Analyzing Pricing and Promotional Strategies for Organic Food Store

This presentation delves into various pricing strategies suitable for an organic food chain store, emphasizing the interconnectedness of pricing and promotion. It highlights five key strategies: premium pricing (creating a perception of high quality through elevated prices), penetration pricing (entering the market with low prices to gain market share), economy pricing (maintaining low prices through minimized production and marketing costs), promotional pricing (temporarily increasing product value to boost sales), and psychological pricing (using prices that have a psychological impact on consumers). Each strategy's promotional implications are discussed, including the choice of promotional channels and the messaging used. The presentation concludes that a well-considered pricing strategy, tailored to the specific goals and competitive landscape of the organic food store, is essential for success, suggesting economy or penetration pricing as potentially suitable options.

Pricing
Strategies
Name of the Student

Introduction
• The given presentation will concentrate on the
different strategies which might be adopted by a
marketing manager of an Organic Food Chain
Store.
• Pricing and Promotion are largely connected to
one another and a decision in one area tends to
have an impact on the other as well (Kotler, 2015).
• Hence, the presentation will highlight five major
pricing strategies which can be adopted and how
they can have an impact on the pricing of the firm.

Premium Pricing
• Premium pricing also known as prestige pricing is the primary
practice of keeping the price of the product considerably
higher so that the perception of the customer changes over the
time and the believe that the product is of optimum quality
(Moutinho & Vargas-Sanchez, 2018).
• The practice is adopted in order to change the mindset of the
customers and make them assume that the product belongs to
high quality and distinction (Malhotra & Peterson, 2014).
• The strategy is also known as skim pricing

Promotional Strategies of the
company
• Initiation of the premium pricing strategy helps the particular company in creating
exclusive brand image.
• The promotional medium will change accordingly. This means that if the product is
priced high, then the medium might be a business magazine or television adverts on
channels (Keller & Kotler, 2016).
• The promotional approach will be designed accordingly. For instance, the features
portrayed of the product, will be according to the price it is placed at and the kind of
consumers who purchase the product. They will be aesthetic in nature.

Penetration Pricing
• The penetration pricing strategy is designed so that the price of the
products are considerably low as compared to potential competitor.
This gives rise to price wars (Armstrong et al., 2015).
•
• In case of a penetration pricing strategies:
• The company aims to engage in large sales volume
• Hence, the approach to promotion is different and just the basic
value of the product is concentrated on.
• The promotional medium will also change and the channels used
will be more local in nature.
Promotional Strategies of the
company

Economy Pricing
• Economy pricing is technique whereby certain retail food
products are sold at lower prices and for this the marketing as
well as the production costs have to be kept considerably very
low (Sheth & Sisodia, 2015).

Promotional Strategies of the
company
• In the given pricing strategy as well the approach
towards the approach is totally different. The
primary approach is to engage in maximum sales in
bulk and hence, the brand value and image is not
given much importance to.
• Local channels of promotion are used like Radio
advertisements and local newspapers (Turnbull &
Valla, 2013).
• The primary purpose of the promotion is to clear the
stock held by the owners

Promotional Pricing
• The promotional pricing strategy tends to increase the value of the
product in order to foster a boost in the sales. When the price is low
and the value is high then the products are assumed to be of a
greater value and this crates a sustained impact on the minds of the
customer.
• This type of promotion is temporary and the one on one free is an
example of this (Bresler & Lubbe, 2014).
Promotional Strategies of the
company
The primary objective of the promotion in case of
promotional pricing is to create a sustained demand of
the product and hence more focus is given on the given
offer (Zimmerman & Blythe, 2013).
The promotional mediums are persuasive in nature like
pamphlets, mobile advertisements and local newspapers
The promotional strategy aims to clear the product and
make the given customers used to the given products

Psychological Pricing
• The psychological pricing is based on the concept that certain
prices have a psychological impact. This tends to say that the
prices tend to perceive odd prices like 19.99$ as
comparatively lower than the 20$. This tends to state that the
products may initiate higher demand.

Promotional Strategies of the
company
• The promotional strategy aims to have a sustained demand and
change the perspective of the consumers.
• The main aim is to initiate sales and create a good value and
image of the product in the eyes of the consumers.
• Channels like mobile messages, emails, posters are used to
create demand.

• Therefore, from the given analysis it can be stated that if the
marketing manager of the organic food store wants to use a
pricing strategy, it needs to have a good strategy in mind and
the optimum pricing needs to be adopted.
• The company can adopt an economy pricing strategy as it is
suitable for a food product option or it can go with the
penetration strategy to combat with competition.
Conclusion

References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Bresler, M., & Lubbe, I. (2014). Marketing management.
Keller, K. L., & Kotler, P. (2016). Marketing management. Pearson.
Kotler, P. (2015). Framework for marketing management. Pearson Education India.
Malhotra, N. K., & Peterson, M. (2014). Basic marketing research. Pearson.
Moutinho, L., & Vargas-Sanchez, A. (Eds.). (2018). Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the
future. Routledge.
Turnbull, P. W., & Valla, J. P. (2013). Strategies for International Industrial Marketing (RLE
International Business): The Management of Customer Relationships in European Industrial
Markets. Routledge.
Zimmerman, A., & Blythe, J. (2013). Business to business marketing management: A global
perspective. Routledge.