The consumer product that I am familiar with is Starbucks coffee. The pricing strategy employed value-based pricing. The approach is tailored to depic consistency and the determination into the provision of quality services in the marketplace ( Schindler, 2011). Therefore, it is carefully selected and founded on a combination of the use of a premium market to branding and the target market. Again, the strength of the beverage allows for ease in driving sales regardless of the high prices associated with the product. Awareness of the existence of the product is massively conducted during holidays and special events.
Moreover, the menu employed in the preparation of the product is highly specialized and focused, which woes customers to settle with the stated prices. As such, they get to experience the professionalism that comes alongside the product and perceives it as matching the attached price ( Schindler, 2011) . Again, maintenance of uniformity in its outlet companies creates an impression of reliability to their customers hence easing pricing.
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Other strategies that could work for the product are premium pricing and price skimming. Premium pricing would allow for setting the prices of the beverage at higher than comparable coffee brands ( Baker, 2010). The strategy is crucial as it would facilitate a boost on the profits in the sections where the buyer is willing to pay more for the product or service. On price skimming, the company can come up with a relatively higher price while still maintaining the quality of its services and then lower them as the market gradually develops.
Indeed the company used incremental cost in its strategy at a particular time when the demand for the product was high ( Baker, 2010) . However, as the demand declined, the company adopted a favorable price to cope with the fluctuating market.
References
Baker, R. J. (2010). Implementing Value Pricing: A Radical Business Model for Professional Firms . John Wiley & Sons.
Schindler, R. M. (2011). Pricing Strategies: A Marketing Approach . SAGE Publications.
