Celery Roots is a wellness mobile juice bar that offers healthy options for optimal health and wellness by offering an array of juices, smoothies and bottled items for on-the-go. The company will adopt a low price strategy as it begins its operations. A low price strategy is suitable since the company wants to gain a share of the increasingly saturated healthy products market.
The low pricing strategy adopted by Celery Roots will help it gain an edge in the market and thus sell more products. It will also allow the firm to compete on non-price issues such as the quality and freshness of its products. The strategy also allows them to offer a unique product at an affordable price for which there is no effective substitute.
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The greatest advantage of the low pricing strategy for Celery is market visibility. This strategy will enable the company to sell many volumes of products hence enabling it to gain a solid footing in the market ( Kienzler & Kowalkowski, 2017) . Secondly, by offering healthy products low-end prices, the Celery Juice will create a brand loyalty among the middle class who look forward to taking healthy and convenient diets. The other advantage of this pricing strategy is that consumers will have the utmost confidence in the fact that they are deriving maximum value from their purchase of the company’s products as the company adheres to high quality standards. On the downside, low prices might interfere with the customer’s perception of quality. Usually, people associate low prices with low quality, and this may act to harm the firm’s credibility.
The pricing plan will help the company to generate profits in the long-run. By establishing brand loyalty, the company will be able to gain from a sustainable income source. If the sales doe help Celery to meet its objective, then the company will have to adopt a different strategy. Particularly, the company may opt to use premium prices to demonstrate to its customers that its products are of high quality. Overall, the pricing strategy will be key to the company’s sustainability in the market.
References
Kienzler, M., & Kowalkowski, C. (2017). Pricing strategy: A review of 22 years of marketing research. Journal of Business Research , 78 , 101-110.
