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Pricing and Promotional Strategy

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A4.- Pricing Strategy The initial cost strategy to be used will be one of penetration based pricing. Since it is expected to attract a younger audience, it is understood that they have less income, so by offering the product at a lower cost than the competition will help us penetrate the market and achieve significant sales during the first months that the products they go to the market. If this campaign is successful as predicted, it will be observed that production costs will decrease, and we will also have a high inventory turnover. The cost of our products is as follows. Bag for drumsticks $15.00, and Protective rug for drums and percussion, $19.99. Developing and launching costs. During the investigative phase, the accost associated …show more content…

They have the vision to target young aspiring musicians living in main cities as Santiago, Puente Alto, Antofagasta, San Bernardo, Vina del Mar, Temuco, Rancagua, and Valparaiso. These are cities that have a population that ranges between 248,000 to 5 million. Their segmentation is based on Geography and Demographics. All the mentioned mass media or social media channels are utilized by a very high percentage of people with Facebook remaining the most utilized social media outlet in the country. Iab.trends reported that in Chile there are about 6 million users of Facebook and that the ages of those users are between 15-24 years of age. Iab also reports that ads have recorded about 3,755,500 monthly clicks with a 1% of conversions or about 37.55 conversions a month that have returned a sale. (iab trends 2016). Instagram, websites and other media outlets have their place and time and Percussion World recognizes that people between the ages of 18-35 are involved and many of them have the accessibility to be exposed to the advertisements and other promotions that could be offered for the

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