Emmi

eD.Cast
il
lo

BAOM301

11Act
ivi
ty1

1.Whatt
ypeofpr
icest
rat
egy
/posi
ti
oni
ngi
sbei
ngempl
oyedbyHondabasedoncase
st
udy?

Int hi
sscenar i
o,givent hatt
heHondacompanyi sapr emi um manuf acturer,t
heyshow
theircapabili
tytoadj usttothesi t
uat i
ont heyar efacingi nt hesaidscenar ioinVietnam
wher ei
nChi nesecompani est akeovert hemot orcyclesalesbyi ntroducingamot orcycl
e
withabudgetf ri
endl ypr i
cet hatmostoft hepeoplei nVi etnam canaf f
ord.WhatHonda
companydi disinst eadofl ower i
ngt hepr iceoftheirexistingproduct s.Theycomeup
withanewpr oductt hathasal owpr icebutst i
ll
withahi ghqual i
ty,asbei ngsaidinthe
study“ TheHondaWav ehasachi evedl owpr i
ce.Yethighqual it
yanddependabi li
ty,
throughusi ngcost -reducedl ocall
ymadepar t
saswel laspar t
sobt ainedthrough
Honda’ sglobalpur chasi ngnet work.”So, throught hatadj ustment ,
byappl y
ingthelow-
pricestrategy,whichi sthe“Theyguar ant eeconsistentqual i
ty”
,theHondacompany
gainedt heVietnamesemot orcyclemar ketagain.

2.Whatis/
arethefact
or/
sthatcont
ri
but
e/st
othesuccessoft
hecompanyusi
ngi
tspr
ice
posi
ti
oningstr
ategy
?

TheHondacompany ’shigh-pri
cest r
ategyf act
orincludes,super i
orvaluei samust ,the
price-
v aluer el
ati
onship,innovati
onst hefoundation,andconsi stentandhi ghqual i
tyisa
must .First
ist hesuper i
orvalueismust ,
theHondacompanyal waysmakesur ethatt heir
mot orcycl eshaveahi ghv al
uet onotdi sappointthecustomer sexpect ati
on.Secondi s
thepr i
ce- valuethatithas.Thirdisinnov at
ionisthef oundati
on, innovatingt hestyl
e,the
frame, thef uncti
onsoft heirmot orcycleareoneoft hespeci alti
esoft heHonda
company .Andlastist heconsistentandhi ghqual i
tyisamust ,Hondacompanyal way s
makesur ethattheircustomer salway sgett heservi
ceandpr oductthatt heyar e
expect i
ng.

3. Howcant
hecompanyachi
evesuccessbyusi
ngadi
ff
erentpr
iceposi
ti
oni
ngst
rat
egy
?

Thecompanymustbecar
eful
giv
enst
atement
sandpr
omi
sest
othemar
ketand
customersaboutmakingfeatur
esandbenefi
tsthattheproductorthecompanydoes
notalwaysdeli
ver
.Avoidtoconfusepeopl
eonwhaty ourproducthasanddonothave.
Prici
ngisfundament
altoabusiness'
ssuccess;
it'
salsodifficul
ttoestabl
ishi
naway
thatguarant
eesprof
it
abil
it
y.Companiesmustconstantlyreviewpri
cingtomaximi
ze
profi
tlev
elswhil
ekeepingdevel
opmentstrat
egi
esincheck.