Frank's All-American BarBeQue: Pricing Strategy Case Study

This case study analyzes the pricing strategies for Frank's All-American BarBeQue, focusing on the expansion of its takeout business. The study examines two proposed approaches: Frank's preference for a limited menu with premium pricing and Robert's suggestion of a diverse menu with economic pricing. The analysis explores the benefits and drawbacks of each strategy, considering factors such as product quality, target market, and cost management. The solution recommends premium pricing for Frank's limited menu due to its higher quality, uniqueness, and limited production, while suggesting an economic approach for Robert's diverse menu to attract a broader customer base and increase market share. The analysis considers factors like product cost, target market, demographic factors, psychological image, and budget to recommend the best pricing strategy for each scenario. The study uses references from academic journals to support the recommendations.

Running Head: MANAGEMENT
Management

MANAGEMENT 2
Table of Contents
How would you go about pricing these two types of meals?.....................................................2
Strategy for Frank...................................................................................................................2
Strategy for Robert.................................................................................................................2
References..................................................................................................................................3

MANAGEMENT 3
How would you go about pricing these two types of meals?
Strategy for Frank
From this case study, it is found that Frank believe to deliver a limited number of standard
meals for the specified customer. Hence, the Premium pricing strategy will be applicable.
This strategy facilitates the organization for offering their goods and services on quite higher
with higher quality. An organization who introduces their new product in the market, the
manager of marketing has decided the way of product position in the marketplace. In this
situation, the premium pricing strategy will be used due to the higher quality of a product.
There are certain benefits that could mandate to select this method like uniqueness, luxury
products, limited production, no substitutes, and strong barriers to entry (Jolink and Niesten,
2015).
Strategy for Robert
For the idea of Robert, the economic strategy will be suitable. Moreover, the economy
pricing approach could facilitate to the firm to bare minimum to make a profit. Moreover, the
organizations eliminate their promotional and marketing cost and make a profit. The selection
of strategy could rely on many factors like product cost, target market, demographic factor,
psychological image, and money budget, which would be effective in the selling of product
and services. This strategy will also lead to selling a high range of goods and services at
lower cost. It could also enable the organization to make its unique image in the marketplace.
This strategy could also lead to attracting a huge number of consumers in the least time
(Afshin, et al., 2017).

MANAGEMENT 4
References
Afshin, A., Peñalvo, J.L., Del Gobbo, L., Silva, J., Michaelson, M., O'Flaherty, M., Capewell,
S., Spiegelman, D., Danaei, G. and Mozaffarian, D., 2017. The prospective impact of food
pricing on improving dietary consumption: a systematic review and meta-analysis. PloS
one, 12(3), p.e0172277.
Jolink, A. and Niesten, E., 2015. Sustainable development and business models of
entrepreneurs in the organic food industry. Business Strategy and the Environment, 24(6),
pp.386-401.