Pricing Policies Jumana Mohammed

Pricing Policies
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Jumana Mohammed Al-Habsi
ST08635
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Table of Contents
Introduction:...............................................................................................................................3
Task 1:........................................................................................................................................5
Concept of Cost-plus Pricing:................................................................................................5
Limitation of Cost-plus Pricing:........................................................................................5
Target Costing........................................................................................................................6
Target Costing Process.......................................................................................................6
Difference between Cost Plus Pricing and Target Costing Pricing:......................................6
Example of Cost Pricing Method...........................................................................................7
Task 2:........................................................................................................................................7
Pricing Policy adopted by Hewlett-Packard:.........................................................................7
Promotional and bundling price strategies.........................................................................8
Market Segmentation Approach........................................................................................8
Task 3:........................................................................................................................................9
Penetration Pricing Method...................................................................................................9
Skimming Pricing method use by Apple...............................................................................9
Discounted Pricing Method.................................................................................................10
Conclusion:..............................................................................................................................11
Reference:................................................................................................................................12
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Introduction:
Pricing strategies take all of the company considerations into account, including growth
targets, strategic priorities, target demographic, brand positioning, and product
characteristics. External variables, such as customer appetite, supplier prices, industry, and
economic patterns, affect them as well. There are different types of pricing methods used by
the company to compete with its competitors. In the recent scenario, the level of competition
is increasing at a greater level that forces the companies to adopt an effective pricing method
to retain their existing consumers and attract new consumers. The domination of Apple in the
tablet market has now become so intense that rivals use competitive promotional tactics to
combat the iPad. Last week the Touchpad Tablet of Hewlett-Packard was immediately
targeted for sales flops as the firm cut the price to 99 dollars, from 399 dollars. Consumers
have raced to take the tablets and provide a more manufacturing cycle to keep consumers
satisfied given their lack of revenue.
In the following part, there will be a detailed analysis of the pricing strategies adopted by HP
for its new touchpad tablet that affect the sales of other competitors as well as the pricing
strategies changes by the leading company Apple to retain in the competitive market to the
certain extent.
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