M.Hassaan Khalid: Analysis On Skimming and Penetrating Pricing Strategy

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M.

HASSAAN KHALID
---------------------------------------------------------------------------------------------------------------------------
Assignment Principal of marketing
Sir Naveed Ahmad

Roll No= F-18-1280


Class = BSCS
Section = B
Semester= 4th
Subject = Principal of Marketing

QUESTION NO #1
Analysis:on Skimming and Penetrating Pricing
strategy
What is Skimming
Pricing skimming is product pricing strategy by which a firm charges the highest initial
price that customers will pay and then lowers it over time.
What is Penetration
Penetration pricing is a marketing strategy used by businesses to attract customers to
a new product or service by offering a lower price during its initial offering. The lower
price helps a new product or service penetrate the market and attract customers away
from competitors.

Definition of Pricing Strategies


An estimating technique is a game-plan intended to accomplish valuing goals. For the
most part evaluating procedures help advertisers to take care of the useful issues of
setting cost. These systems is normally utilizing in pakistani organizations
1) Pricing and advertising targets
2) The business sectors for its items
3) The level of item separation
4) The item's life cycle stage
Price Skimming Strategy
Value skimming is the system of charging the most noteworthy conceivable cost for an
item during the presentation phase of its life-cycle. The dealer basically "skims the
cream" off the market, which assists with recouping the significant expenses of R&D
all the more rapidly. What's more, a skimming approach may hold down the interest
for the item, which is useful if the company's creation limit is constrained during the
presentation stage.
Price Penetration Strategy
At the contrary extraordinary, entrance valuing is the procedure of setting a low cost
for another item. The primary motivation behind setting a low value is to fabricate
piece of the overall industry for the item rapidly. The merchant trusts that the
structure of an enormous piece of the overall industry rapidly will dishearten
contenders from entering the market.
Strategy used by I-phone:
•• APPLE I-PHONE
SAMSUNG
• OPPO
APPLE I-PHONE►
 
INTRODUCTION
Apple Inc is an American worldwide association situated in 1 boundless circle,
Cupertino, California 95014, in the Silicon Valley. It is centered around planning and
creating PCs, other related programming items, and electronic items, for example,
MP3 players and iPods. Mac Inc's fundamental items are iMac, iPod, iPhone, and its
most recent propelled item is the iPad, which is very nearly making another upset
after the iPhone. Apple Inc was established in 1976 and from that point forward Apple
Inc has been driving the path in developing new items, in any case, it has experienced
various good and bad times from that point forward.
Skimming estimating system of I-Phone:
Apple has begun with the value skimming system after its mechanical discovery in
development with the cell phone advertise.
Apple utilized a value skimming system 3 years prior when iPhone 6 was propelled.
iPhone six hit the market with an exceptional cost and not many individuals could
manage the cost of it. iPhone 6 costs have bit by bit cut down with time. iPhone six
costs have generally tumbled to rival other android gadgets. Another case situation is
the dispatch of the iPhone X. They were sold at exceptionally prime costs in huge
amounts before the cost essentially dropped.
The initial cost at the iPhone's cost was $599 with space stockpiling of 4 GB and $699
for 8 GB stockpiling. In September 2007, Apple changed the value methodology by
bringing down the cost of the 8 GB model to $399 and selling 4 GB until stock is out.
Another cut in the cost came because of the AT&T sponsored equipment. The cost of 8
GB iPhone further diminished down to $199.
This was a skimming procedure utilized was Apple organization in great habits.
Favorable circumstances of Skimming Price Strategy:
Skimming estimating has the primary points of interest.
1) High transient benefits because of the uniqueness of the items.
2) Enhance their huge market to skim to go after the android carefully.
3) Customer ceaselessly purchase items
4) Stands showcase in the entire world and particularly in second or third world
nations because of this skimming methodology
Penetration pricing strategy of Apple I-Phone:
The decision or valuing procedure is especially significant for innovative items
since its life cycles are short. Separation can prompt beneficial accomplishment
for such items. The skimming evaluating methodology is valuable for separating
items. A skimming estimating technique implies charge high at first and
consequently brought down The method of reasoning of this system is to skim
excess in the item early life cycle. The underlying high selling cost can enable the
organization to take care of the improvement expense from the beginning period.
This empowers the organization to fortify their item advancement and
improvement.
Comment/opinion:
In my opion Apple i-phone both strategies are good in
their manners respectively .Skimming pricing strategy is better because Apple made
their brand and gain popularity in whole word also in pakistan,so I-phone user always
like I-phone's,so Skimming is like a opportunity for Apple user when price is laid
down,its better for Pakistan like country or other Under-developed countries.

SAMSUNG►
INTRODUCTION►
 Samsung Electronics Co., Ltd. is a South Korean global hardware organization
headquartered in Suwon, South Korea • Samsung has for quite some time been a
significant producer of electronic segments, for example, lithium-particle batteries,
semiconductors, chips, streak memory and hard drive gadgets • It is presently one of
the world's biggest makers of cell phones and cell phones powered by the notoriety of
its Samsung Galaxy line of gadgets.
PRICE STRATEGY OF SAMSUNG:
Estimating is one of the significant issues in showcasing as it requires understanding
the item and understanding the market. Samsung is confronted with exceptionally
rivals by others in the market like Apple, HTC, and oppo, Nokia among others.
Samsung embraces an estimating technique that is winning. Samsung has not been so
famously before however have embraced procedure in showcasing to expand its
prominence in the Smartphone advertise. Toward the finish of 2016, it drove the cell
phone showcase with a portion of 21.2% contrasted with 22.3% in 2015. Samsung
despite everything drives the cell phone to advertise in 2020
Skimming Pricing Strategy of Samsung
Samsung also a big popular brand thats why its again using Skimming
method
It is planned for expanding benefits by charging a more significant expense at first
to the principal clients. With time the cost is brought bit by bit down to draw in
more customers to buy it. Organizations will utilize this system to benefit from
those purchasers that have the desire of spending on an item that has front line
innovation.
Samsung items in the market are genuinely serious and are truly outstanding in
the market. That being the situation, Samsung utilizes a value skimming
estimating methodology to get the best incentive for its items. In practically all
cases, it is the first to dispatch new cell phone items. Samsung does this at an at
first more significant expense before the contenders really get up to speed. The
organization will in the end bring down the cost. The different systems that can be
utilized to advertise, for example, concentrated conveyance, specific
dissemination, elite appropriation, and diversifying, nearby different parts of the
promoting blend. Samsung items are made accessible in the market through
fluctuated methods for appropriation. Samsung executes the dissemination by
taking a shot at an idea of channel promoting with the accompanying fragments;
deals and administration vendors, present-day retail, and wholesalers.
Skimming pricing is utilized when an item, which is new in the market or just
propelled, is sold at a generally significant expense in view of its
uniqueness, benefits to clients, or its present Wow factor. Be that as it may,
gradually when the item gets more established in the market, at that point the
cost is dropped and the item is brought at competitive valuing. Skimming permits
the firm to modify and refresh its costs with expanded rivalry bringing about a
diminished cost so as to pull in more shoppers. Pakistani market bolsters this
skimming system energetically.
My Opinion:
No other opinion is that Skimming is best pricing strategy,because
big brands faces competitors not other problems like decrement in their brand
name,thats why penetration strategy is not suitable for that like brands.Samsung
gernally using skimming in Pakistan and also 2nd or 3rd world countries respectively.

OPPO►
INTRODUCTION:
Oppo Electronics Corp. is an electromagne#c manufacturer from China, based
in Guangdong, founded by Tony Chen in 2004. Oppo entered the mobile phone market
in 2008 and entered the Vietnamese market. Male in 2013. With a focus on China and
Southeast Asia market, Oppo confidently upholds the desire to "surpass" big Samsung
and Apple in this market and reach out to the world.Since penetrating into the mobile
phone market, Oppo constantly applies the latest technologies, the best quality and
the most user-friendly products. Oppo is a registered trademark in 140 countries
around the world, providing customers with products that are highly appreciated by
many leading experts
PRICE STRATEGY OPPO:
The price of OPPO mobile phones ranges from 20,000 RS.to 1 lakh Rupees standing in
the mid-range and high-end prices. Among the same products in the mobile industry,
the price of OPPO mobile phones is comparatively higher. Different series are priced
differently. Series A mobile phones are priced between RS 20,000 TO RS 70,000 while
Series R mobile phones are priced between RS 70,000 to RS.1 lakh. In terms of the
overall price strategy, the prices of OPPO mobile phones are unified across the country
and are strictly regulated.
Skimming pricing strategy of Oppo:
Oppo company is also one of the bestselling brands in Pakistan but it also has its
drawbacks and Oppo company cannot afford to do skimming because there are other
companies who are available in competing price and technology, and it would be a bad
idea to do skimming knowing their state and cannot afford to do skimming with their
current competitors
There’s no doubt that Oppo is rising in the market very fast but there are not able to
produce a Smartphone that they can do skimming with.
Oppo company don’t met with conditions for the skimming strategy for pricing.
Penetration pricing strategy of Oppo:
Oppo gradually working with penetration strategy because oppo want to take part in
Pakistan big technology or smartphone markets so penetration is only a ways to make
a brand name in Pakistan
Penetrating pricing strategy is the best for Oppo because they want to get a hold of
the market that’s why Oppo company is penetrating pricing strategy and they met the
condition for it in this way they can get the most of the market costumers and increase
their production and sales this is the best way for Oppo to earn their trust among
people by lowering the price of the Smartphone they can penetrate in the market.
My opinion:
Oppo should use penetrating strategy
This is a good method for Oppo►
The reason I think Oppo should use this method because they are doing well in
the Pakistani market and are leading market shareholder. They are producing
Smartphone at affordable prices for the low income to middle income people.
Oppo is not a big game like Apple I-Phone and Samsung that’s why the need to
use penetrating strategy pricing.

-----------------------------------------

QUESTION NO #2
COCA-COLA►
MEDIA PLANNING OF COCA-COLA:
INTRODUCTION►

THE COCA-COLA COMPANY, AN AMERICAN PARTNERSHIP ESTABLISHED IN 1892 AND


TODAY CONNECTED FUNDAMENTALLY IN THE PRODUCTION AND OFFER OF SYRUP
AND CONCENTRATE FOR COCA-COLA, AN IMPROVED CARBONATED DRINK THAT IS A
SOCIAL FOUNDATION IN THE UNITED STATES AND A WORLDWIDE IMAGE OF
AMERICAN TASTES. THE ORGANIZATION ADDITIONALLY CREATES AND SELLS OTHER
SODA POPS AND CITRUS DRINKS. WITHIN EXCESS OF 2,800 ITEMS ACCESSIBLE IN
EXCESS OF 200 NATIONS, COCA-COLA IS THE BIGGEST REFRESHMENT PRODUCER AND
MERCHANT ON THE PLANET AND PERHAPS THE BIGGEST ENTERPRISE IN THE UNITED
STATES. CENTRAL COMMAND IS IN ATLANTA, GEORGIA.

MEDIA PLANING OF COCA-COLA Types:

• PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)


• BROADCAST MEDIA (RADIO, TV)

1) PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)

Coca-Cola attempts and print promotions in every single driving paper


including The down, Jung, nawa-I-waqt, Daily Yadain, Daily News, Daily Times,
Daily Express, khabrain, and papers also

Coca-Cola place its advertisements in every driving magazine too for example
Sunday magazine, Akhbar-e-Jahan, libas, mag, and so forth

Newspapers are one of the most well known types of media promoting that is
broadly utilized by Coca-Cola. Coca-Cola Company is one of the organizations
that has featured media ad in its prior stages, and at this point the organization
has been occupied with media publicizing for over 100 years.

Banners and billboards are additionally broadly utilized as an essential piece of


the Coca-Cola media advancement. The bulletins are typically positioned at the
downtown areas and parkways around the world just as certain pieces of the
country zones. Banners, then again, are ordinarily shown at the open vehicles,
shops and cafés
Magazines are generally utilized at a worldwide level to promote Coca-Cola.
The magazines are picked by their meaningfulness by the objective client
fragment of the organization. These notices normally possess a whole page of
the magazine to amplify the positive effect of the promoting activities.

2) BROADCAST MEDIA (RADIO, TV):


Coca-Cola attempts and publicizes in every Pakistani channel including GEO,
HUM ARY, INDUS, TV ONE, HBO, and so forth. Coca-Cola likewise plays its
promotions on nearby channels like PUNJAB TV and RADIO.

Coca-Cola has been promoted through television in numerous nations. Coca-


Cola highlights various advertisements in various nations. These promotions
are readied considering the neighborhood culture to maintain a strategic
distance from any misconceptions because of the distinctions in the way of life
of various nations.

Coca-Cola is likewise promoted in cinema and this is embraced in two different


ways. Right off the bat, Coca-Cola video ads are played in films before the film
begins. Furthermore, Coca-Cola is publicized through item position in motion
pictures, wherein the beverage is included some place during the film and the
effectiveness of the item situation is amplified by demonstrating the beverage
being devoured by the lead job.

Coca-Cola radio advertisement ordinarily keeps going just a couple of


moments however is viewed as effective regarding expanding brand
mindfulness and client faithfulness

.
ONLINE MEDIA►

Internet is another stage where the different types of Coca-Cola notices are set. In
particular, the brand's online notice is attempted through the broad utilization of
standards, spring up promotions, on-location sponsorships, and different types of
online ads in a great many sites alongside the globe. There are likewise different
gatherings and sites committed to Coca-Cola fans, where clients can share their
accounts including Coca-Cola.

COCA-COLA SOCIAL MEDIA ADVERTISING►

• Facebook

• Twitter

• Instagram

• YouTube

• Google Plus

• Pinterest

• Other online networking channels and so forth.

Conclusion:
Coca-Cola no uncertainty go to the heartbeat of Pakistanis. Coca-Cola is one of
the pioneers in supporting the most significant, exciting occasions. For example
Cricket matches, shows, and numerous other social events. The occasion at the
current they are sorting out a Basant celebration for which they hectically
arranging stuff.

PEPSI►
INTRODUCTION►
Pepsi is a carbonated soda pop that is delivered and fabricated by PepsiCo. Made and
created in 1898 and presented as "Brad's Drink", it was later renamed as Pepsi-Cola on
June 16, 1903, at that point to Pepsi in 1961.

Pepsi cola is one of the biggest soda pops enterprises which work in Australia. The
principal results of the organization involve distinctive sodas brand including Pepsi,
Pepsi light, Pepsi Max, 7UP, Diet without 7up, caffeine Pepsi light, Mountain dew.

MEDIA PLANING OF PEPSI FOLLOWING PARAMETERS►

• PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)


• BROADCAST MEDIA (RADIO, TV)

PEPSI ADVERTISEMENT HISTORY:


While presenting Pepsi-Cola, when known as "Brad's beverage", as their first item in
1898 "Thrilling, fortifying, Aids processing", was the first trademark promoted for the
forthcoming drink. By 1910, establishments were spreading in twenty four states,
selling more than 100,000 gallons of syrup for every consistently. Caleb bradhan the
maker of Pepsi was promoting Pepsi through papers since he had renamed it Pepsi-
Cola

PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)►

Print ads will be promotions that are printed by organizations and distributed in
papers, magazines, leaflets, and flyers.

Pepsi attempts and print advertisements in every single driving paper including The
down, Jung, nawa-I-waqt , Daily News, Daily Times, Daily Express, khabrain and papers
too

Pepsi place its promotions in every driving magazine too for example Sunday
magazine, Akhbar-e-Jahan, libas, mag, and so on.

Effective words:
Pepsi always create a brand slogan to remember its name
in public mind like in Pakistan a very famous is "Dunya hai Dill walon ki".This
time of slogan create a big impact of brand on people minds.

Effective Print Media:


Pepsi utilized different semiotics for print media promoting: hues utilized, the mottos,
music, dress, motions and articulations, camera points, and so forth utilized in the
individual ads. It is stunning how everything from the basic jug structure, the content
utilized in the commercial ordinarily advance the shading and delight of Pepsi in
magazines and papers, yet significant implications. We generally look that Pepsi
consistently advance their image with any sort of food like Burgers, BBQ, Biryani in
magazines and paper divider which can impact and influence the crowds and
customers. I will contact the purpose of "Euphoria" utilized for selling in the
promotions of such brands and name a couple of other people who utilize such
strategies. Pepsi likewise advances their image through print their logo, motto on
Pakistani player Shirts, for the explanation of addition the ubiquity of Pepsi in World.

OUTDOOR ADVERTISING►

Outdoor advertisement are ads on:


• Billboards
• Kiosks on electric poles
• Bus shelters
• Vehicular display
• Wall posters
• Banners
• Landscape and street furniture
BROADCAST MEDIA (RADIO, TV)►

Pepsi tries and advertise in all Pakistani channels including GEO, HUM ARY,
INDUS, TV ONE, HBO, etc Pepsi also plays its ads on local channels like
PUNJAB TV and RADIO.

PEPSI SOCIAL MEDIA ADVERTISING►


• Facebook
• Twitter
• Instagram
• YouTube
• Google Plus
• Pinterest
Other social media channels etc.
Effective Broadcast Media:
The television and radio commercials, online advertisements, portray the
product as a hero, presenting Pepsi as the perfect accompaniment to all
manner of food -- like hot dogs, snack chips and pizza -- and all manner of
fun, like football games and dates. The campaign replaces right-brain ads
infused with celebrities and music that began with the theme ''The joy of
cola'' in 1999, which became ''The joy of Pepsi'' in 2001. Pepsi
create ads have been replete with jingles, humor, stars and special effects,
a far cry from the prosaic days when Pepsi was called ''the kitchen cola'' and
ads carrying the theme ''Be sociable, have a Pepsi'' showed that Pepsi is a
national product of country.

SURF EXCEL►
INTRODUCTION►

Surf Excel Surf Excel, launched in 1948 under the brand name 'Surf' in Pakistan and in
1959 propelled in India as a first cleanser powder. At first, the brand was situated on
the spotless suggestion of "washes whitest". In any case, with the development of
various nearby cleanser producers and the section of other worldwide brands, Surf
Excel experienced different changes in its Brand Communication. This is in accordance
with the worldwide correspondence foundation of Dirt Is Good, which is a
correspondence methodology of Unilever for its top-notch cleanser items, sold under
different brand names, for example, Omo In Brazil, Persil in UK and Skip in France,
Greece, Spain and Portugal. A portion of the other significant cleanser results of
Unilever in India are Rin and Wheel.

MEDIA PLANING OF SURF EXCEL FOLLOWING PARAMETERS

• PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)


• BROADCAST MEDIA (RADIO, TV)

PRINT MEDIA (NEWSPAPER, MAGAZINE ETC):


Surf Excel is truly an outstanding and old cleanser powder in Pakistan. Surf Excel is a
worldwide item and it's utilizing print media for each prolonged stretch of time. It's
additionally printed their advertisements in papers in light of the fact that for the most
part in Pakistan utilizing papers over magazines. Surf exceed expectations presently
advance their promotions through well-known superstars and Stars of various industry
and plans extraordinary promotions for Ramzan Kareem "To wash hearts in Ramadan"
its a unique trademark used to advance their washing image

BROADCAST MEDIA (RADIO, TV) :


Lux generally use Drama TV channels ( ARY Digital, Hum TV, Geo TV, Apna
channel) for advertisements like and utilize various techniques in better places.

ADVERTISEMENT►
The greater part of the correspondence is finished with the assistance of
youngsters through slogan Dirt is acceptable.

• Media ad financial plan is around PKR 40, 000,000 of every 2012, which was
PKR 27,939,217 out of 2009. • 70 % of the individuals who use Surf Excel
unmistakably reviewed the various advertisements.

• 30% of the Surf Excel respondents said that the organization satisfies the
cases made in promotions, 52% said that somewhat they satisfy claims made in
advertisements, and the staying 18% said that they don't satisfy claims. 40.
Spotlight: Dirt is acceptable 41. Incorporated Marketing Communication 42.
Advertising 43. I'm Paid to Learn Educating 2300 Child Workers In Pakistan 44.
Learning through Play

• Initiative of Surf Excel – A Brand of Unilever Promoting Experiential Learning. •


Selection of three Parks in Lahore, Karachi, and Rawalpindi. • Signing MOU of
parks with District Governments for the time of one year. • Installation of five
play hardware in each park with the assistance of Rafi Peer Group. • Attachment
of one neighboring school to each stop by MOU for a time of one year. •
Partners: • Idara-e-Taleem-o-Aagahi • Parks and Horticulture Authority

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