Iqbal and his marketing director jacqueline jacobs

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Iqbal and his marketing director, Jacqueline Jacobs, first designed a direct marketing strategy focussing on low-income consumers who were generally neglected by Unilever He knew that his competition did not deal directly with the end consumer or the retail outlets used mostly by low-income consumers (sometimes termed Bottom of the Pyramid or BoP). As part of its strategy, Bliss Chemicals established roadshow teams, which went directly to end consumers in the more rural areas of Limpopo and Mpumalanga provinces to develop demand. Thus, Bliss avoided rather than focusing on Gauteng province, the economic hub. Bliss Chemicals were initially refused entry into the formal retail sector. In response, the company then deployed their roadshow teams to give out free samples of MAQ to the end users. The intention was to convince a sceptical and risk averse market that their product worked. Once consumers started to know the product, they would demand it from their retail outlets such as Spaza shops (Bliss Chemicals, 2014) and other retail outlets who would otherwise not stock a product unless the customer already demanded it. b. Pricing Strategy (10) Page 7 of 12
A pricing strategy is a policy a company adopts to determine what it will charge for its products and services. Strategic approaches fall broadly into three categories of cost-based pricing, the competition-based common factor among pricing strategy, in the end, the total revenue generated from the price set multiplied by the units sold has to cover the cost of operation and to allow a sufficient profit margin, which secures an acceptable return on investment. A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors. ... Penetration pricing: price is set artificially low to gain market share quickly Bliss Chemical used the penenetration pricing stratergy. Price penetration is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. The lower price helps a new product or service penetrate the market and attract customers away from competitors. Market penetration pricing relies on the strategy of using low prices initially to make a wide number of customers aware of a new product. The goal of a price penetration strategy is to entice customers to try a new product and build market share with the hope of keeping the new customers once prices rise back to normal levels Bliss avoided rather than focusing on Gauteng province, the economic hub. The BoP sector of the market. was traditionally avoided by marketers who considered it unprofitable.

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