Business Plan: Description Of Customer And Their Needs (Research Paper Sample)

Pricing Strategies
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Since the company will be using a new 3D technology that has never been used before, I believe the skimming strategy will best fit their pricing of the product in their marketing approach. Additionally, they will enjoy a market monopoly for a long period before their competitors are able to come up with a similar product that will be able to compete with theirs. The skimming strategy will prompt the company to price their products slightly higher since it will be having superior features not found on other television sets. With this strategy, the company will be able to achieve a breakeven of the cost used in the research other activities needed to come up with the new technology CITATION Har09 \l 1033 (Harmon, 2009).
What makes this approach even more feasible is the fact that no other company has implemented the new technology on their television sets. In this regard, the company will be practicing what is commonly practiced by other electronic companies, whenever they launch a device whose technology is superior and currently does not have competitors. Additionally, with more buyers attracted by the new technology despite its high price, the company is able to sell enough before alternative TV sets are developed CITATION Har09 \l 1033 (Harmon, 2009).
Another factor that will ensure optimal benefits of the new technology is the acquisition of patent rights. These rights will protect their product from being copied, hence remaining in business for a long time CITATION Har09 \l 1033 (Harmon, 2009).
In the case of a new dishwasher detergent, the company should employ a penetration pricing strategy while marketing and selling their products. With this strategy, the company will be able to sell its detergents quickly despite it being new to the market. The aim will be to introduce themselves in the market, therefore, low-profit margins will be accommodated. This strategy will be adopted until the company manages to create a name for themselves in the market CITATION Pop07 \l 1033 (Popescu, 2007).
The penetration strategy works on the belief that what make most customers in the market attracted to a new product is its price. The lower the price, the more is its sells. For the newly created company, selling their detergent at a lower price relative to others in the market will ensure the company haves an ample time introducing themselves to the market before they are able to conquer and have a market share of the already controlled market. Nonetheless, the penetration strategy will not always work for all customers. Some, are quality-oriented and they associate poor quality with low prices. Therefore, lowering the prices will only drive them away from the new product. In this case, the company should concentrate on highlighting the benefits their products have over others CITATION Pop07 \l 1033 (Popescu, 2007).
Some of the advantages of adapting penetration strategy for the detergent company are in line with their objectives of introducing their products to the market and progressively increasing their sales and market share. One of the advantages of a lower price will be in relation to the company being able to enter a market and establish themselves as a force to reckon with. To add to this, apart from other marketing campaigns, the product will be able to market itself through word of mouth from early adopters. Finally, this approach will be able to stifle new competitors from entering the market, hence maintaining or increasing the market share. Penetration strategy would best apply in a market where the targeted consumers are price sensitive and are more inclined to cheaper products CITATION Pop07 \l 1033 (Popescu, 2007).
For the newly opened electronic shop to stay in the market and compete with the Best Buy shop, pricing model used should be competitive enough to ensure the company increases its client’s base. With the Best Buy being some steps ahead, due to their existence in the market for some time and having created a base of loyal customers. Some consumers prefer dealing with a company they have been used to. This coupled with the fact that the company has only been opened recently would call for a strategy that will not only attract new customers but also attract Best Buy loyal customers. In this case, Going Rate Pricing strategy will best fit CITATION Har09 \l 1033 (Harmon, 2009).
This model will ensure the company prices their items while using their competitors’ prices as a benchmark. Before beginning operations, it would be essential for the company to know Best Buy price model and their strategy if possible. The information acquired will help them is setting up the prices for their products. The aim of this is to ensure the prices used in the store does not surpass that of the competitor and in most cases, should always be lower. In the event the products prices are higher, the store will fail to attract clients hence resulting in poor sales that will prompt it to shut down its business CITATION Har09 \l 1033 (Harmon, 2009).
Using Best Buy prices to set their prices together exemplary customer services by sales staffs who are knowledgeable and selling of latest products such as I-Phones will attract more customers. Thi...