week 4 db 2

WK 4 DB 2

Prior to beginning work on this assignment, read Chapter 11: Pricing Decisions.

The pricing strategy for a product may vary from country to country; a product may be positioned as a low-priced, mass-marketed product in one country and a premium-priced niche market in others.

In your initial post, address the following:

· Select two similar brands that offer at least one line of similar products.

· Airbnb and VBRO

· Then select two different countries; preferably a country aligned to the region you are working on from Week 2, and then a second country besides the one selected in Week 2.

· For instance, Argentina and Germany. This is just an example, get creative!

· Compare the various pricing strategies each company uses to compete in each country.

Your initial discussion post should be 250 words. Cite your textbook and any other sources used to support your ideas. You may refer to University of Arizona Global Campus Writing Center’s  APA StyleLinks to an external site.  resource for assistance.

Guided Response: Review several of your peers’ posts. Respond to at least two of your fellow students’ posts in a substantive manner. Each peer response should have a minimum of 100 words. In your response, suggest a pricing strategy they may not have considered, and provide a credible online article source to support your position.

Peer Responses

Parrish Spisz

Dunkin' and Starbucks compete for coffee drinkers in Mexico and Poland. Because coffee is a relatively inexpensive commodity, both companies position their pricing strategy by the law of one price (Green and Keegan).

My personal experience at Starbucks in Puerto Vallarta, Mexico is that a grande-sized drip coffee costs slightly more as in the United States. Dunkin' is priced slightly lower in Mexico than in the United States. Each coffee product in Poland is similarly priced. Why?

Starbucks follows a premium pricing strategy while Dunkin' follows an affordable pricing strategy. Their respective pricing strategies reflect their brand positions. They evaluate the market segment variables of demographics, psychographics, and behaviors to determine if their products will be successful. Going into Mexico and Poland, both Starbucks and Dunkin' factored into their pricing that their products would be well-received by their target consumers. Starbucks consumers aren't as price sensitive as Dunkin' consumers. This understanding is learned from the market segmentation analysis. It underscores the value this analysis has on a company's pricing strategy. Export and import costs remain significant variables in a pricing strategy. For Starbucks the price ceiling will influence how much of a premium they can charge. This is not price skimming. It still follows the law of one price. Dunkin' is more vulnerable with their affordable pricing strategy because any necessary price increases due to commodity costs could result in their consumers not purchasing coffee as often or not at all.

Both companies are challenged by commodity inflation and currency fluctuations in the global markets (Green and Keegan, 2020). Despite the pricing pressures both companies continue to operate in Mexico and Poland. 

Green, M. C., & Keegan, W. J. (2020).  Global marketing (10th ed.) . Pearson.

Stacey Barnes

Good afternoon class,

I have chosen two comparable brands, Samsung and Xiaomi. Both companies are recognized for manufacturing smartphones in the two selected countries, Nigeria and Japan. Competing for a target audience with the utilization of price targeting.  Samsung and Xiaomi sell their smartphones in Nigeria and Japan, each company successfully establishing its own market in the respective countries. Samsung has implemented a competitive pricing approach for its smartphones in Nigeria in order to maintain a competitive advantage. The company has utilized both price skimming and competitive pricing strategies. Samsung has also implemented a price skimming strategy for its smartphones in Japan. During periods of high demand, Samsung adjusts its pricing to maximize revenue. "When  Samsung releases a new  smartphone with cutting-edge technology, the corporation employs the  price- skimming tactic"(Shastri, IIDE.co).

Xiaomi's pricing strategy in Nigeria is founded on the principles of value innovation as it the company understand the climate of the economy in the country. Attempting to disturb the cellular environment with the idea of lower price point to attach the consumer into doing business with the brand. This aims to offer technology at a price rate that  other brands cannot or refuse to do  in the Nigerian market, particularly Samsung. By implementing a penetrative pricing strategy, Xiaomi has successfully targeted the premium smartphone segment in Japan while maintaining competitive pricing compared to Apple. This approach has also been applied in Japan to drive sales. "Xiaomi is bringing its low-cost, high-performance smartphones and an array of connected devices to the Apple-dominated Japanese market, part of an effort to bolster its business abroad as it stumbles in its home market of China"(Asia, kr-asia.com)

References

Shastri, A. (2023, March 15).  Decoding Samsung’s Marketing Strategy: Success in the Tech Industry. IIDE the Digital School. Retrieved July 22, 2024, from  https://iide.co/case-studies/marketing-strategy-of-samsung/Links to an external site.

Asia, N. (2019, December 10).  Xiaomi seeks fans in Japan with budget-friendly phones | KrASIA. KrASIA. https://kr-asia.com/xiaomi-seeks-fans-in-japan-with-budget-friendly-phones