It is also generally used once a price of a product has reached a level of

It is also generally used once a price of a product

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remain similar. It is also generally used once a price of a product has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product. It is completely suitable for Baskin Robbins to use this strategy because Baskin Robbins has a history of 71 years old in the market and there are a lot of substitute products of Baskin Robbins which are Haagen Dazs, New Zealand Natural Ice cream, and London Dairy Ice cream. Baskin Robbins also has conducted market research to know more clearly about which market it should be targeted on to provide better needs to the customers. Baskin Robbins also able to know it should narrow or broaden its focus. By conducting the market research, Baskin Robbins able to know which age group will more prefer which flavor of ice cream, what income level of people will more willing to buy its product, or what flavor of the ice cream is more favor by the customers. Once Baskin Robbins has targeted on the correct market, it can create more loyal customers to purchase and consume its product. After having loyal customers, it helps inspiring people to spread the word about Baskin Robbins and what business is it doing. It can also help Baskin Robbins to generate more sales because there are loyal customers and also new customers keep on increasing. In addition, Baskin Robbins also uses segmenting by volume or purchase quantity. Baskin Robbins encourage customers to place larger orders, which almost always result in cost savings for the seller. The customers who purchase half gallon of ice cream is cheaper than the customer who purchase one pint. The original price of the half gallon is RM88 with 1385gm, so it is RM0.06 per gram of ice cream. However, the original price of one pint is RM25.50 with 350gm, so it is RM0.07 per gram of ice cream. From this, we can see that the customer who has purchased half gallon can save more because he has save around RM0.06 per gram. 7
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BBDT3193 Pricing Strategy The third level of the strategic pricing pyramid is the price and value communication . A successful pricing strategy must justify the prices charged in terms of the value of the benefits provided. Developing price and value communications is one of the most challenging tasks for Baskin Robbins marketers because of the wide variety of product types and communication vehicles. The first value communication of Baskin Robbins is by adapting the message for product characteristics. There are two types of product characteristics which are relative cost of search for information and the type of benefits sought. The relative search cost if Baskin Robbins is high because Baskin Robbins have differentiation attributes that are more difficult to evaluate across the other brands and also requiring the customer to invest substantial time and effort to evaluate the products before purchasing. So, Baskin Robbins is considered as an experience good. For examples, a typical buyer would like to have to try different brands other than Baskin Robbins to make the inferences. After that, they only able to know that which type of ice cream is
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