BUSINESS PLAN

Module 4 discussion

Week 1

Lead logistics is also called a 4th party logistic provider, which directs every aspect of the supply chain, including managing other logistics providers. The company is also tasked with transportation management, supervising warehouse operation, and operating any other supply portion. Lead logistics operate within local communities serving the community members' inherent needs.     Pricing objectives are the goals that guide the business in setting the cost or pricing of the product or service to the company's current and potential customers. In other words, the pricing objectives underpin the product pricing process and should reflect the company's financial, marketing, product, and strategic goals (McCormick, 2017). It should also integrate the aspect of consumer price expectations. For example, Lead Logistic pricing objective includes maximizing profits, increasing its sales volume, deterring market competition, and most importantly, matching the level of market competition. Each of these pricing objectives requires different pricing strategies that must be aligned with the goals and objectives of the company. Moreover, there must also be a firm understanding of Leads service attributes and the overall market (McCormick, 2017).     Based on the current pricing objectives, the goals are to increase its market share by fostering market penetration to help attract the maximum number of customers. The company will adopt a low product pricing strategy slightly below the current market price to achieve these pricing objectives. This will help the company win price-sensitive clients. In addition, by bringing down the product unit cost, the company will penetrate the current market and even create barriers to entry by other logistic companies (Smith, 2011). However, the company must be ready to absorb the risks because the penetration strategy is precarious from a profitability standpoint. Once the company has established a sustainable market share, it will be easier to increase prices in the future.

References:

McCormick, M. (2017). Why pricing objectives are fundamental to business success. Blackcurve. Retrieved from https://blog.blackcurve.com/why-pricing- objectives-are-fundamental. Smith, T. (2011). Pricing strategy: setting price levels, managing price discounts and establishing price structures. Journal of Revenue and Pricing Management, 12(5), 470- 471. Retrieved from https://search-proquest- com.ezproxy.trident.edu/docview/1429807830/fulltextPDF/EF3141197F9F46A4PQ/1? accountid=28844

Week 2

Lead Logistics is also known as a fourth-party supplier that directs every element of the supply chain, including the management of other logistics providers. This company is also responsible for transport management, the supervision of the warehouse operations. Lead Logistics will operate in local communities for both small- and large-scale businesses, which meet the intrinsic demands of the community members.

Product perception is not always based on reality, and the rationality of the perceived value is therefore not necessary. However, the company increases the perceived worth of its client by considering the perceived value of the consumer. To satisfy the consumer's perspective by supplying the customer with just the perceived value is the goal. Lead Logistics provides the true perceived quality of the local service, which meets consumers' desires and demands. The company knows that the most significant error the company can make is that it encourages misperception of the consumer to persuade the client to assume that the company is quality-perceived (Rodrigues, 2017). It might be frustrating for customers if the firm cannot live up to their expectations.

Indeed, psychological variables affect the behavior of customers. A client's behavior is greatly influenced by factors including motivation, perception, learning, attitude, personality, and lifestyle. Consumer behavior is essentially a psychological phenomenon that may alter its surroundings with the slightest modification (Bogueva et al., 2018). Based on how the product is presented to the consumer, the behavior may change by shifting the loyalty or being inspired to see a specific product as excellent. The psychological reasons impact a product's perception and make it think that the product offered has the perceived value that the consumer deems advantageous and gratifying.

The emotional advantages of a product endorser are shaped in that the way the product is presented to the customer may affect consumer behavior to see the product as fulfilling or discrediting the product as bad (Hu et al., 2009). In this situation, the endorser of the product must be able to give a picture of the emotional advantages of the product to the customer with the most pleasing components of the product.

References

Bogueva, D., Marinova, D., & Raphaely, T. (2018).Handbook of research on social marketing and its influence on animal origin food product consumption. IGI Global. Retrieved fromhttps://bit.ly/2Onj5vQ

Hu, H. H., Kandampully, J., & Juwaheer, T. (2009). Relationships and impacts of service quality, perceived value, customer satisfaction, and image: an empirical study.The Service Industries Journal,29(2), 111-125. Retrieved https://www.tandfonline.com/doi/abs/10.1080/02642060802292932