Santini Marketing Strategy

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Santini is an ice cream store originated from Cascais back in 1949. They position themselves as having the best ice cream of the world. Six decades after the opening of the first store, the "brand Santini" is very consolidated in Portugal and has a growth potential that experts consider "extremely significant" and that will take a "spirit Santini" to other markets. They have three main products: • A cone with one ball of any flavor of ice cream costing 2.5 euros. • Bakery products like chocolate cake, waffles, milkshakes , hot chocolate, etc • Souvenir items like hats, notebooks, lunch boxes, sandals, etc They also have home delivery for their ice creams in several sizes and flavors costing from 14.20 for their 500ml bucket to 44 euros for…show more content…
Bundling is the strategy of marketing two or more products or services as a specially priced package and it’s a form of non-linear pricing. The literature identifies three alternative bundling strategies. • Unbundling - Under the pure components (or unbundling) strategy, the seller offers the products separately (but not as a bundle). Unbundling does not detract from the exclusion condition, because the optimal single prices of the goods cannot be less than the variable costs • Pure bundling - Under pure bundling, the seller offers the bundle alone. In pure bundling, it is possible to transfer the consumer surplus for one product to the other product, in which case the high Reservation Price for the one can compensate for the low Reservation Price for the other. Consumers would thereby purchase the bundle, although their Reservation Price for the single products is lower than variable…show more content…
This can be considered a second degree price discrimination strategy, since customers will be given the choice between buying the bundle or each single product. Product bundling accomplishes price discrimination by capturing customer´s “money left on the table” in the form of an increased willingness to buy a 2nd product but for this to work the consumer judgment is vital therefore information requirements for optimal bundling are high. The prime benefit reaped through price bundling is in the transfer of the consumer surplus of one product to the other, which implies that a negative correlation between the Reservation Prices for the two products is an essential prerequisite. An implicit assumption here is that the variable costs will be lower than the corresponding Reservation price. Behind this assumption is the idea that the low Reservation price for one product balances the high Reservation Price of the other. This balance between the Reservation Price for the two products creates a more homogeneous Reservation price for the bundle compared to that of the two products taken

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