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Dunkin Donuts Pricing Strategy Essay

825 Words4 Pages

1.1 Introduction
This report is about the different uses of pricing strategies and the purpose is to explore how and why strategies are used based on the industry or company. The target audience could be any upcoming businesses - to understand how others make profit, based on specific strategies. The following pricing strategies will be discussed in this report:
1. Premium – Emirates Airlines
2. Competitive – Samsung
3. Cost-Plus - Nike
4. Product line – Dunkin Donuts
2.0 Main body
2.1 Pricing strategy name
Premium pricing
2.1.1 Company name and product
Emirates Airlines - selling plane ticket
2.1.2 Explain
Premium pricing is when a business sets the price of their product high and justifies the same by convincing their target customer on the amazing …show more content…

Also, this is a good way to gain profit for newly formed businesses to help their initial stages.
2.4 Pricing strategy name
Product line pricing
2.4.1 Company name and product
Dunkin Donuts - selling donuts in bulk
2.4.2 Explain
Product line pricing is strategy that sets a lower unit price for bulk than for a single unit- thus encouraging high volume sales driving profitability. At Dunkin - donuts being sold in a dozen pack is more common and cheaper as compared to buying 12 individual donuts on their own. Think of it as a combo or special offer – but that is default sales offer to customers.
2.4.3 Advantages and Disadvantages
Advantages Disadvantages
Higher profit without high investment Higher consumption to production ratio sometimes
Offers purchasing value to consumers Factors like the economy and purchasing rate will highly impact this strategy

2.4.4 Recommendation
This strategy should be used when the companies produce /stock needs to be consumed fast and hence a high volume sales need to be driven by the pricing strategy.
3.0

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