Economics Assignment: Pricing Strategy and Forecasting for Anime Inc.

This report examines the pricing strategy and forecasting for a small startup, Anime Inc. It explores the application of different pricing strategies, such as premium, skimming, and penetration, with a focus on how these strategies impact the business. The report advocates for a penetrative pricing strategy, which is believed to be most effective for attracting customers and gaining market share in the long run. It highlights the importance of pricing strategies in communicating value to customers and maximizing sales. Furthermore, it acknowledges the challenges of implementing and adapting pricing strategies. The report provides a detailed analysis of how these strategies can be applied to a business like Anime Inc. and how they contribute to its overall success. The report also includes references to academic research on the topic.

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ECONOMICS ASSIGNMENT
ECONOMIC STRATEGY AND FORECASTING

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Animeker Inc. is a US based animation maker with small scale of operation and hence comes
under the criteria of a small start up. There are different pricing strategies that the company
can use such as premium, skimming, economy and penetration. While the premium price is
more than any of the options the economy is the lowest (Kienzler & Kowalkowski, 2017). If I
were in charge of the marketing department I would have used a penetrating price strategy for
a start up.
This pricing strategy would allow the company to combat the rivals in the short run and
attract more and more customers in the long run. The product and the services sold by this
company is still elastic in nature and hence a low price would be helpful in increasing the
sales in the long run.
The most important advantage of pricing strategy is that it puts across message to the
customers of the market (Li et al. 2016). In addition to that pre adjusted pricing strategy also
helps in the sales maximisation as well. However, one of the biggest disadvantages of pricing
strategy is that it is very tough to implement them. Apart from that, any kinds of change that
deviates from the strategy leads to instability.
Based on the product and the market the company operates in, a penetrative pricing strategy
would be the best. This will attract a lot of customers for the company in the short run and
hence the reputation will increase. This will also help the company in the long run combating
the premium companies of the market.

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Reference
Kienzler, M., & Kowalkowski, C. (2017). Pricing strategy: A review of 22 years of marketing
research. Journal of Business Research, 78, 101-110.
Li, B., Hou, P. W., Chen, P., & Li, Q. H. (2016). Pricing strategy and coordination in a dual
channel supply chain with a risk-averse retailer. International Journal of Production
Economics, 178, 154-168.