b) Kellog’s pricing strategy

Pricing is based on research and market conditions. Kellogg’s regularly uses programs such as
discounts and other schemes such as coupons which can be redeemed for free products.
Kellogg’s keeps prices flexible to compete with other player and depending on sales growth.
However, given their market leadership, the pricing strategy in the marketing mix of Kellogg's is
often dominated by their own brands. As a part of its CSR initiative during the pandemic, the
company donated cereals worth more than $10 million for fighting hunger globally.
Tesco pricing strategy can be described as cost leadership. The pricing strategy is developed
according to its business strategy and the pricing strategy contributes to its competitive
advantage. Specifically, Tesco pricing strategy is based on its marketing message of ‘Every
Little Helps’. Tesco management aims to reduce the cost of purchase and operational costs
through economies of scale and a set of other measures in order to pass the cost advantage
to customer as the main brand value. The company also uses economy pricing,
psychological pricing, product line pricing and geographic pricing strategies…