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    Strategic Marketing SLP5

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    Marketing Mix: Pricing and Distribution in Marketing Decisions of the Droid Phone

    (1) Review the pricing strategies of the Droid Phone. Which of those pricing strategies would make sense? Why?

    (2) What is the role of discounts in the Droid Phone strategy. What would you advise the company in terms of discounts and specials?

    (3) Explain the distribution strategy for the Droid Phone. How does it fit with the designated target market? Is there an incongruity with the store or other outlet? In other words, does the distribution seem to fit the product's target as well as harmonize with other elements of the marketing mix?

    (4) What is the Droid Phone brand extension? For instance, suppose ALPO created a new food for large dogs - a dry form and a canned form. Would the company need to modify its pricing and distribution strategies? What would be changed and what would stay the same and why?

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    Solution Preview

    (1) Review the pricing strategies of the Droid Phone. Which of those pricing strategies would make sense? Why?
    The pricing strategy of Droid Phone is to have premium pricing. When comparing the pricing of Droid X with 16 GB iPhone 4, the Droid X costs about $360 more than iPhone 4 over two years. However, the difference is that there is a 200 MB cap for the iPhone 4 whereas there is unlimited data that can be downloaded on Droid X. with high end plan options Droid X costs $120 more over two years.
    In my opinion since Droid X needs to capture a large market share quickly the pricing strategy that is appropriate for Droid would be a penetration strategy, that is to keep the prices low and capture a large market share.
    (2) What is the role of discounts in the Droid Phone strategy. What would you advise the company in terms of discounts and specials?
    The role of discounts in the Droid Phone strategy is to offer discounts to businesses for large orders. In terms of discounts and specials, ...

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