1st Answer

Most products are part of a broader product mix. Within the product mix, which may
consist of a large range of different products aiming at a different positioning, they
play a specific role. Consequently, they should be priced accordingly. Product Mix
Pricing Strategies address this issue. We will explain the basic strategies for setting
product prices within the product mix, both for individual products and whole ranges
of products in the product mix.
In short, product prices should always be set considering the whole product mix. The
reason is that the company should always look for a set of prices that will maximize
profits of the total product mix, instead of profits on only one individual product. If the
company sets prices for one product only without considering other products in the
product mix, it may face a problem: If the product is not priced at exactly the right
spot by coincidence, its profit will not be maximized. Even worse, it may hurt the
sales of other products in the product mix.

Product Line Pricing

Since firms usually develop product lines rather than single products, product line
pricing plays a decisive role in product mix pricing strategies. For example, when you
look at a car brand, you will see a relation between the different series and their
prices. The entry model obviously costs you less than the top-range car.

These price points are carefully determined. In product line pricing, the firm must
determine the price steps between various products in a product line based on cost
differences between the products, competitors’ prices, and, most importantly,
customer perceptions of the value of different features.

Optional Product Pricing

Optional product pricing is the pricing of optional or accessory products along with a
main product. In many cases, you can buy optional or accessory products along with
the main product.

Captive Product Pricing

We speak of captive product pricing when companies make products that must be
used along with the main product. On the contrary, in optional product pricing, we
should think of products that can be bought/ sold with the main product.
Examples for captive product pricing are razor blade cartridges and printer
cartridges. Captive product pricing is an extremely powerful strategy in the set of
product mix pricing strategies. Producers of the main products, e.g. printers and
razors, often price them very low and set high mark-ups on the supplies you need in
order to operate the main products.

However, companies that use this type of product mix pricing must be very careful.
The difficulty is in finding the right balance between the main product and captive
product prices. Also, consumers trapped into buying expensive captive products
could resent the brand that ensnared them.

By-Product Pricing
By-product pricing refers to setting a price for by-products to make the main
product’s price more competitive. It is the result of the fact that producing products
and services often generates by-products. Often, these by-products (as singly sold
products) would not have any value and getting rid of them is costly. This would then
increase the price of the main product. But by using by-product pricing, the company
tries to find a market for these by-products to help offset the costs of disposing of
them and make the price of the main product more competitive.

In some cases, the by-products themselves can even turn out to be profitable – that
is actually turning trash into cash. Sly, isn’t it?

Price is a strong element of marketing strategy of any company.  Price has direct
impact on the customer, customer buying behaviour, business and on the overall
economy. To customers the price is a major indicator of good quality product and
also important factor in making decision about its purchase. Price strategy is
therefore, most vital and critical area of marketing strategy. In deciding the price the
business management and marketer must consider, the kind of competition in the
market, elasticity of demand of that particular product and the cost of production.

Discount and Allowance Pricing

Most companies adjust their basic price for rewarding their customers due to
customer quick responses. Such as early payment of bills by customers, bulk
purchases, and off-season buying etc, so in these cases companies offer certain
amount of discount or allowance to their customers. Such price adjustments called
discounts and allowances pricing strategies. Discount is a straight reduction in price
by company on purchase while allowance is promotional money paid by company to
retailer in respect of an agreement to feature the company’s product in some way.

Segmented Pricing
In segmented pricing strategy, the company sells a product or service at two or more
prices, and difference in prices not based on cost. There are several forms of
segmented pricing like under customer-segment pricing, under product-form pricing
and more. Museums are sample example of this as they charge a lower admission
from students and senior citizens. Variation of theater or cinema seat prices is also
an example of segmented pricing. Companies also charge different prices in different
region for same products.

Psychological Pricing
Psychological pricing strategy approach considers the psychology of different
customers in respect of their products. Price actually says something about
the product features and characteristics. For example, many customers use price
to judge the quality of the product and services. For example a person wants to
purchase perfume, he asks the price from shopkeeper and he told different prices of
two bottles as 1000 for one and 400 for other. Now customer will be willing to pay
1000 because this higher price indicates something special.

Promotional pricing
Promotional pricing strategy promote or introduce a particular product or service.
This is the temporary price companies charged for their products or services and this
price may be below then list price and sometimes even below then incurred cost.
Some supermarkets and departmental stores offer lower prices to attract customers.
Promotional pricing may also have adverse effects for example constantly reduced
prices can deliver a message to customer about lower brand’s quality in the mind of
customers.

Conclusion: So, it can be concluded that the brand needs to use product line pricing
and promotional pricing adjustment strategy to market its products and services in
the FMCG industry.
2nd Answer

Product is one of the most important components of the Herbalife Nutrition Ltd
Marketing mix. The distinctive characteristics of the product by Herbalife Nutrition Ltd
are:

2.1.1. Quality

 Herbalife Nutrition Ltd maintains the high quality of products

 High product quality is maintained by adding value during different stages of
the value chain
 Herbalife Nutrition Ltd procures raw materials from reliable and trusted
suppliers only
 These raw materials are processed under carefully maintained environments
to maintain high and consistent quality of the products
 High quality promise and delivery also provides Herbalife Nutrition Ltd with a
distinctive competitive advantage

2.2. Price

Herbalife Nutrition Ltd marketing mix focuses on a hybrid strategy for pricing to
obtain maximum value for its products. The marketing mix Herbalife Nutrition Ltd
uses a combination of a number of techniques for pricing its products, which are
detailed below:

2.2.1. Premium pricing

 By using premium pricing for some of its product ranges, Herbalife Nutrition
Ltd encourages favorable brand and product perceptions in target consumer
groups
 Premium pricing for products also encourages a favorable quality perception
of Herbalife Nutrition Ltd products amongst consumers
 With premium prices, Herbalife Nutrition Ltd has successfully also made some
of its product ranges exclusive by restricting sales and production. This, in
turn, leads to a perception g luxury in consumption products
 Premium prices add a touch of privilege and high value in Herbalife Nutrition
Ltd products
 Using elements of premium prices in other product ranges has also allowed
Herbalife Nutrition Ltd to maintain significantly high profits and a consistent
business growth

The marketing strategy for Herbalife Nutrition Ltd also places high importance on the
promotional tactics and strategies used. The promotional strategies allow the
Herbalife Nutrition Ltd to interact with the consumers and influence them directly.
Herbalife Nutrition Ltd uses a 360-degree approach in its promotional activities, and
makes use of the following means of promotion:
2.4.1. Digital marketing

 Herbalife Nutrition Ltd has corporate profiles on all social media websites and
portals
 Herbalife Nutrition Ltd uses its social media presence to directly, engage with
consumers
 This direct engagement and interaction allows Herbalife Nutrition Ltd to
understand the customers, their needs and demands
 Herbalife Nutrition Ltd uses this feedback and incorporates it in its broader
marketing and organizational strategy
 Herbalife Nutrition Ltd also maintains a corporate website – which highlights
company information, product information as well as information regarding
any ongoing campaigns and sales

2.4.2. Reward Programs

 Herbalife Nutrition Ltd has a loyalty card program for its customers
 The loyalty card allows customers to redeem points in exchange for products
or other exciting gifts, as directed by the company
 Each purchase is entered into the loyalty card by Herbalife Nutrition Ltd and is
valued for points against the products’ monetary value
 The loyalty card can be purchased or is given complementary by Herbalife
Nutrition Ltd on high valued purchases
 Frequent usage and purchase of products by Herbalife Nutrition Ltd also has
rewards against the loyalty card

2.4.3. Community Influencers

 Herbalife Nutrition Ltd makes use of community influencers as its on-ground

promotional efforts
 Herbalife Nutrition Ltd identifies strong and confident individuals to be brand
ambassadors in their communities
 Herbalife Nutrition Ltd provides these brand ambassadors and community
influencers with its product range and invites them to use it themselves to see
benefits

2.4.4. Conventional marketing

 The company places advertisements in consumer-related magazines. This

largely includes home decor, and home management magazines
 Magazine ads are not very frequent, but appear twice every quarter of the
fiscal year
 In high-density locations, Herbalife Nutrition Ltd also makes use of out of
house hoardings
 Hoardings increase visibility for Herbalife Nutrition Ltd and also work towards
building stronger brand recall
 Herbalife Nutrition Ltd also produces TV advertisements
 All TV advertisements have an emotional appeal to them
 TV advertisements by Herbalife Nutrition Ltd have progressed to include a
slice of life elements and characteristics
  TV advertisements by Herbalife Nutrition Ltd also highlight the functional
benefits of the product

3) Direct marketing

While advertising targets a mass-audience, direct marketing targets prospects and

customers. Social media marketing, Email marketing, Internet marketing are all types
of direct marketing used by companies. They have become important in the
promotional mix lately because people are using internet far more than they used to
a decade back. Company’s employ direct marketing in order to engage in one-way
communication with its customers, about product announcements, special
promotions, order confirmations as well as customer inquiries.

4) Sales & Marketing promotions

Sales promotions are one of the most common types of promotion used by
companies. Their main purpose is to stimulate purchasing and sales. While it has the
potential of increasing sales, it is also beneficial for informing prospects about new
products on the market or just to recapture old or lost customers.  Such examples
include: coupons, product samples, etc.

Conclusion: In order to succeed with your promotional mix, it would be a good idea
to take a look at what your competitors are doing. This does not imply that you copy
them as it will not help you at all since each company has its own identity. Monitoring
their ads, promotions and special events might provide you with a guide of how to
promote yourself and differentiate yourself through the promotional mix.
3rd Answer

3a.
The consumer decision process refers to the decision-making stages that a
consumer undergoes before, during, and after buying a product or service. We also
know it as the buyer decision process, buyer’s journey, buying cycle, buyer funnel,
consumer purchase decision, and buyer’s decision process.
In the other words, there are various causes of problem recognition of products could
be happened, for instance, dissatisfaction, out of stock, and new needs or wants.

In terms of mobile phone, nowadays mobile phone is not only a device, but also a
sign of vogue. Some consumers recognize their mobile phone out of vogue as a
problem.

Consumers can have various reasons for them to perceive that their mobile phone
got problem need to be solved. As mentioned, those reasons could be rational or
irrational. For example, a new phone release, current mobile phone is not operating
well, not satisfied with current mobile phone, or just wants a new mobile.

Information search
Once consumers realize that current product is not as it should be, it means a
problem has been recognized, and then consumers will proceed to search great
information in order to resolve it. This process is called information search, if people
undertake this process by buying a product, it also can be called pre-purchase
search. Information search can be divided into two types: internal and external
search. Internal search is consumers search information from their own memory,
because consumers may already have some limited knowledge of product which
they intend to buy, or they already have previous experience about similar product.
External search is consumers obtain information from family, friend, and advertising
by companies.

In this process, consumers’ purchase intention is already quite strong, only the
brand’s choice still hesitating in their minds. Those brands could be broken down into
three types: Evoked set, Inert set and Inept set. Evoked set is defined as brands
which are in consumers mind with positive image, and Inert set is contrary to Evoke
set, it is defined as the brands are negative and already outside of consumers
choice. Inept set is defined as the brands have no characteristic, consumers perhaps
will not choice them.
In terms of mobile phone, if consumer is satisfied with the brand of their current
mobile phone, they may still look for another of the same brand’s new products, if
not, they will choose others. “Brand awareness is expressed as the power of the
brand’s existence in the consumers’ minds and it is an important part of the brand
equity.
Evaluative criteria appear on the step, some competing options are in consumers’
minds. For example, there are some secondary features between those particular
products. Consumers must choose some of those features; those features are called
determinant attributes.

In terms of mobile phone, similar characteristic phones sometimes come with

different secondary features, for example, two same price mobile phones; one
comes with higher quality camera, but the other one comes with nicer speakers.
Consumers generally will choose one of those determinant attributes as their
purchase decision, because of those products are already on their list.

Conclusion: So, it can be concluded that the populations of people who use mobile
phone today become enormous amount. Because of this big market, every company
should have competitive advantage more than any other mobile phone companies.
Therefore, it is better for a company to pay more attention on consumer behaviour of
decision making in terms of mobile phone.
3b.
Fintech marketing is a new marketing category that includes all tactics and tools
used by fintech organisations to drive demand, customer loyalty and business
growth.
Gamification is simply the process of applying gameplay principles and game design
elements in a non-game environment. So, how is that applied to marketing? There
several ways to do that, but the most popular are to:

 Hold contests and give prizes

 Reward points for referrals and completed purchases/transactions, for
example.
 Create quizzes, puzzles and visual games to make ‘boring’ content
more appealing and shareable

In fintech, gamification is mostly used in pre-launch campaigns to generate buzz,

awareness and new users.

Referral, affiliate, or influencer marketing all refer to the traditional marketing

principle of establishing partnerships with third-party ‘marketers’ or ‘influencers’ and
incentivising them to promote your products or services by offering them a
commission for each conversion they generate. Affiliates can be professional
marketers and media owners (i.e comparison sites) or industry bloggers and
influencers.

In fintech, affiliate programmes are a common growth tactic usually used at launch
as part of a go-to-market strategy and are one of the best ways to get quick and
direct access to your target market and earn consumers' trust.
That’s yet another marketing buzzword. Experiential or experience marketing is
connecting or engaging with your target audience in a physical way, by providing
them with some sort of a unique physical experience with your brand.

Experiential marketing is a very commonly used tactic in the consumer space, think
of a popular ice cream brand creating a pop-up workshop where you can create your
custom ice cream. But, we’ve also seen many services companies, in both tech and
finance industries, who’ve successfully applied it to generate buzz and boost sales.

Partnership marketing is the broader concept of collaboration marketing which

includes various tactical sub-categories like the earlier mentioned affiliations as well
as licensing, co-branding, sponsorships, product placements, joint ventures, content
sharing, etc. And it’s all about collaborating with a third party, a business, or a brand,
that is associated with a segment of a market you’re interested in selling to.

In fintech, partnership and joint-marketing tactics are often used by businesses at

their pre-launch stage to test the market and validate product concepts.

Creating a community is one of the most powerful ways to build loyalty and strong
emotional long-lasting relationships, as it taps into the most basic human needs of
having a sense of belonging and sharing.

Many successful fintech startups including Revolut, Monzo, 11:FS and Finimize have
taken advantage of that tactic and focused their efforts on building strong brand
communities that drive product development, client retention and growth, including
asking customers to suggest and name future products, provide feedback on existing
offerings, join open BETA groups and Live Q&A sessions and attend community
meet-ups.

Conclusion: The industry is already saturated by ‘tips and tricks’ and ‘five things you
need to know about’ type of content, so people are looking for more solid, in-depth
pieces of real-life examples and use cases of things that worked and things that
didn’t. Following this trend, the brand can be focused on producing targeted and
edgy editorials that have little to do with its technology, but more with its targeted
audience, and go way beyond just advice