What Pricing Strategy Will You Select? Explain Your Position Essay

1610 Words Jun 4th, 2016 7 Pages
A) What pricing strategy will you select? Explain your position.
When evaluating the position that the Cervena products will be looking to gain within the market, a market based pricing strategy was chosen. The chosen pricing strategy is perceived value pricing; this is where the price is based on how the markets values the product (Lee & Carter, 2012). From this, the product can be positioned into the market as to where its value proposition fits based on the estimates of superior quality, image and service. This means that it is not based on cost of production (Lee & Carter, 2012). The explanation of choosing this position is that the Cervena products will try and be positioned at the higher end of the market. This is because the target customers are upper to middle class people sold to them in upper-class supermarkets and restaurants. And by choosing this strategy it allows the products to be sold at a price that accurately reflects the value of the products. Because Cervena products are high quality and have values added components such as traceability, interactive website and sustainable production it helps to create a real story about the products. This leads to a strong product value proposition, helping the products to be positioned in the desired top end of the market. Often prices are associated with quality, so though a higher price it helps to further emphasise Cervena’s strong brand image. However, an issue that needs to be considered is that because the…

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