Question

In discussion with the Marketing Mix, specifically 'Pricing', what are the pricing strategies in the context of that brand the Australian Company 'Haighs Chocolates'? Please explain your answer.

In the discussion you are expected to provide support to your argument based on either research and/or theory discussed in the lecture and/or industry reports about Haighs.

Rubric Marking: High level demonstration of understanding of the relevant concepts in price. Excellent arguments with respect to critique and connection of the concepts with the chosen brand. Discussion and application extend beyond expected level. Connections, Comparisons and/or Examples have been successfully incorporated into the discussion and convincingly argued.

Answer 1

Answer:

Haighs chocolate is one of the best quality chocolate brand which is oldest in Australia. It specialises in hand made chocolates and is widely used in the festive seasons and other occassions. There are strengths and weaknesses in the market for the haighs chocolates.

Strengths:

1. It is established in Australia olden times and is known to public.

2. It offers a good quality chocolate since it is made in olden times in Australia people are aware of its taste and quality.

3. Its demand is rising day by day.

4. Customers are having positive response to haighs chocolate.

5. It provides tours to see how this chocolate is made and it's process.

Weaknesses

1. It is consistent to its taste and quality.

2. It has got a single flavour and hence it has good taste which doesn't vary .

3.it doesn't expand its business. New flavours and experiments are not made.

4. Certificate has not been provided to it.

Threats:

1. Many competitors has entered into the market with haighs.

2. Branded chocolates are always preferred in market.

3. Existing ones are coming with new variety items..

4. People are now a days very conscious about their health .

Pricing is the most important thing for a product.

Questions like whether right price is being charged for the product, what value dies customers have , if price decrease will demand increase etc .

1. Market penetrating price: this strategy is used to capture market price for the product.it involves setting lower price for the product to attract the customers. This strategy is useful when demand of a product is high. When low price is set for a product then there will be less competitors to the product.

2.price set in neutral. When a price is set same as that of other competitors then there will no margin of profit.

3. Price skimming : which means price of the product is setquite high. There is no compromise in the price of the product in market. It never minds the competitors prevailing in the market.

4. Marginal cost pricing which means marking the cost of production equal to extra cost in producing the cost of product.

5. Price of a product has a psycological impact on pitching up the sale of the product.

6. Cost plus pricing: under this strategy cost of the product is arrived at adding the total cost of production, labour, other direct and indirect expenses and a markup percentage is added to it.

7.the organization sets up a price of a product high inorder to pitch up the sale of other product.