based on the segmentation which they targeting on working adults who aged between 25 to 35 years old and belonged to high income groups. These groups of customer are fewer prices sensitive than low income people, they have high ability to afford the luxuries and yet they are willingness to spend on higher prices toward on premium price ice-creams. Since consumers are able to obtain more value from both companies which they are able to enjoy good taste of ice-cream with good design in comfortable environment by paying a higher price. 14
BBDT3193 Pricing Strategy 3.1.2 Price Structure The next step that to build the strategy of pricing which to establish a price structure that aligns the price with the value provided, and yet includes scaling for different customers once the company know what value are created for different segment of customers. To set a price structure for this level of pricing strategy, there have two approaches which consist of price metrics and price fences. Price fences are defined as to charge different customer with different prices, yet there have several types of fences and each types will have different meaning. Both company of Haagen-Dazs and Tutti Frutti have good value segmentation which they are able to facilitate the creation of the product or services offerings. In order to gain more competitive advantage and to better cater customers, both companies has conducted market research so as to further understand about the price sensitivity level of people since different groups of customer have different level of price sensitivity. By doing market research, both companies are able to divide a market into subgroups whose customers have common criteria that differentiate their buying behaviours. Besides that, both companies adopting the pricing strategy are based on the customer’s price sensitivity level. In term of pricing strategy that Haagen-Dazs adopted is times purchase fences , they argument price based on the time. The company will charge lower prices at times when it would be inconvenient for them to purchase and charge higher product prices at time when the consumers are less sensitivity of prices naturally purchase. Haagen-Dazs creates sweet treats promotion which offering discount price RM15 of either hot ice-cream drinks, parfait & coffee or tea or double scoop cone during weekdays until 3pm (Refer to appendix 5). However, consumers who are more price sensitivity will often buy Haagen-Dazs premium ice-cream during that time. Furthermore, Haagen-Dazs also has implementing another price fences which is segmenting by purchase quantity fences . The company charge different prices for different quantities of ice-cream, and yet Haagen-Dazs know that large volume consumers will be more price sensitivity therefore they offers promotion based on consumer’s total purchase volume. Haagen-Dazs encourage customer to place larger orders, they offers free ice-cream promotion which encourage consumers to purchase any 2 cups or cones
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- Summer '19
- Marketing, ........., ice cream, Baskin-Robbins, Irvine Robbins