In a situation operate several chains of restaurants

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In a situation operate several chains of restaurants under one umbrella organization, for example, you can provide different dining experiences to the same customer who is looking for different things at different times. Firms that have effectively conducted proper product analysis develops a successful product mix strategy based on analyzed existing products for market growth and market share. It is notable that results of product mix analysis allow the management to make appropriate market resource allocation as well as business decisions to maximize profitability for the existing products and making long-term product
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7 mix decisions. It is largely agreed that the best product-mix analysis and conclusions should emphasize on products and customer segments with highest profitability potential and business revenues. Product pricing and elimination It is evident that product pricing is an essential aspect that contribute to success of businesses. In situations where a business price products too low, it may have some level of profitability while on the other hand when product pricing is too high the demand for such products may decrease (Helgesen, 2006). There are several factors that require firms to take into consideration when setting prices which include the cost of producing, demand of the product, targeted profitability of the business and the market competition. Intelligent product pricing and elimination is therefore an important element of successful business ventures. It is important for investors and entrepreneurs to understand adequately product pricing and elimination components and strategies before launching new businesses. Generally, it is important to have a deep understanding of market environment, distribution costs and competition keeping in mind that these factors can be adjusted. Since product pricing is one of the core most important factors in determining whether a business will be successful, business managers should continuously review their product pricing and elimination policies and strategies to ensure that they remain in keeping with marketplace business environment realities. Business environments can be dynamic, change quickly, and the successful businesses will learn to change pricing strategies accordingly. According to Kotler et al (2015), there are six different circumstances or situations where businesses or firms can review their product pricing and elimination strategies to remain profitable in terms of customers and products.
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8 The circumstance include when introducing a new product or product line; when attempting to break into a new market; when testing for the best price; when competitors change their prices; when weighing major changes in sales strategy and when general economic conditions become inflationary or recessionary. Underlying these noted circumstances any significant change in any aspect of a business's operations including changing premiums or rising costs prompts the need to revise and review company pricing and elimination strategies. The notable product pricing strategies pertinent to product and
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