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Coca Cola đang áp dụng có chiến lược định giá :

- Định giá phân khúc (Segmented Pricing)

- Định giá tâm lý (Psychological Pricing)

- Định giá cao cấp (Premium Pricing)

- Chiến lược định giá thâm nhập (Penetration Pricing)

Phân tích kênh phân phối chiến lược định giá :

1. Định giá phân khúc (Segmented Pricing)

- Vùng nông thôn:Thông qua các nhà phân phối khu vực và đại lý cấp 1, Coca-Cola giảm chi phí để duy trì giá thấp hơn.

- Khu vực thành thị: Phân phối qua cửa hàng tiện lợi như Circle K, 7-Eleven, giá thường cao hơn do chi phí mặt bằng và dịch vụ.

• Ví dụ: • Ở các quốc gia đang phát triển, Coca-Cola bán sản phẩm với giá thấp hơn để phù hợp với khả năng chi tiêu. • Giá tại các nhà hàng, khách sạn cao cấp thường cao hơn so với cửa hàng tiện lợi hay siêu thị

2. Định giá tâm lý (Psychological Pricing)

- Cửa hàng tiện lợi và siêu thị: Những nơi dễ áp dụng chiến lược giá tâm lý, như giảm giá còn 9.900 VNĐ.

- Cửa hàng bán lẻ nhỏ: Giá bán lẻ thường được làm tròn, khiến khách dễ cảm thấy hợp lý.

• Ví dụ: Giá sản phẩm thường được đặt ở mức 9.900 VNĐ thay vì 10.000 VNĐ, tạo cảm giác rẻ hơn. • Mục tiêu: Tác động đến tâm lý mua hàng, khiến người tiêu dùng cảm thấy họ đang được mua với giá hợp lý.

3. Định giá cao cấp (Premium Pricing)

- Nhà hàng, quán bar, khách sạn cao cấp: cấp các dòng sản phẩm cao cấp như Coca-Cola Zero Sugar hoặc phiên bản giới hạn.

- Kênh trực tuyến: Bán các sản phẩm phiên bản giới hạn qua các trang thương mại điện tử để tiếp cận nhóm khách hàng sưu tầm hoặc có thu nhập cao.

Ví dụ: Các sản phẩm đặc biệt, như Coca-Cola phiên bản giới hạn hoặc dòng sản phẩm không đường (Coca-Cola Zero Sugar), thường có giá cao hơn sản phẩm thông thường.

4. Định giá thâm nhập (Penetration Pricing)

- Kênh địa phương: Tiệm tạp hóa, chợ truyền thống – nơi giá rẻ có thể thu hút khách hàng thử nghiệm.

- Chương trình khuyến mại tại siêu thị, cửa hàng tiện lợi: Coca-Cola tổ chức các chương trình giảm giá đặc biệt để giới thiệu sản phẩm mới.

Ví dụ: Khi ra mắt sản phẩm mới hoặc xâm nhập thị trường mới, giá thường được đặt thấp hơn để thu hút sự chú ý và thúc đẩy doanh số. Sau khi chiếm được lòng tin của khách hàng, giá sẽ dần được điều chỉnh tăng.

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Phân tích 'distribution channels' của nhóm

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Phân tích 'distribution channels' của nhóm

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Phân tích các chiến lược định giá của nhãn hàng mà nhóm đang làm

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Phân tích các chiến lược định giá của nhãn hàng mà nhóm đang làm

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Economy pricing or Penetration pricing????

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Economy pricing or Penetration pricing????

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1. What are the similarities and differences?

2. Some examples?

3. What types of businesses should use an economy pricing strategy?

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What is an economy pricing strategy?

An economy pricing strategy uses lower prices to generate higher sales volumes. Companies create "private label" products, like generic medications, or "no-frills" service offerings, like budget airlines.

It's a short-term strategy designed to undercut competitors and take market share. Like when entering a new market. Unlike penetration pricing, economy pricing is a long-term strategy that attracts higher sales volumes with permanently low prices. Big box retailers like Walmart are pros at economy pricing.

Alongside known-name brands, these retailers also sell private-label, budget-friendly products. For example, Walmart currently sells 24oz Heinz ketchup for $4.28, but they also offer their own label Great Value Tomato Ketchup for $1.78.

How does economy pricing work?

In practice, economy pricing is similar to cost-plus pricing. The sales price is created by considering production cost of an item and adding the associated costs, plus the desired profit. Economy pricing is so-called because companies market their products and services as budget-friendly. So they become widely known as a cheaper alternative to competitors.

Economy pricing strategies work because companies rely on existing customers and established demand for the product or service. They can sustain these low prices because they don't incur the same research, development, marketing and advertising costs as known-name brands. As such, private labels have much lower costs and can pass this saving on to customers through cheaper prices for comparable products.

Economy pricing examples

There are several industries where economy pricing strategies are commonly used because of the conducive market conditions. Here are a few examples.

Generic drugs

When picking up a prescription at your local pharmacy, you have probably been asked if you want the generic option. New medications are only patented for a specific period of time (usually around 20 years). After this, other players can capitalize on all the research, development, and marketing already conducted to create generic drugs, without the associated costs. For example, Sertraline is the generic name for Zoloft, the common anti-depressant. This economy pricing strategy works because there is existing awareness and demand for the product.

Retailer private label

Wayfair is a well-known e-commerce business that sells a wide selection of home goods from various household brands alongside its private-label products. Rather than branding them as "Wayfair", they have developed a series of 80+ house brands, like Joss & Main, Birch Grove, and Allmodern. All of which have their own unique identity. The strategy has been successful for the retailer. 70% of its sales come from house brands, which provide a cheaper alternative to the likes of Pottery Barn and West Elm.

Airlines

The airline industry is one of the most explicit examples of economic pricing - the cheapest fare is even called "economy". The level of service in first class or business class is far superior to economy. This includes larger seats, more legroom, gourmet food, complimentary drinks, and personalized service. The budget airline industry has also capitalized on the effectiveness of economy pricing. Price-sensitive passengers who just want to get from A to B may be happy to forgo the extra "frills", and accept lower fares without the premium service.

What types of businesses should use an economy pricing strategy?

Economy pricing strategies only work with very specific market conditions. Here are some examples.

High-demand products and services

Economy pricing only usually works if the company can generate high sales volumes, like with popular pharmaceuticals and FMCG. Products or services that only cater to a small section of the market are not suited to economy pricing. This is because companies can not generate the demand and economies of scale to make it profitable.

Price-sensitive customers

If a customer can obtain a comparable product or service for a lower price, they may be willing to switch brands, especially during an economic downturn. Economy pricing is most conducive to markets where customers are price-sensitive and non-brand loyal. On the other hand, if customers are loyal to a particular brand and are prepared to pay more for it, then they are less likely to switch. In this case, economy pricing may be less effective.

Low production costs

If the above two criteria are met but the cost of production is too high, companies may struggle to implement an economic pricing strategy. Economy pricing is only effective if companies can use economies of scale to ensure a healthy profit margin.

Economy pricing advantages and disadvantages

No pricing strategy is a silver bullet for all businesses. Economy pricing has some pros and cons that must be considered before diving in.

Advantages of economy pricing

The main reason companies adopt an economy pricing strategy is because of the positive effects on sales volumes.

Easy and versatile to implement - Pricing can be complex, but economy pricing is one of the simplest strategies companies can use. The formula to calculate economy pricing is simply costs plus a desired margin. In the case of economy pricing, the margin is likely to be lower than the market average, but sales volumes will be higher. This doesn't have to be guesswork either - Flintfox's Margin Reporting too l allows businesses to track and manage margins in real-time, maximizing profits with scientific precision, even on budget items.

Economy pricing is also versatile. Existing companies can introduce a new "budget" range without damaging their existing brand. While new companies can adopt this pricing strategy using very competitive prices and the right messaging.

Increased sales volume - Low prices mean greater market penetration. Companies using economy pricing can expect their products and services to be accessible to a greater number of customers. That's why the economy cabin of the plane is so much bigger than business and first class.

Keeps costs low - Every business wants to avoid unnecessary costs, and economy pricing is one way to do this. An economic pricing strategy forces companies to look at where they can make savings, including production, marketing costs, and branding. This strict approach to cost control means greater profits for the company and lower customer prices.

Disadvantages of economy pricing

Companies that adopt an economy pricing model must accept small profits as a reality of doing business.

Low brand equity - When you think of brands like Telsa, Chanel, and Rolex, you know that the brand names carry a certain amount of prestige and positive sentiment. Premium brands work very hard to build brand equity so customers are more likely to be loyal and more willing to pay a higher price. On the other hand, budget brands do away with big marketing budgets, celebrity endorsements, and fancy packaging, to keep costs low. The result is lower customer loyalty and more fickle consumers who will switch to another brand for a better price.

Requires specific market conditions - As we discussed earlier, an economy pricing strategy isn't suitable for every type of business - it requires the right commercial environment. For example, if a company develops a new technology that will revolutionize how people live, it would be wise to adopt a price-skimming strategy. Charging the maximum price the market will tolerate until more competitors enter the market. Or value-based pricing, charging based on the perceived value rather than the cost of production, to maximize profits. Economy pricing will only work in markets with high demand, price-sensitive customers, and low production costs.

Slim profit margins - The nature of economy pricing means that businesses will sacrifice high-profit margins in return for greater sales volumes. This can be effective with streamlined production, close margin monitoring, and economies of scale.

Implement economy pricing the smart way

Economy pricing can be a highly effective way to open up new markets and take market share from competitors, however, it doesn't come without its risks. Underpricing your products in a "race to the bottom", could leave you financially exposed and engaged in an unprofitable price war.

Smart businesses are doing away with spreadsheets, manual work (and headaches), with the Flintfox Margin Reporting tool. Empower your team to understand the lowest profitable price in real-time, give them the agility to set and forget price changes, and keep your eye on the prize.

Contact our team today to discuss how we can supercharge your business.

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What is an Economy Pricing Strategy - How Does it Work? - Flintfox

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What is an Economy Pricing Strategy? Economy pricing is a long-term strategy that attracts higher sales volumes with low prices.

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1. The marketing team is working on the campaign for the new product launch next month.

2. When people talk about the marketing mix, they refer to the four Ps.

3. The company aims to achieve revenue and profit targets.

4. She is responsible for managing the design staff.

5. He has experience in reporting directly to the CEO.

6. The team is currently working on a new marketing campaign.

7. They plan to launch the new product next month.

8. The Director of Marketing is tasked with developing and completing the marketing plan.

9. The agency is known for creating effective advertisements.

10. The company succeeded in increasing production last year.

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Product (n)

Offer & Be Offered (V, be V3/ed)

Market (n)

Consumption (n)

Satisfy (v)

Want (v)

Need (v)

Tangible (adj)

Intangible (adj)

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Nowadays there is a growing amount of advertising aimed at children. Some people think this has negative effects on children and should be banned. To what extent do you agree or disagree?

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Idea generation (n) Screening new ideas (n) Concept development (n) Concept testing (n) Marketing strategy development (n) Test marketing (n) Commercialization (n)

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Process (n) Product development (n) Profits (n) Introduction (n) Take over (v) Sales (n) Growth (n) Maturity (n) Decline (n)

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Product development

Introduction

Growth

Maturity

Decline

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As mentioned above, there are four stages in a product's life cycle - introduction, growth, maturity, and decline - but before this a product needs to go through design, research and development. Once a product is found to be feasible and potentially profitable it can be produced, promoted and sent out to the market. It is at this point that the product life cycle begins.

The various stages of a product's life cycle determine how it is marketed to consumers. Successfully introducing a product to the market should see a rise in demand and popularity, pushing older products from the market. As the new product becomes established, the marketing efforts lessen and the associated costs of marketing and production drop. As the product moves from maturity to decline, so demand wanes and the product can be removed from the market, possibly to be replaced by a newer alternative.

Managing the four stages of the life cycle can help increase profitability and maximise returns, while a failure to do so could see a product fail to meet its potential and reduce its shelf life.

Writing in the Harvard Business Review in 1965, marketing professor Theodore Levitt declared that the innovator had the most to lose as many new products fail at the introductory stage of the product life cycle. These failures are particularly costly as they come after investment has already been made in research, development and production. Because of this, many businesses avoid genuine innovation in favour of waiting for someone else to develop a successful product before cloning it.

There are four stages of a product's life cycle, as follows:

1. Market Introduction and Development

This product life cycle stage involves developing a market strategy, usually through an investment in advertising and marketing to make consumers aware of the product and its benefits.

At this stage, sales tend to be slow as demand is created. This stage can take time to move through, depending on the complexity of the product, how new and innovative it is, how it suits customer needs and whether there is any competition in the marketplace. A new product development that is suited to customer needs is more likely to succeed, but there is plenty of evidence that products can fail at this point, meaning that stage two is never reached. For this reason, many companies prefer to follow in the footsteps of an innovative pioneer, improving an existing product and releasing their own version.

2. Market Growth

If a product successfully navigates through the market introduction it is ready to enter the growth stage of the life cycle. This should see growing demand promote an increase in production and the product becoming more widely available.

The steady growth of the market introduction and development stage now turns into a sharp upturn as the product takes off. At this point competitors may enter the market with their own versions of your product - either direct copies or with some improvements. Branding becomes important to maintain your position in the marketplace as the consumer is given a choice to go elsewhere. Product pricing and availability in the marketplace become important factors to continue driving sales in the face of increasing competition. At this point the life cycle moves to stage three; market maturity.

3. Market Maturity

At this point a product is established in the marketplace and so the cost of producing and marketing the existing product will decline. As the product life cycle reaches this mature stage there are the beginnings of market saturation. Many consumers will now have bought the product and competitors will be established, meaning that branding, price and product differentiation becomes even more important to maintain a market share. Retailers will not seek to promote your product as they may have done in stage one, but will instead become stockists and order takers.

4. Market Decline

Eventually, as competition continues to rise, with other companies seeking to emulate your success with additional product features or lower prices, so the life cycle will go into decline. Decline can also be caused by new innovations that supersede your existing product, such as horse-drawn carriages going out of fashion as the automobile took over.

Many companies will begin to move onto different ventures as market saturation means there is no longer any profit to be gained. Of course, some companies will survive the decline and may continue to offer the product but production is likely to be on a smaller scale and prices and profit margins may become depressed. Consumers may also turn away from a product in favour of a new alternative, although this can be reversed in some instances with styles and fashions coming back into play to revive interest in an older product.

Having a properly managed product life cycle strategy can help extend the life cycle of your product in the market.

The strategy begins right at the market introduction stage with setting of pricing. Options include 'price skimming,' where the initial price is set high and then lowered in order to 'skim' consumer groups as the market grows. Alternatively, you can opt for price penetration, setting the price low to reach as much of the market as quickly as possible before increasing the price once established.

Product advertising and packaging are equally important in order to appeal to the target market. In addition, it is important to market your product to new demographics in order to grow your revenue stream.

Products may also become redundant or need to be pivoted to meet changing demands. An example of this is Netflix, who moved from a DVD rental delivery model to subscription streaming.

Understanding the product life cycle allows you to keep reinventing and innovating with an existing product (like the iPhone) to reinvigorate demand and elongate the product's market life.

Many products or brands have gone into decline as consumer needs change or new innovations are introduced. Some industries operate in several stages of the product life cycle simultaneously, such as with televisual entertainment, where flat screen TVs are at the mature phase, on-demand programming is in the growth stage, DVDs are in decline and video cassettes are now largely redundant. Many of the most successful products in the world stay at the mature stage for as long as possible, with small updates and redesigns along with renewed marketing to keep them in the thoughts of consumers, such as with the Apple iPhone.

Here are a few well-known examples of products that have passed or are passing through the product life cycle:

1. Typewriters

The typewriter was hugely popular following its introduction in the late 19 th century due to the way it made writing easier and more efficient. Quickly moving through market growth to maturity, the typewriter began to go into decline with the advent of the electronic word processor and then computers, laptops and smartphones. While there are still typewriters available, the product is now at the end of its decline phase with few sales and little demand. Meanwhile, desktop computers, laptops, smartphones and tablets are all experiencing the growth or maturity phases of the product lifecycle.

2. Video Cassette Recorders (VCRs)

Having first appeared as a relatively expensive product, VCRs experienced large-scale product growth as prices reduced leading to market maturation when they could be found in many homes. However, the creation of DVDs and then more recently streaming services, VCRs are now effectively obsolete. Once a ground-breaking product VCRs are now deep in a decline stage from which it seems unlikely they will ever recover.

3. Electric Vehicles

Electric vehicles are experiencing a growth stage in their product life cycle as companies work to push them into the marketplace with continued design improvements. Although electric vehicles are not new, the consistent innovation in the market and the improving sales potential means that they are still growing and not yet into the mature phase.

4. AI Products

Like electric vehicles, artificial intelligence (AI) has been in development and use for years, but due to the continued developments in AI, there are many products that are still in the market introduction stage of the product life cycle. These include innovations that are still being developed, such as autonomous vehicles, which are yet to be adopted by consumers.

Importance of the Product Life Cycle

Understanding the product life cycle can inform the strategic actions of a company or business, allowing management and decision-makers to work out staff allocation and resources, budgeting, and what should be prioritised, as well as the next areas for innovation and development.

An overview of the product life cycle is integral to marketing and promotions as well as informing long-term planning. In addition, it helps with streamlining processes within an organisation.

It is always easier to make better decisions with accurate information and the product life cycle can be an important facet of this.

When to Use the Product Life Cycle

The product life cycle can be used across your business from advertising to pricing and innovation to marketing.

A new product can be promoted as a ground-breaking or an improvement on existing products, while an established product can be promoted based on a long, successful and trusted history in the marketplace.

The pricing of your product should also be informed by the life cycle, with newer products being priced to entice buyers and more established products in their growth stage can be priced higher.

Marketing strategies can also be based around the product life cycle, audience awareness and market maturity means that a product will be marketed differently to a new and emerging product. Consumers will also be aware of a product's life cycle and will know if you try to promote a new item as something that is well-established.

Of course, those products that are in decline or have saturated the market will need a different strategy again, allowing you to maintain your position in the marketplace even as you look at reinvigorating your product or innovating new ideas.

Product Life Cycle Marketing Strategies

As highlighted above, the product life cycle in marketing is also an important consideration for businesses. Products need to be addressed differently according to their position in the life cycle, as follows:

Development Stage Marketing Strategies

You don't need to wait until your product fully launches to begin to build customer interest. You can place your product with selected voices in your industry to start to build a 'buzz' around your upcoming product or promote a limited release to create an air of exclusivity and build anticipation for the full market release. An early, limited release can create positive feedback that can be used to build awareness and excitement around your product.

Introduction Stage Marketing Strategies

With the full launch of your product you can begin to promote it in earnest. This could include reaching out to industry experts or influencers within your target market who can review and promote your product, using their endorsement to create credibility and reach a wider audience. This stage is all about educating the marketplace about the key selling points and benefits of your product.

Growth Stage Marketing Strategies

At this point the focus shifts to establishing a brand presence to create customer loyalty over any competitors. Marketing strategies at this point can include social media advertising and promotion, search engine optimisation (SEO), content marketing and partnerships with industry experts or influencers. Companies will also seek new distribution channels, add additional features and develop support services. Exploring new markets and e-commerce platforms as well as partnering with retailers could also boost your customer base at this point.

Maturity Stage Marketing Strategies

As your product reaches maturity, you may feel that you can rest on your laurels and reap the rewards of having an established product in the marketplace. However, work is still required in order to position yourself as a leader in your field and differentiate yourself from your competitors. As with the introduction stage, you could seek to educate the marketplace, except this time it will be from a position of authority, letting your customers know about the benefits of your product. This can be achieved via blog posts and industry insights. In addition, you will want to continue improving your product, offering more features for example, and informing your customer base of the improvements and their associated benefits. This will help protect your product or business as you reach the saturation stage...

Saturation Stage Marketing Strategies

Once the market becomes saturated you will need to lean into your brand and how it differentiates you from the competition. You can tailor your marketing efforts to appeal to specific customer segments in your market, highlighting their preferences and needs. As well as directly targeting parts of your market, you need to strengthen your relationship with your existing customer base. A more personalised customer interaction, new product features, special product bundles with similar items, exclusive packaging options, product personalisation, and customer loyalty programmes are just some of the techniques that are used according to product and industry. This is when the competition will be at its highest and there may not be many available tweaks to your product, so excellent customer service is vital in order to maintain a good position in the marketplace. To stay at the forefront, your customers need to know your product (and business) is the best - and you need to back it up with your product, service, and delivery. Good customer testimonials are a good addition for your marketing plan at this time.

Decline Stage Marketing Strategies

Companies don't want to see their product go into decline, but sometimes it can't be avoided. When the entire market goes into decline - as was the case with video cassettes - it might be impossible (or at least inadvisable) to fight against the tide. However, a decline doesn't always mean a total collapse and strategies such as improved advertising campaigns, reduced prices, new product features, improved branding, or even new market penetration can allow you to flourish while other, lesser products fall aside as the market balances out. The key is in emphasising the superiority of your product and professionalism, using many of the same strategies from the saturation stage. Of course, if a product goes or is going obsolete, then it is best to plan for a timely exit from the market or a pivot to new products.

International Product Life Cycle (IPL)

The International Product Life Cycle (IPL) is a way of keeping track of how you need to manage and market your product in different international markets. Companies will often explore other markets globally to avoid reaching the decline stage for their product or service. Others will seek to move manufacturing and production to other countries as well, either to meet the demands of other markets or to reduce production costs.

The stages of an IPL are the same as those for a normal product life cycle, although some stages may be approached differently to take account of local customs and cultures as well as regulations. Exploring other markets gives you the opportunity to learn from prior mistakes and innovate into new regions. An IPL will not prevent decline altogether as competitors may also decide to move into the same markets, creating a shift in life cycle stages towards saturation and decline.

The marketing theory behind product life cycles interacting with international trade was developed by Harvard Business School professor Raymond Vernon in the late 1960s, to take account of trends in international trade.

Vernon stated that products in international markets had three phases; new products, maturing products, and standardised products. He believed that products would perform best in their country of origin as this would keep manufacturing and production costs low. However, once demand increased, companies can start exporting to other countries, as well as building local production plants in each new location. These plants would provide the flexibility to make changes to a product locally, without incurring large costs.

As with the saturation phase of regular product life cycles, which grew from Vernon's original theory, he said there would be an influx of competition once a product entered its standardised phase. At this point companies need to reduce production and manufacturing costs to stay competitive, as well as exploring new markets or products to begin the life cycle process again.

Understanding how a product's life cycle works allows companies to work out whether their products are meeting the needs of the target market and, thereby, when they may need to change focus or develop something new.

Examining a product in relation to market needs, competition, costs and profits allows a company to pivot their product focus to maintain longevity in the marketplace.

Knowing when a product is going into decline prevents your company from following as a result of being overly reliant on a fading market. A product life cycle strategy means that you can reinvigorate an existing product, develop a new replacement product or change direction to stay abreast of a changing marketplace.

While all products have a life cycle, many of the most successful ones are able to maintain the mature stage of the life cycle for many years before any eventual decline.

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What is a Product Life Cycle? (Definition, Stages and Examples)

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What is a product life cycle? A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market.

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I’m sorry but I can’t make it to your meeting on Friday

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I’m sorry but I can’t make it to your meeting on Friday

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Definition + Example

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another word for product launch

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special features or services that customers have to pay more money for

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reduced price

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to sell a group of things (like products or services) as a package

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when a customer pays the same fee each month/year/etc.