Supposed you have been hired as a Marketing Manager in a Multinational Company which is
dealing in high tech products. Company wants to launch a cell phone in the market which can
measure the Sugar level and Heart beat of the users. Since, it is a specialty product so it
requires very rational strategic decisions to be made in order to launch in new market. Selected
target market for your company is Lahore. Now you are required to prepare an analysis on the
following Ps of marketing before launching this new product in the market.
Product = Specialty
Place = Lahore
Price =?
Promotion =?
* As the target market comprises of the affluent or elites of the city, you need to devise
appropriate plan for this.
Requirement
Price
You are required to select the best option and justify your answer
Pricing plan:
• Less sale and high profit margin
• High sale and less profit margin
Pricing strategy:
• Skimming strategy
• Penetration strategy
Pricing approach:
• Value exchange = Price
• Cost plus profit = Price
Promotion
You are required to mention the proper plan for the promotion of this product under the
following headings.
• Advertisement strategy
• Promotion strategy
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To determine the best pricing option for the specialty cell phone, you should consider the target market, the competition, and the goals of the company.
1. Less sale and high profit margin vs. High sale and less profit margin:
- If the company wants to position the product as a high-end, exclusive device for the affluent or elite market in Lahore, it could opt for a pricing strategy of less sale and high profit margin.
- This means selling the cell phone at a higher price point to generate higher profits per unit sold. This pricing strategy would appeal to customers who value exclusivity and are willing to pay a premium for the unique features of the cell phone.
2. Skimming strategy vs. Penetration strategy:
- In a skimming strategy, the cell phone would be initially introduced at a high price to capture the early adopters and those willing to pay a premium for the specialty features. Over time, the price could be gradually lowered to attract a broader customer base.
- On the other hand, a penetration strategy involves launching the cell phone at a lower price to quickly gain market share and attract a larger number of customers. The focus is on selling a large volume of units rather than maximizing profits per unit.
3. Value exchange = Price vs. Cost plus profit = Price:
- The value exchange pricing approach considers the perceived value of the cell phone to the target market. The price is set based on the benefits and features offered by the product in relation to the target market's willingness to pay.
- The cost-plus profit pricing approach calculates the cost of production, including materials, labor, and overhead, and adds a desired profit margin on top to determine the selling price. This approach ensures that each unit sold contributes to covering the costs and generating profit.
For the promotion of the specialty cell phone in Lahore, you should focus on creating awareness and generating interest among the affluent or elite target market.
1. Advertisement strategy:
- Consider using targeted advertising channels that reach the desired audience, such as luxury lifestyle magazines, exclusive events, and high-end digital platforms. These channels can effectively showcase the unique features and benefits of the cell phone to the target market.
- Collaborate with influencers or celebrities in Lahore who have a strong following among the affluent or elite audience. They can endorse the product and create buzz around its launch.
2. Promotion strategy:
- Organize exclusive launch events in upscale venues in Lahore to create a sense of exclusivity and invite key influencers, potential customers, and media representatives. This will help generate excitement and word-of-mouth promotion.
- Offer limited-time promotions or discounts to early adopters to incentivize them to purchase the product and spread positive feedback within their social circles.
- Utilize social media platforms to showcase the cell phone's features, customer testimonials, and its ability to measure sugar levels and heart rate accurately. Engage with potential customers through informative content and personalized interactions.
Remember to align the pricing and promotion strategies with the goals and brand image of the company, considering the specific needs and preferences of the target market in Lahore. Continuously monitor the market response and adjust the strategies accordingly for optimal results.