Marketing strategy essay
Pensonic portable mini fridge use the value-based pricing to set the product price. It offering just the right combination of quality and good service at a fair price. Pensonic first to assess customer needs and value perceptions, then tried to set the target price to match customer perceived value, after that determine the costs that can be incurred and finally design and produce to deliver value of target price.
The new product pricing strategy used by the Pensonic Company is skimming pricing strategy. The company set a high price for a new product and some of the customer are willing to pay so the company can earn but the company still make fewer sales because not every customer are willing to purchase or buy at high price.
So the company will reduce the price of the product because market are highly price sensitive and when the price are low the market acceptance and growth are higher compare when the price are higher. Besides, this strategy can attract a large number of buyers and win a large market share as their objective they want to win or maximize high market share but in order to win high market share the company need to keep the competition out of effect, as we know Pensonic company have many competitor like Panasonic, National, Sharp and ext. Price adjusted strategies using by Pensonic are promotional pricing which they will reduce the price of the product to increase their short run sales.
This price adjustment can be use by offering special event pricing; the company will do this type of promotion in certain period of time or season to attract more customers. Even they also provide customer free maintenance and longer warranties during the event.
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Furthermore, they also use psychological pricing, this meant that the price is not too high or too less because most of the customer think that the higher the price better the product quality and vice versa so in order to overcome this they will make sure that the price is suitable for the product and its quality. There is a factor which can affect the pricing condition which is pricing in different market.
Pensonic mini portable fridges are under monopolistic market. Monopolistic market have many buyer and seller of differentiated product at different price but the buyer are price sensitive compare to perfect competition market which is less sensitive because that market are price taker so they must follow the price list provided by the government. Since monopolistic are under price maker they can gain profit. Market Opportunity Every company perhaps need to know their product faring among the competing brands, they may to assess the brand awareness after the advertising and promotional campaign to find out the level of customer satisfaction.
However if the products launched in the market and its cannot gained much attraction of the potential customers, the company is currently facing the market problems. Marketing problem that facing by Pensonic Holding Bhd are their product image. Pensonic brand does not have a reputation as being compatible with the corporate world. Besides that, their home appliance brand are not targeted towards business people as their income is upper-upper classes, they are able and willing to purchase a large quantity of these appliance compare with ever family. This cause them to earning the less profits.
Marketer research found that market needs by the Pensonic Holding Bhd are increasing in demand by keeping and growing current customers by satisfy their need and want such as delivery and credit, warranty, installation and so on to building the strong brand. It will provide a high level of consumers brand awareness and loyalty. Pensonic brand also need to expansion to a new target segment by offer more differentiated product other than home appliance to develop a stronger positioning within each market segment and creates more total sales. Besides that, Pensonic also need to develop the long-term partnerships with the other powerful brands.
Pensonic can collaborate with many powerful home appliance companies to penetrate the market which reduces costs in marketing and increase revenue through long-term agreement deals while at the same time, creating a brand awareness as a trusted brand in the market. The home appliances company in Malaysia is currently facing shortage of green product in the market. The home appliances company dares not to start practice on green initiatives due to the lack of experience and knowledge in his field.
Some of the companies have the abilities to start on practicing green initiatives but they do not do so because they think that this green concept will not highly supported by the customers in Malaysia. In fact, Malaysian lack of awareness and knowledge about the green concept compare to other countries. Lack of technology is also one of the deterrents for a company to go green. Besides that, financial support is also playing an important role to determine the company decides to go for green.
Pensonic home appliances company has a wide market in Malaysia. Home appliances had become the undifferentiated product for ever family. Almost every family needed for home appliances.
This has become a necessity for every single family. Due to this situation, Pensonic can take this advantage to come out a green product which can help the consumers to save some cost for example electrical fan that can reduce the energy usage. Currently, Malaysian is facing financial distress due to the economic downturn.
People are suffering from the high charges of electric fees and petrol. This situation can bring motive to Pensonic to invent some green home appliances that can help the consumers to reduce some of the living cost for example a green refrigerator that can minimize the usage of electric. Therefore, the consumer not only can save some money yet also playing a role of saving the earth for reducing the pollution. Pensonic has been established since It is the first ever home appliances company in Malaysia. Pensonic currently is the one of the famous and the best of the home appliances company in Malaysia.
With the twenty-nine years of experience, Pensonic has the priority and potential to start practice on green concept. In term of financial support, experience, technology and resources, Pensonic has the high brand equity in Malaysia. This is an advantage for Pensonic company, since the company had already built the consumers confident. Having high brand equity will also lead the consumers to less worry of the price.
The consumers normally will accept the price that is set by the Pensonic. Loyal consumers will keep on supporting and repurchase goods from Pensonic. Furthermore, Pensonic able to save some of the cost from advertising due to the loyal customers or experienced customers will share and spread the news or experience to their friends and family members. Practicing on green initiatives not only can retain the customers yet attract more new potential customers.
Therefore, Pensonic is highly encouraged to start on practicing green concept. If Pensonic successfully practice on green initiatives, this will greatly improve the brand recognition as well as brand equity for Pensonic.
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In my opinion, I recommend that Pensonic should start the green practices from organizing green campaign. Through this green campaign, Pensonic not only can promote their product yet also giving green awareness to the customers. In this green campaign, activities like planting trees, green talks, green drawing contest and others activities which will greatly knowledge the customers to go green. During this green campaign, Pensonic can use this opportunity to introduce the products to the customers and demonstrate on how to operate the products.
Through this green campaign, Pensonic able to save a lot of cost in advertising. Other than organizing green campaign, Pensonic can support the green concept through the charity or donating some funds to the green organization. By supporting the green organization, Pensonic able to improve its brand recognition as well as to prove the quality of their products. In addition, joining into the charity or organization can also help Pensonic to reduce in advertising cost too.
In rder to make more customers support or concern about going green, Pensonic can come out some strategies to attract more customers for instance customers who purchase one single green product from Pensonic, they able to get discount, vouchers, and others benefits.
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This not only able to catch attention from the customers yet also increase more customers to support on green products. There are also some several green practices can be implied into Pensonic company. Instead of using the plastics bag, Pensonic can provide biodegradable bags to customers. Encouraging customers to bring their own bags is also one of the ways to practice on going green.
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In order to encourage customers to bring their own bags, Pensonic can give a discount or award some points to customers who bring their own bags. Reducing in plastic bags usage will help to minimize the environmental impact. Besides that, Pensonic can also set a day in a week as a green day to remind the customers to go green. Promotion will be given to every customer for those who purchase on that particular day. Doing this weekly green day promotion not only help to improve the sales yet promoting their product to others customers.
Apart from that, Pensonic can also create or invent some green products and sell it to the market. One of the examples is the invention of Pensonic mini portable fridge that able to save energy usage and lower the environmental impact. This product will be supported by many customers since people in Malaysia are suffering the higher charge of electrical fees. Customers will choose to buy this product since its function give benefits to the customers in Malaysia.