Marketing and Promotion
Pricing Strategy
A company can increase its profits through 3 general ways: (1) selling more; (2) cutting costs; or (3) increasing prices. The easiest of three, is the last one – increasing the price for products. However, there is a significant risk in a simple increase of price. Such action may result in customers buying less of your products or customers shifting to competitors for similar products at lower price.
Pricing strategy is a very important component of marketing goods/services and needs careful consideration. An analysis of fundamentals of value around the trade-off between the benefits a customer receives from a product and the price they want to pay for it is necessary. Customers do not buy exclusively based on price and are driven on value buoyed by the disparity between benefits a product offers and the price that is charged.
Study of the pricing strategy and opportunity can help to identify price assumptions and answer questions of where price vs. product trade-offs lie, as well as where extra value can be delivered. Pricing studies take numerous factors into consideration, e.g. trends in the market that could affect perceptions, product inertia, history of the marketplace, etc. Our studies will help client understand the trade-offs that customers make when buying products by using various price-sensitivity models.
Project on a Glance
Marketing Study and Brand Promotion for Shymkent Tires Enterprise,
Shymkent Tires Enterprise is the only Central Asian producer of wheel tires. It is engaged in production of tires for light vehicles and road freighters, agricultural machines and special equipment. The enterprise was built in 1975 and its products have been extensively used by Russia’s assembly plants like GAZ, VAZ, and KRAZ. In addition to Russian market, the tires are also exported to Hungary, Bulgaria, China and Afghanistan.
The Consultant was hired to assist Shymkent Tires Enterprise to expand its operations in Central Asian market, especially in Uzbekistan, where light vehicles and city buses are assembled. Tasks involved identification of the market capacity, product structure of the market (market segments with division on types), analysis of market trends, import structure analysis, prices comparison and analysis, identification of optimal market prices, recommendations on terms of delivery and payment, used in most channels, and preparation of unique trade proposal for dealers and distributors.
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