Panasonic Toughbook: B2B Marketing Pricing Strategy Analysis

This report provides a comprehensive analysis of Panasonic's business-to-business (B2B) marketing strategies, specifically focusing on the launch of its Toughbook product in the Australian market. The report begins with a background on Panasonic, its market position, and the introduction of the Toughbook. It then delves into an analysis of the existing pricing strategies employed by Panasonic, including premium, penetration, economy, price skimming, and psychological pricing, with examples from the Japanese market. The core of the report involves applying Porter's Five Forces to assess the Australian market landscape, evaluating the bargaining power of suppliers and buyers, the threat of substitutes and new entrants, and competitive rivalry. Based on this analysis, the report recommends the adoption of economy and psychological pricing strategies for the Australian market to maximize market penetration and long-term profitability. The conclusion emphasizes the importance of adapting pricing strategies to the specific market conditions and customer psychology for successful B2B marketing.

Business to business marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Background of a company..................................................................................................1
2. Analysis of existing pricing strategy..................................................................................2
3. Recommendation regarding appropriate pricing strategy..................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business to business is a process where products and services exchange used to take
place among two enterprises (Armstrong and et. al., 2015). It could be in between whole seller to
retailer, manufacturer and whole seller etc. Most of the time a business used to take place their
activities in more period of time. This project concern on Panasonic which is a electronic, home
appliances based company founded on march 13th, 1918. They used to manufacture a new
product Toughbook a kind of laptop which want to sale in Australia now. For this they used to
determine some of their retailers which enable them in sale out products at target market world.
They also have to decide appropriate and suitable pricing strategy to manage their place at keen
competitive world.
TASK
1. Background of a company
Panasonic corporations usually known as the Matsushita Electric Industrial Co. Ltd. is a
one of famous electronic corporations organisation with headquarters at Kadoma, Osaka, Japan.
As per the market share of a company, they used to determine as fourth largest electronic
manufacturer in the world. It was founded 100 years ago on 13th March 1918 with 257,000
employees during years 2017.
Company manufacture a new product in the town which have an ability to provide
strength to a company and take formal name as “ToughBook”. As per the current market
scenario, management will used to develop and innovate their ToughBook as CF-31 which
define as a model of 2018.
Toyota also used to deal in some other kinds of products and services like Washing
machine where some of them are automatic where as some are not (Brennan, 2014). They also
used to provide high quality standard services with appropriate time duration with guarantee and
warranty. Business want to expand their market share with 30% till the time of 2020.
Now business want to expand themselves in Australia for which they need to focus better
on working. Although, they are going to launch “ToughBook” in Australia with a good brand
image name in Japan already. For this, management need to focus on some concepts and models
like Porter Five Forces for analysing nature of market and environment better.
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 Bargaining power of suppliers: All suppliers are located globally which enable in
managing trust and faithful relationship. In Australia, business could be moderate power
in context with suppliers because they already have market existence. Although,
Australia is a good market world where suppliers could resist in order to sale out
Panasonic products which define their higher power.
 Bargaining power of buyers: At new market world, some times buyers used to prefer
their existing products and services and not the new one (Charter, 2017). Thus,
bargaining power of buyers usually high in Australia which need to understand by
Panasonic. Thus, management have to focus on this aspect as well for deriving effective
outcome.
 Threat from substitute products: One of a major attribute on which management have to
maintain their keen focus is threat of substitute. Here, management of Panasonic need to
evaluate better things in consideration like in Australia substitute of their ToughBook
laptop would be Tablets etc. Thus, management have to focus on all kind of substitute
first and then need to craft their better strategies in such aspects.
 Threat of new entries: Although, business managers of Panasonic found that threat of
new entries at Australia could be hard. Although, this industry need huge fund investment
which restrict other associations to enter at such market world. But local companies could
used to provide tough competition to ToughBook which provide better services.
 Competitive rivalry among existing producers: In electronic market world, there are
wide number of companies used to take place. Although, some associations which used
to reflect hard rivalry to Panasonic is Sony, LG etc. All of them used to provide better
products and services which enable them in define effective consideration.
2. Analysis of existing pricing strategy
Pricing strategy is such value which used to understand by managers of a company and
used to deliver such products and services (Chaston, 2014). It is really essential to craft a better
pricing strategy for a company which enable and support them in define the things better. For
making pricing strategy, managers of a company need to consider and determine some number
of factors properly like cost of competitors, cost of production, product image positioning in the
mind of customers etc. Some major pricing strategies which already consider by Panasonic in
their working are define and signify as follow:
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 Premium pricing: This strategy define such practices where an organisation used to
maintain their value more as compared with competitors (Drucker, 2017). This enable in
define a luxury feel of the products and services and used to decline at the end of the
stage of PLC. Penetration pricing: This strategy used to adopted by business managers where they
used to sale out produce at lower prices than their competitors by entering into new
market world. Once the market get penetrated properly then effective and absolute
outcome could be drawn. Economy pricing: In this aspect, management used to craft their prices at low where they
used to earn only small profit (Hair and et. al., 2015). Thus, management need to focus
on this aspect for better and effective working. Price Skimming: It associated with when a new product introduce at market world and
there are only few competitors used to take place. Thus, by entering of new one business
used to drop their prices till the entrance used to take place in new area.
 Psychological Pricing: In this strategy, management used to craft and determine such
value of their product and services which not reflected on common sense but completely
define on Psychological attribute.
In japan, Panasonic used to adopted the penetration and economy pricing strategy. This
enable them in order to reach maximum number of individuals which assist and support them in
gain better market world and area as well. This already enable them in take and maintain their
position at such world. Thus, many few competitors not reflected their sales and profit very
much which enable and support management to grow and diversified their operations. In japan,
ToughBook not cost so much because its a local market area for an entity where they used to
focus on creating vast customer base which enable them in gain effective and suitable outcome
in nature of frame.
3. Recommendation regarding appropriate pricing strategy
ToughBook is a laptop which used to deliver by the Panasonic and used to target
Australia as a place for further expansion. Management want to expand themselves in Australia
better so that their product could be expand in better and supportive manner. On the basis of
Porter Five Forces, management found that number of competitors are low where rivalry is also
less in nature (Holliman and Rowley, 2014). Thus, business need to understand the kind of
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pricing strategy which they have to follow in near future course. This assistance enable them in
gain and define better working which further assist management to gain and define better
outcome.
One of a most appropriate strategy for expansion in Australia is economy and
psychological pricing. These two are the best approaches which enable them to maintain their
keen competition position at market world. Although, they need to directly target the mindset of
various individuals first and then used to launch their ToughBook over there. Along with this,
economy pricing enable them in earn small profit in starting age but later it will reflect better
profitability for a company (Jussila, Kärkkäinen and Aramo-Immonen, 2014).
Hence, two approaches of pricing will used to bring benefit to an association in long term
aspect which define and support in analysing supportive and effective outcome in nature.
Panasonic have to understand such aspects in better and definite frame of references.
CONCLUSION
It get concluded from the project that business to business marketing is a process where
two or more firms used to operate by align their work with each other. It enable and support
many business associations to used to go some other country and facilitate operations. For this
context, managers of a company need to used some adoptable steps which further enable in
define things better. Thus, management need to understand their existing pricing strategy
properly so that a new could be frame properly and effectively. This will assist them in gain
better and supportive outcome in nature so that chances of defining appropriate strategy at new
market world could become possible. Although, theories and concepts enable in signifying the
aspects better and appropriate in tenure so that effectiveness and efficiency could be facilitate in
working operations. Although, there is a need to understand and estimate such aspects better for
suitable implementation.
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REFERENCES
Books and Journals
Armstrong, G. and et. al., 2015. Marketing: an introduction. Pearson Education.
Brennan, R., 2014. Business-to-business Marketing (pp. 83-86). Springer New York.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
Chaston, I., 2014. Small business marketing. Palgrave Macmillan.
Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Hair Jr, J. F. and et. al., 2015. Essentials of business research methods. Routledge.
Holliman, G. and Rowley, J., 2014. Business to business digital content marketing: marketers’
perceptions of best practice. Journal of research in interactive marketing. 8(4). pp.269-
293.
Jussila, J. J., Kärkkäinen, H. and Aramo-Immonen, H., 2014. Social media utilization in
business-to-business relationships of technology industry firms. Computers in Human
Behavior. 30. pp.606-613.
Online
Different Types of Pricing Strategy. 2018. [Online]. Available through
:<http://smallbusiness.chron.com/different-types-pricing-strategy-4688.html>.
Panasonic Marketing Mix. 2017. [Online]. Available through
:<https://www.mbaskool.com/marketing-mix/products/16874-panasonic.html>.
Porter’s Five Forces. 2017. [Online]. Available through
:<http://www.australianstockreport.com.au/education/porters-five-forces/>.
Panasonic Five Forces Analysis. 2018. [Online]. Available through
:<https://www.cheshnotes.com/2018/02/panasonic-five-forces-analysis/>.
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