Recommendation for Big Apple Donut Andcoffee

Topics: Pricing, Marketing, Price skimming Pages: 4 (1607 words) Published: July 4, 2012
Bundled pricing strategy
* Complementary product bundle
Big Apple is a donuts and coffee store chain business. Sometimes, customers patronize Big Apple is not just consume donut products alone. Therefore, it should bundle the donuts with the coffees or other beverage into package to encourage customers to buy a value set at cheaper price. The bundled pricing will attract customer due to the lower total sum-cost of product bundling in compared to total cost of purchase those products in the set individually. Besides that, it will not only generate more profit by maximize the sales and also increase customer satisfaction which they can enjoy greater dining experience at lower price. For example, Big Apple can bundle the two donuts and one (m) coffee/ tea for RM9.90. Then, it will attract customer especially who intended to have high tea after shopping or during working break. It should understand that bundled pricing can generate additional profit and rapid the turnover of lower sales product. In addition, the increase in total sales amount may rapid or increase the ability of retailer to cover cost as the fixed cost of a store such as machine, monthly rental, labors and utilities is quite high to breakeven. * Main product bundle

Big Apple had introduced Donashi in order to attract more customers. We recommend that Donuts and Donashi can bundle together and sell them in one package. Donashis are only available in package. Customer who wishes to try Donashi must purchase in package, they cannot purchase only one or two. If we introduce Donuts with Donashi package, this can allow customer try new products without have to spend much on Donashi. In addition, this bundled pricing can allow Big Apple to target on family who has young-children. The parents can purchase the bundle that the Donashi is for their own children and the donuts are for them. It will increase their satisfaction which they do not need to pay for the higher sum cost...
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