered. Firstly, selling in a very high price will affect the demand and while selling at a low price will affect the profitability of the company. Therefore, Tiger Beer has to consider its variable, fixed and total cost for producing its beer. This process of considering all of its cost is called Cost Based Pricing. …show more content…
Tiger beer sold in different locations such as hypermarkets, pubs, clubs, or even hawker centers can be charged with different prices. This is because each of the consumers in different places had different customer value. For example, customers at pubs or clubs are slightly inelastic in price compared to those in hawker centers. Moreover, when Tiger Beer comes out with new and innovative product, they should do more research in prices of their competitors before they set any price. This is to prevent any backlash and unwanted/negative …show more content…
This is because beer is likely to be consumed by people of all ages. Included the elderly. Tiger Beer has been sending direct mails to people’s houses or even promoting it in the newspaper. This is to attract each and every segment of the “Age” demographic. Elderly people are most likely to read newsletters or even newspapers during their leisure time. Therefore, it is very effective to promote their products. Promotion of these type of products are seen to be more likely effective during festive season such as Chinese New Year, Deepavali or even Christmas. Moreover, Ads on mobile devices are useful as well. Youngsters or even people of an average age are always on their phone. Ads on mobile devices such as advertisement on Youtube, Advertisement on Facebook, or even other apps may attract the attention of these people. Furthermore, Couponing is also useful as well. This will attract people to buy even more. For example, coupons like buy 1 free 1, 10% discounts will greatly attract consumers to buy even more, and they will think that they have saved a lot in the