Human Resources: Discussing Discounts and Pricing
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Questions:
(1) How do pricing and distribution complement each other when gowns are available at Costco? What are implications for positioning and targeting?
(2) Saks, Bergdorf, Neiman-Marcus and specialty bridal shops will be taking note. Should these stores offer discounts and maybe reduce prices?
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Solution Summary
The solution requires you to read an article on bride gowns being introduced at Costco in order to understand the report on how pricing and distribution harmonize and whether discounts should be made. 958 words with 6 references.
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How pricing and distribution complement each other at Costco:
Pricing and distribution complement each other very well at Costco because gowns are sold at a discount and shoppers are not required to buy in bulk. The discounted price of these gowns has not compromised the quality. The dresses which come in luxury fabrics such as taffeta, satin and organza are embellished with pearls, crystal and Alencon lace. Though these gowns are not cheap, they are far less expensive than the expensive mainline collections of designers. Consultants help to answer and advice on any style questions and the clients can decide to take the gowns at home the same day (Abraham, 2011).
The collaboration with Kirstie Kelly was an attempt to cash in on an emerging market for cheaper wedding dresses that don't compromise on style and quality. The brides-to be can either walk into the temporary Costco concessions during the events which are advertised at the company website or book an appointment (Abraham, 2011). The signature collection bridal gowns offer brides considerable savings because couples can select flowers and invitations through the retailer's website. The trunk show tours to other Western states such as Oregon, Washington, Arizona and Colorado will reduce the costs of clients traveling to Los Angeles to purchase the gown (Berk, 2011).
Implications for positioning and targeting:
It is necessary to understand the preference differences present within the targeted market segments because they are important in determining the competitive structure within the segment and in selecting a position for a brand. The physical product ...
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