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Branding, Pricing and Distribution
Domestic and Global Branding Strategy
The best strategy should cater for the product both locally and globally. Although, some organizations use different names when the product reaches the international markets, it is best to create a brand that is effective both locally and internationally (Beamish & CIM, 2006). In this case, the product will be named in accordance with the targeted consumers, in the case of a new product. For example, a product can get a female name if it is intended for the female consumers. In case of an old product, the organization should try and relate it to a particular targeted market. For example, the organization can associate some brands with children, male or female depending on the products nature. Since there are body-lotion brands associated with women, the organization can associate their lotion brand with the males. In the market today, most people associate the brand Johnson & Johnson with babies, while the Colgate toothpaste is associated with families. Associating a brand with the targeted market segment attracts the consumers in that segment from a personal perspective. They easily personalize the brand.
Optimum Pricing Strategy
The aim of the organization is to attract consumers from all segments. This means that the pricing strategy is quite significant. Since the average and the low income earners are keen on the prices of the product, the organization should choose a strategy that has a positive impact on the prices in terms of the product affordability. The first step is to identify the aim of the pricing. In this case, the aim is to establish the price stability, especially during the period when the economy is not as stable as it should be. The other step is to determine the best pricing for the organization, both from the organization and consumer perspectives. In this case, the best pricing is economy pricing. Economy pricing allows the organization to cut down on costs, thus, gaining significant profits even with the unwavering prices (Grewal & Levy, 2010). The other step is to determine the pricing strategy. In this case, the pricing strategy takes place. In order to achieve the economy pricing, the organization should initiate the cost-plus pricing. The organization intends to use the fair pricing strategy where the organization can consider the costs and the consumers.
Pricing Strategy Supports Branding Strategy
Branding and pricing is should be designed in line with the targeted market segment. Regardless of the targeted segment (males, females, children or older consumers), majority of the consumers are conscious of the price. The consumers have prices that they consider fair in relation to the product in question. Furthermore, different consumers have different perceptions of the fair price. For example, the male customers fair price is likely higher than the females fair price in most cases (Vrechopoulos & Kopanakis, 2010). Using economy pricing in order to establish the fair price should be done in regard to the product in question. Fair prices attract the low and the high end market, whether the consumer is an adult, teenager or child. From another level, fair pricing allows regional adaptation (Vrechopoulos & Kopanakis, 2010). For example, a brand associated with the females in Mexico may not sell at the same price as the same product in the United States or Britain. This pricing strategy allows the organization to fair-price the brand in relation to the targeted consumers of the region. In some scenario, the fair price of women in Mexico may not be the fair price of women in the United States interested in the same product.
In most scenarios, organizations prefer to use the manufacturer-wholesaler-retailer chain of distribution. Although this chain has its advantages, its main and influential disadvantage is that it affects pricing to the negative side. The manufacturer sells the product to the wholesaler at a given price. The wholesaler sells to the retailer at a higher price. The retailer sells to the consumer at a higher price. This long chain of distribution incurs extra costs which have an impact on the consumer price. In order to eliminate this challenge, the organization can eliminate the wholesaler who is between the retailer and the manufacturer. The organization can sell the products directly to the retailer who will sell them to the consumer. One way of achieving this is by initiating technology in the business in the form of E-commerce. Business-to-business or business-to-consumer E-commerce can take care of this challenge (Grewal & Levy, 2010). This way, the organization will be able to sell the products directly to the retailers (business-to-business) or to the consumers (business-to-consumer).
Areas that are still developing may not have the complete coverage of Internet. In such areas, the organization can set depots where the retailers can buy the products directly. The depots should act on behalf of the organization, thus, there should be no prices added to the prices retrieved from the manufacturing plant. Eliminating these long distribution chains will also limit the chances of consumers selling counterfeit goods (Beamish & CIM, 2006). If the retailers go directly to the manufacturers to buy the product, then the consumers will buy original products. Better still, if the consumers can buy the products directly from the manufacturers, then they have excellent chances of buying the original products.
Push or Pull Strategy
The push and pull strategy is highly applicable in this case. The push strategy initiates ways of pushing products towards the customers. The pull strategy engages means of making the consumers pull the products. Since the targeted consumers will not be automatically attracted to the product, the organization will need to establish pushing the products to the consumers. The organization should also engage ways of influencing the consumers into pulling the products. Ways of pushing the products include trade show promotions, direct selling, retailer negotiations, efficient supply of products through effective supply chains, point of sale amongst other means. Pull techniques will include advertising, word of mouth, customer relationship and sales promotions (Ballard, 2011).
Distribution Strategy and the Products
The distribution strategy fits the products and the targeted market in diverse ways. With the evolving and developing technology, organizations are trying to make all activities done as efficiently as possible. In this case, eliminating the wholesalers in the chain will fit the products and targeted consumers. It will limit the chances of buying or selling counterfeit products as explained earlier. Additionally, it will allow the use of technology (Internet) which is becoming an essential part of the majority of the consumers globally.