24 BBDT3193 Pricing Strategy 40 Recommendation According to the current pricing

24 bbdt3193 pricing strategy 40 recommendation

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24
BBDT3193 Pricing Strategy 4.0 Recommendation According to the current pricing strategy, we can know that the Baskin Robbins is in the maturity phase . Baskin Robbins is a well-known and famous premium ice-cream in the market. It has created strong brand retention in customer’s mind. Due to famous brands ice-cream, Baskin Robbins has its own customer base. Those customers are the high knowledge, price sensitive and repeat purchase buyer. Those customer believe that high price high quality concept, so that they more willing pay high price for the Baskin Robbins ice-cream. While, the Baskin Robbins will provide the best and high quality for their customer, so they customer will more willing pay for the price and think that the price is worth for the quality of ice-cream. Those repeat purchase buyers will easily become loyal customer for the Baskin Robbins and won’t easily shift to competitor. This can help the Baskin Robbins reduced in marketing costs because they no need do more on advertisement to attract customer. After build the loyal customer, 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. The loyal customer can promote the Baskin Robbins ice cream through word of mouth. This is the most useful tools to attract new customer. There are many ice-cream companies in Malaysia, so will lead to strong competition in the ice-cream industry. So, all of them need to clearly define themselves in the market. They need to know which groups of customer they are targeting on so can easily know what they needs and want. So, the company can easily produce the ice-cream to attract the target customer and gain profit. Baskin Robbins segments their market in the wealthy middle to upper class adults. It is considered the main target of Baskin Robbins because higher income of people will not too care about how much they pay for a product and they are more willing to spend more money. Due to Baskin Robbins in the maturity phase, it cans shakeout to stable group of competitors. It also can gain more market share in the ice cream industry. Baskin Robbins has the low variable cost and high contribution margins. It also has the profitable market segmentation because it segment on those middle to upper income group. To prevent the Baskin Robbins turn in to the decline stage, it should take some action. The Baskin Robbins should expansion of product line . Baskin Robbins are selling ice-cream, ice-cream cake and also coffee. The Baskin Robbins may need to expand the product line to leverage its position in the market. The Baskin Robbins cans expansion the hot waffle in its product line. Baskin Robbins ice-cream put on the top of waffle, cold and hot dessert. This will be good desserts that can serves to Malaysian. It also can attract the waffle lover. It also can increase the market share of Baskin Robbins in the market.

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