PRICING STRATEGY

The suitable price for the product is RM89. The pricing strategy that we apply is
penetration pricing. We set a lower price to increase our sales and market share as
it’s a new brand and product. We set a lower price to attract customers to buy our
product at the beginning stage. The lower price helps the new product to penetrate
the market and attract more customers from our competitors. More than that, as
our sales gain high we get to make our market shares high too. This makes many
people buy our share at the start of the new brand. This strategy helps us to
increase our sales firstly than the increase on profits. Later, after our brand has
reached many customers and created the desired customer base, the price of our
product may be raised. So we could work out in increasing the profits. This helps
us to increase customer interest, reduce our competition with other competitors
and We will earn brand loyalty which keeps our customers around us when the
prices increase.