MKT-201

Principles of Marketing

Assignment-03

Submitted to:
Mohammad Mohibur Rahman

Submitted by:
Group C

Student Name Student Id Contribution If contributed Involvement

(Whole Report/ in partial (High/ Medium/
Partial report) report, then Low)
which part?
Maisha Amrin 23104002 Partial Q1 High
Kayes Eron
Sidratul 23204260 Partial Q1 High
Muntaha
Hossain
Rukunul Jannat 23204222 Partial Q2 High
Kasfia Nusrat 23204045 Partial Q3 High
Khan Purna
Rahib Asadd 22204047 Partial Q3 High
In the ever-changing market of today, pricing strategies are essential for influencing customer
behavior and competitiveness. When examining the pricing tactics of our brand “Walton: Fresco
Refrigerator” and its prominent competitors like LG, Samsung, and Jamuna's Refrigerators, it is
critical to look at the underlying variables that influence consumer choices and market
positioning in addition to the pricing dynamics.

Comparison of Pricing Strategies Followed by

“Walton: Fresco Refrigerator” and Its Competitors:

“Walton: Fresco” is excellent at providing refrigerators at a reasonable price without sacrificing

quality. Walton Fresco's inexpensive pricing strategy connects strongly with cost-conscious
consumers, enabling the brand to grab a substantial market share in places where affordability is
key. In contrast, LG and Samsung fetch premium rates for their advanced features and brand
prestige.

Our brand Walton-Fresco can enter a variety of market sectors, such as emerging markets and
lower-income households, because of its dedication to provide value-driven items at reasonable
prices. Walton Fresco has a competitive advantage over its competitors because of its wide
market reach, allowing it to efficiently serve a wider population without turning away potential
customers due to excessive pricing barriers.

Because it offers dependable items with strong customer service and support, Walton Fresco
manages to retain a great brand reputation and customer loyalty despite its competitive pricing.
LG and Samsung can command higher prices due to their well-known brands and technological
advancements. Still, Walton Fresco cultivates long-term connections with customers by
emphasizing affordability, durability, and customer satisfaction. This approach fosters trust and
loyalty.
Walton Fresco's ability to deliver refrigerators at reasonable prices sets the brand up for future
growth and expansion prospects in the industry, particularly in emerging nations where
consumers are more sensitive to pricing. Walton Fresco may further solidify its position as a
dominant player in the refrigerator market by utilizing its economical manufacturing procedures
and distribution networks, surpassing rivals in terms of sales volume and market penetration.

If Jamuna's Refrigerators is positioned as a premium brand, it may target specialized market

segments that are prepared to pay higher rates for exclusive brand exclusivity, greater quality,
and attractive design. Conversely, Walton Fresco's extensive network guarantees availability and
accessibility in various locations at the same price.

When it comes to affordability, market penetration, consumer perception, and growth potential,
Walton Fresco Refrigerators performs better than its rivals. Targeting middle-class to upper-class
consumers looking for high-quality refrigeration solutions at reasonable prices, Walton Fresco
presents itself as a dependable and cost-effective brand by building on its advantages and being
committed to providing value to customers.
While others might take a different route, concentrating on the luxury or low-cost markets.
Furthermore, “Walton: Fresco's” strategic pricing demonstrates its dedication to provide value
for money.

Different types of markets can have a significant impact on pricing decisions. That's it:

Perfect competition: In a perfectly competitive market, there are many buyers and sellers and
the products are homogeneous. In such a market, prices are determined solely by the forces of
supply and demand. As a seller, you have little control over pricing because your products are
the same as your competitors. You may need to price your product according to the market
equilibrium price to remain competitive.

Monopoly: In a monopoly, only one seller controls the entire market. In this case, the seller has
significant pricing power. They can set prices higher than the competitive market because there
are no close substitutes. However, there may be regulations or public controls in place to
prevent excessive pricing.
 New Product Pricing Strategy

Among the two new product pricing strategies, market-skimming pricing and market-penetration
pricing, we are choosing the market-skimming strategy for our product “Walton: Fresco
Refrigerator”.

Market-skimming pricing strategy is a strategy where marketers initially set a high price for a
new product to skim maximum revenues layer by layer from the market. It starts by charging
high charges from customers who are willing to pay the initial cost to be the first to own the
product, but later marketers gradually lower the price to draw customers who are willing to pay
less.

The reason why we will follow the market skimming pricing strategy is because our product
“Walton: Fresco Refrigerator '' meets the specific conditions that’s required for it, which satisfies
both the needs of quality conscious individuals and price conscious individuals.
First and foremost, our brand-new refrigerator has all the necessary and new technology which
supports the product quality and image for its higher price, which will make enough buyers want
the product.
Second, because our product is more expensive than its competitors', it will be more difficult for
them to enter the market and provide a lower price to win over customers. Furthermore, by
reducing expenses, our rivals will be unable to provide the right product to meet the
expectations of their clients.
Finally, due to our sufficiently strong brand image, consumers who are concerned about cost
will wait for reasonable price reductions rather than purchasing rival goods.
 Pricing Strategies followed by Walton
A pricing adjustment strategy involves making changes to the pricing of products or services to
adapt to market conditions, customer preferences, or business goals, employing tactics like
discounts, dynamic pricing, bundling, and more. As for our brand, the followed strategies are
certainly:

Discount and Allowance Pricing:

At Walton, we believe in making shopping a rewarding experience for our customers. That's why
we offer a range of incentives to sweeten the deal. From enticing cash discounts for timely
payments on installment purchases to special quantity discounts for those seeking bundled deals,
we ensure that every purchase feels like a win-win. Our seasonal discounts, particularly on
winter essentials like air conditioners, provide added value when it matters most. Moreover, our
renowned trade-in allowance program allows customers to effortlessly upgrade to new products
by trading in their old ones. And let's not forget our irresistible cashback offers, which serve as a
delightful cherry on top, making every purchase a rewarding experience under the promotional
allowance.

Segmented Pricing:
At the heart of our pricing strategy lies a commitment to offering tailored solutions for every
need and budget. Just like any reputable electronic manufacturer, we employ a product form
pricing strategy, offering our range of TVs, phones, and laptops of different versions at different
price points. For instance, while our cutting-edge NEXG N9 (2024) commands a premium price
of 17,999 BDT, our reliable Primo EF10 (2022) remains accessible at just 6,300 BDT. This tiered
approach ensures that customers can find the perfect fit without compromising on quality or
affordability.
Psychological Pricing:
At Walton, we understand the power of perception when it comes to pricing. That's why we
meticulously craft our pricing layouts to resonate with our customers' minds, instilling
confidence and trust in every purchase decision. Whether it's through strategic pricing
positioning or subtle pricing cues, we ensure that each interaction leaves a lasting impression,
reinforcing the inherent value of our offerings.

Promotional Pricing:
In today's dynamic market landscape, timing is everything. That's why our promotional pricing
strategy is designed to seize opportunities and capture attention when it matters most. Whether
it's to offset seasonal fluctuations or capitalize on off-peak demand, our promotional pricing
initiatives are crafted to turn heads and drive sales. By offering compelling discounts and
incentives, we not only attract new customers but also foster long-term loyalty, ensuring
sustained success in any market condition.

Geographical Pricing:
This method adjusts pricing depending on consumer geography or local market circumstances.
We use several price tiers for locations with varied demand, competition, or costs. They may
charge more in wealthy locations where clients are prepared to pay more and discount or cut
rates in low-cost or competitive places.
Dynamic and Personalized Pricing:
Demand, time of day, shopping history, and consumer demographics determine pricing. We
establish real-time pricing using data analytics and algorithms to maximize income. It may
provide clients tailored discounts or promotions based on their prior purchases or dynamically
modify pricing to match competitors or profit on high demand.

International Pricing:
At Walton we price overseas markets differently according to local economic situations,
purchasing power parity, currency rates, and competition. Market research and analysis may
identify the best price plan for each market, taking into account local pricing conventions, tariffs,
taxes, and shipping costs. Price localization techniques might also help them compete and attract
clients in each worldwide market while accounting for currency swings and geopolitical threats.

In the end, our brand's price adjustment tactics are carefully designed to respond to market
fluctuations, satisfy consumers, and meet company goals. We make smart, customer-centric price
decisions using discounts, dynamic pricing, bundling, and more. As we adapt and innovate, we
will continue to provide value-driven solutions that improve our consumers' shopping
experiences and promote our brand. With these tactics, we may overcome market hurdles and
become an industry leader.