Pricing of the Designer's/Brand's Products/Goods (Burberry)
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Assume that you are the newly hired pricing manager for the designer's/brand's products/goods you are to chose from this list (this is the same list you used in the prior module - your choice may be but need not be the same as you used in the prior case) and that the VP of Marketing wants you to prepare a report on how the designer's/brand's products/brands/goods are currently marketed and to begin to think about what changes, if any, you might want to see made in the pricing of that designer's/brand's products/goods.
Does pricing make the designer's/brand's products/goods different from its competitors?
Defend your position.
In terms of product/good marketing, how would you change the prices of the products/goods?
Defend your position.
In preparing your CASE5, ensure that you demonstrate your learning of the marketing concepts and frameworks for analysis outlined in the modular learning objectives by using and referencing the background and case material.
1. Explain the pricing strategies that firms use.
2. Explain what factors are involved in the development of a pricing strategy.
3. Explain the relationship between costs and prices.
4. Explain the relationship between a firm's pricing strategy and its product, distribution, and promotion strategies
In particular, review what you learned about consumer behavior (Background Readings for Module 1) and bolster your argument in terms of when consumers make their decisions based on price as opposed to brands.
Note that this assignment does NOT require you to prepare a detailed essay. Instead use section headings for each of the topics you address in your paper followed by a discussion of that topic.
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Solution Summary
The solution discusses if the pricing makes the designer's/brand's products/goods different from its competitors.
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Pricing Strategy of Burberry
Pricing Strategy
Burberry is well known firm in the competitive marketplace that offers luxury products in different segments (Burberry Creative Strategy, 2010). In the contemporary business environment, competition is increasing rapidly that affects organizational growth as well as their marketing strategies. So, it can be stated that pricing makes the designer's/brand's products/ goods different from its competitors. To support this statement, following points are considered as supportive tools that prove this argument.
To attract customers as well as to increase customer base, effective pricing strategy is used by the company. The firm uses premium pricing strategy to sell its products in the global marketplace (Burberry Creative Strategy, 2010). Pricing strategy holds the effective prices of its products under the core offerings of the firm. Along with this, according to the market situation, the firm changed its pricing strategy to attract customers at high extent as compared to its competitors (Okonkwo, 2007).
Factors
Various factors are considered by the management to develop effective pricing strategies for Burberry. These factors can be discussed as follow:
Customer demand: Customer demand is an important part to develop pricing strategy of a firm. Burberry considers customer's demand to develop its pricing strategy effectively. According to the customer's perception, needs and wants, the company changes and develops its pricing strategy (Pickle and Van, 2009). Along with this, customer's willingness to purchase the products of firm is also assessed by the organization to develop pricing strategy for its products. Level of customer's demand for the firm's products is also assessed at the time of developing pricing strategy by Burberry (Burberry: Success Story or Cautionary Tale, 2011).
Competitive Environment: Competitor's pricing strategy is also analyzed by the management of the firm to develop effective pricing strategy. At the same time, clearness and considerable benefits of the firm's pricing strategy over its competitors are also analyzed to adopt effective pricing strategies that have capacity to attract the customers. In short, existing price in terms of competitor's price ...
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