multinational corporations Nestlé and Mars sell millions of candy bars

Multinational corporations nestlé and mars sell

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multinational corporations Nestlé and Mars sell millions of candy bars, chocolate at checkout stands and in candy aisles across the U.S. (A handful of companies control the food industry, n.d.). In order to remain competitive, they each must maintain an equivalent price point and adjust to each other’s pricing changes. The other two objectives are clearly delineated by Tanner and Raymond (2015) to include profit-oriented goals such as maximizing profits and achieving a targeted return on investment (ROI), and sales-oriented goals such as maximizing market share and maximizing sales.
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Approaches of profit-oriented pricing objectives are used by companies like Apple. (Barten, 2017) Apple products are almost always the most expensive in their category. The company is considered innovative and a producer of high- quality products, so they rarely would consider a sales-oriented strategy of sales or discounts in order to maximize the volume of their sales. The goal of sales-oriented pricing is to sell as many units as possible to generate maximum profits based on volume. Pricing is often set according to their competitors’ prices and it may be the only feature that differentiates the product or service. An example that illustrates this point is the airline business. This market dynamic is very competitive and for the most part exclusively based on price and not the value of the product or service. (Lumen Learning, 2016)
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