Price

Netopia Internet Promo for as low as Php 20.00 per hour – 2009

In the year 2008, Netopia, an Internet café business, missed its 2008 turnaround
objective due to lower-than-expected sales in the first half due to increased consumer
prices. Due to this, Netopia launched an internet promo by lowering their price per hour
to Php 20.00. This campaign was to bring back the Netopia from the trend.
Typically, the company's owner conducted some study prior to beginning the
campaign, as lowering your pricing implies that your service or product is of poor
quality. According to my opinion, they applied matrices to evaluate the potential of this
project, and they used the PESTLE Analysis. The price-cutting campaign would have
been influenced by external factors, mainly sociological, because of their customers.
and technological, because of the new technologies that were going to emerge. Another
matrix that they may have utilized, in my opinion, is Porter's 5 Forces, specifically the
threat of substitute, because of the other firms provide similar services or products.
Netopia was introduced this in all of their branches in February 2009, and they are
hoping that this one of their campaigns that year will help them reclaim their position in
the business.
If I were the company's decision-making manager, I would do what the managers
did to improve their services because adding a promotion to an existing service can re-
engage to all of your current consumers while also attracting new ones. Also, the
company's decision to continue to meet all of their customers' needs is commendable.
Second, the promotion is available to all of their locations, which means there's a
potential the corporation will re-enter the industry.

Reference:
Netopia Internet Promo. (2009, February 15). YouTube. https://www.youtube.com/watch?

v=SZolM1mazYI