This paper will examine the role of pricing in three local companies Essay Example

This paper will examine the role of pricing in three local companies Essay This paper will examine the role of pricing in three local companies: * McDonalds * Starbucks * Tesco We will write a custom essay sample on This paper will examine the role of pricing in three local companies specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on This paper will examine the role of pricing in three local companies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on This paper will examine the role of pricing in three local companies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The following introductory information provides an understanding of the role pricing plays in business, the different types of pricing policies and why they are implemented. Following the introduction, each companys pricing policies will be examined individually. Pricing plays a critical role in any marketing strategy and affects the profits and revenue that a company will eventually earn. According to The Entrepreneurs Guidebook (2001), to establish an effective pricing policy, a company needs to: * Define pricing objectives * Establish a simple yet effective pricing structure taking into consideration all business costs * Choose a pricing strategy that helps to establish a market presence * Adapt a general pricing policy in response to trends, industry practices and new innovative pricing strategies to help solidify a competitive position within the marketplace Any business, regardless of the industry needs to base a pricing plan on the companys goals and objectives. That means that pricing policies need to be closely aligned with the overall business and marketing plans. When setting price objectives, companies need to consider the effect that these prices will have on (The Entrepreneurs Guidebook, 2001): * Sales volume * Sales revenues * Market share * Competitive advantage * Company image * Profitability Determining the right type of pricing structure requires a strong understanding of the relationship between pricing and each of the factors listed above. Specific information needs to be defined before establishing a pricing policy. Detailed research and a close examination of each of the key factors needs to be completed before a qualified pricing plan can be implemented. Pricing is viewed differently by consumers than companys that set the pricing structure and it can be viewed as either a deterrent or reason to buy. Companies need to understand the effect that price can have on their overall marketing strategy. According to The Entrepreneurs Guidebook (2001), pricing objectives must take into account one or all of the following goals: * Increase sales volume * Increase sales revenue * Keep or build market share * Meet or prevent competition * Target low-cost buyers * Increase profits or ROI, such as each 15% ROI or increase market share by 30% by end of the fiscal year Pricing reflects a lot about a company and coincides with their financial history, company mission, values and revenue objectives. No matter what industry, the prices that are charged depend on a number of factors: * What it costs do to business-operating costs, inventory, etc. * Profit goals * The competitions pricing structure * How your product is valued, i.e. customers assessment of the value According to The Entrepreneurs Guidebook (2001), there are several different pricing strategies that can be implemented: * Break even pricing * Buying a market position pricing * Competitive advantage pricing * Discount pricing * Full-cost pricing * Keystone pricing * Loss leader pricing * Matching the competition pricing * Multiple unit pricing * Odd pricing * Penetration pricing * Pre-season pricing * Price -is-no-object pricing Companies like McDonalds, Starbucks and Tesco have developed pricing structures, based on their industry and their competition. But each company also has a pricing policy that is tied closely to profit goals and cost structures. The fact that these three companies are in very different industries and markets provide a sampling of different pricing structures. Advertising plays a major role in both McDonalds and Starbucks but probably not as much for a local Tesco store. Their big draw is word of mouth and their rewards program for their customers. Shoppers can see for themselves if the items they are buying are fresh and have the quality they are looking for. Buying a cup of coffee or a fast food hamburger is different. No matter what type of pricing strategy is used, companies must constantly evaluate the effects that their strategy is having on their overall success. McDonalds The fast food marketplace is highly competitive and strategies for providing consumers with offerings they will want requires pricing that will produce long-term results and keep customers coming back. According to Marc Ballon of the Los Angeles Times (2001), McDonalds is working to shore up its domestic operations, largely by tightening operations and encouraging franchises to offer consumers better value. McDonalds conducted extensive research into sales and customer count, competitive offerings and prices and began to create value offerings for $.99. After testing certain segments of the marketplace, they launched a discount pricing program. By cutting down on operating costs and improving efficiency, the savings can be passed along to the customer. The customer believes that they are getting a bargain through special pricing. McDonalds continues to outpace Wendys and others with annual sales of over $1.6 million. Their discounted pricing strategy does pose some problems, particularly with maintaining high quality and service. Although McDonalds has faced some economically hard times, they continue lead the competition because of their brand recognition and perceived value for the price. Now, the bigger challenge that the company faces is trying to create healthier fare to meet consumers changing tastes. Competition is a key factor in McDonalds pricing and as the market continues to be flooded with newcomers offering different and healthier fare, the current pricing structure may change. Discount pricing may no longer provide McDonalds with the revenue stream they need to meet their goals. Matching the competition may be a better tactic or using some type of multiple unit pricing in some cases by offering two for one or some type of multiple and desirable pricing to entice the consumer. Starbucks Starbucks is in a fairly unique position as an industry trendsetter catering to upwardly mobile young successful business people. In this case, money is often no object and their pricing policy reflects that. Their pricing also reflects their image, which caters to a more affluent client. This targeted group wants to be recognized and admired for their ability to buy Starbucks coffee. Its almost a status symbol among yuppies. As for the company, their strategy clearly says we are worth more so we are charging more. You wont see sale or discount signs in Starbucks. According to The Entrepreneurs Guidebook (2001), this pricing will only work if the product or service is: * Highly innovative * In demand * One of a kind * Threatened by little or no competition * Within a market where price is less important than other factors Starbucks has been able to be successful using this strategy but one disadvantage may be that they are losing potential customers because they are perceived as too expensive. Why pay $3.00 when you can pay $.90 somewhere else. The average customer wants a good cup of coffee not a boutique cup of coffee. Starbucks remains successful because their pricing policy supports their marketing strategy. Tesco Food sales have always been a playing ground for pricing wars and over the past ten years, Tesco has taken an aggressive approach in the marketplace. Although they remain highly competitive as far as pricing, they initiated a club card program that provides discounts and rewards for loyal customers. Supermarket chains across the country constantly try to beat their competitors and Tecso is following suite. They have based their strategy on being highly competitive and by providing a wide selection of products. According to Loop Consulting (2000), in the grocery market it would appear that you could compete on price and service but the two may be mutually exclusive. In a price war, the only way to win is by reducing the overall cost base, no the profit margins. Once a price has been reduced, it is less easy to return prices to their previous level without alienating customers. In fact, it will encourage shoppers to go wherever the price promotions are. So Tesco, although they implement pricing promotions are relying more heavily on their club card program, not only for customer loyalty but also to learn more about their customers buying habits. This can be an effective tool in planning promotional selling. Tesco must also consider competitive pricing policies based on what the competitors are charging for the same or equal products. The rule of thumb here is that even though less is being paid for an item, the company will make up the revenue on volume sales. Tesco closely follows its competitors pricing policies.

Mutter Museum Sample Essay Writing

Mutter Museum Sample Essay WritingA Mutter Museum sample essay writing assignment can provide you with ideas for a dissertation topic. However, this article is going to provide you with a list of some possible topics that are more current than the other ones. Here is an outline of where you might want to focus your research and provide you with some ideas to get you started on the right track.The primary focus of the Mutt House museum is Victorian America. You could choose to examine some of the most famous American and perhaps, most infamous Americans that have lived at this time in history. This could range from a variety of sources from census records to online articles to books about these people.The plot of the short story and novel The Monster at the End of This Book has a lot to do with Mutt. You could use this to portray a monster or even a dead one roaming around as an inhabitant of the Mutt House. There are so many ways to go about this topic.A quote from one of Shakespeare 's plays would be a great way to bring a strong connection between Shakespeare and the subject of Mutt. However, it is not always possible to locate a direct quote from a play to go with your research. You could still use this to help you demonstrate that the subject matter can relate to and be discussed in the real world.The topics for your essays might vary from the three mentioned above. When choosing a topic, be sure to consider several of the following points. The first is how the topic relates to history. You will want to choose a topic that is historically relevant.You will also want to choose a topic that you can talk about when it comes to writing this type of article without having to make as much as research as you would with other types of writing. You will need to be able to talk about your topic without too much research on your part. This makes the process of writing faster and easier for you.A short story like The Monster at the End of This Book that happens to have been written by a famous author might be a good example of what can happen with the topic of a sample essay. There are so many things to talk about and so many things to discuss that you may find yourself enjoying the whole thing. You could write your own short story as a research subject or use one of the many sample stories on the website.By taking a look at these options you can see a great way to use the museum tour in Mutt: A History in the planning of your essay. It is possible to get quite detailed and go into a lot of detail. However, by picking a theme and starting out small, you can move forward and get to the point of discussing your topic and exploring the theme in the future.