Pricing Strategy Consulting Business Essay Example | Topics and Well Written Essays - 1750 words

determine Strategy Consulting Business - Essay ExampleOut of the three options, the most profitable and widely veritable one is number three. Most organizations falsely believe that they are competent at determine, whereas the case is tout ensemble different (Daly, 2002, p. 1). Thus, it is necessary to expense the product at a right price in dedicate to attract the rank market and gain profits. This paper aims to discuss the set schema adopted in the launch of a new product. The scenario describes a company launching a new product. The organization has sought-after(a) the help of a consultant in deciding upon the price. The client deals with luxury goods and has decided to launch odourise targeting the high-end segment of the society. The perfume introduced will be segmented both for men and women. indeed, it is necessary to decide upon the price so as to attract the consumers and make the product profitable and well accepted by the target market. The client has asked the help of the consultancy in deciding upon the pricing of the product. The business deals in luxury goods as a result, they fundamentnot charge a comparatively low price as compared to its other luxury goods. Therefore, pricing strategy should be decided based on the product and the business strategy which it has adopted for over the years. determine Policy Pricing has been termed as one of the important aspects in branding and marketing strategy as pricing is considered one of the first and foremost indicators of a brand positioning with respect to its consumers. Pricing is to a fault the most flexible factor out of the 6 Ps of marketing mix as it can be modified at an ease (Okonkwo, 2007, p. 140). Pricing policy determines the way or the technique apply by the company to set its prices for its product. One of the simplest ways to set price is through uniform pricing policy. The most profitable pricing policy is the price discrimination because in this case each of the social uni t is priced based on the benefit that the unit provides to its respective buyers. The next profitable pricing policy is form segment discrimination. Here the seller should be able to directly identify the various potential segments. following to direct segment discrimination is the indirect segment discrimination. The least profitable pricing is the uniform pricing. Therefore based on the above discussion, it would be advisable to the client to adopt the pricing policy of collar price discrimination as in this pricing policy the marginal benefit equals the marginal follow which would benefit the client. Each of the buyers would be charged a maximum price that the customers are willing to give and it is applicable as the product is targeted to the high-end segment of the customers. This pricing policy would extract a much higher(prenominal) price for its units that would be sold (Png & Cheng, 2001, p. 1-3). There are six steps in setting the pricing policy which includes selecti ng the pricing objectives, determination of demand, estimating the cost, analyzing the cost of its competitors, selecting the pricing method and finally selecting the final price (Kotler, 2007, p.241). work up 1 Pricing Policy (Source Kotler, 2007, p.241) Analyzing the best price setting process used to establish sustainable and profitable prices In order to establish a sustainable and p