Pricing Strategy Of Walmart

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ECONOMY PRICING Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Companies take a very basic, low-cost approach to marketing--nothing fancy. It is just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive Aldi, a food store, is another example of economy pricing strategy. They keep their prices low and attract huge customers . There are other types of pricing which is totally opposite to this strategy. Market penetration pricing is a strategy wherein the product when introduced in the market is set low following its introduction in the market. Prices in order to increase sales for a new product in some case…show more content…
Companies take a very basic, low-cost approach to marketing--nothing fancy. It is just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive Aldi, a food store, is another example of economy pricing strategy. They keep their prices low and attract huge customers . Penetration pricing is based on a particular principle which is that a product or any commodity has enough buyers to make up for the lower price point. This can be used as a strategy where in the competitors will have lower their prices in response or risk being forced out of the industry. Thus it can be an aggressive tactic against competitors. companies and the owners of the different business houses set their own price when they are first to enter the market. They charge really high price in the beginning and this is how they enter the market. But gradually as the product lifecycle grows , they lower the price of the product. • Establish the…show more content…
Brand can be established on different basis. Maybe quality or status. Therefore, companies use price-skimming strategies to reach their target markets and successfully establish their brands. • Perceived Quality Quality is what every consumer seeks be it any goods. So, this should also be the prime focus. Brand can be established on different basis. Maybe quality or status. Therefore, companies use price-skimming strategies to reach their target markets and successfully establish their brands. But quality also matters. • Attract Status Conscious Consumers The major customers are the ones who are status conscious may purchase higher priced goods for prestige. Designer labels and other luxury goods are used as strategies by these companies. Now, this creates the drive to buy goods even at higher rates. Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Companies take a very basic, low-cost approach to marketing--nothing fancy. It is just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive Aldi, a food store, is another example of economy pricing strategy. They keep their prices low and attract huge customers
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