Marketing 3000 Essay Example | Topics and Well Written Essays - 500 words

Marketing 3000 - Essay Example I have observed that generally, consumers are very price sensitive, especially during times of financial and economic crises. The most effective strategy that works to generate sales, repeated product purchase, and gain consistent patronage is if organizations implement a low price, yet high quality strategy. For basic necessities of homogeneous products (like soap, detergents, bread, coffee, milk, eggs), consumers with low purchasing power would opt to select those with the lowest costs. In supermarkets, therefore, organizations that aim to generate more volume in terms of revenues apply the least cost strategy. For example, the single-served coffee is gaining popularity in contemporary times. This market has been dominated by Nescafe where a 12-pack Taster’s Choice House Blend Instant Coffee costs $12.16. To enable to enter this market, Starbucks, which is known for its specialty coffee, previously served only in its respective coffee stores, have launched their single served Via in 12-pack pouches runs $9.95. When I learned of this move, of course, as a customer who perceived Starbucks as a projecting an image of high-priced, high quality coffee, definitely purchased Via, which as even lower in price than Nescafe’s Taster’s Choice. In another experience, the Cola wars between Coke and Pepsi had also undergone some price wars in the past. I remember being a Coke enthusiast ever since I can remember being allowed to drink carbonated drinks. Pegged almost at the same price, Coke and Pepsi have decided not to implement any price war because the strategy would be detrimental to both. However, there was a time when Pepsi came up with a new promotional strategy that enticed consumers to win cash prices by collecting specially printed Pepsi crowns. This promotion led to shifts in consumers’ purchases from Coke to Pepsi, despite the same price due to the offer of hopes to possibly win something big. When things like