BACKGROUND OF STUDY
In this era of globalization, companies must be aware of facing strong competition by focusing on the marketing of the products and services. The last decades, the environment surrounding organizations have become more complex and dynamic. This requires a greater focus on adapting the strategy to the changes in the surroundings.
Generally, in operating business, every organization or company always expects to succeed in achieving its goals which have been determined. Various marketing actions must be done in order to achieve the goals. It is general accepted that a condition for companies to achieve profitability is to have a well-defined strategy.
Culinary businesses are now kept on emerging more and more. Companies that operate in culinary must also think the ways to attract customers and to maintain their sales. Pricing strategy is one of the effective ways to increase and maintain the sales, especially the sales volume of the companies. According to Kotler (2005, P.301) “Pricing has been a major competitive weapon employed by Asian business. Their low cost positions have provided the basis upon which they have priced aggressively to gain market share both within and outside the region.”
Today, most of the consumers would like to search for the restaurant that can really satisfy their needs and wants, either in the taste of the food or the price of the food. According to Philip Kotler (2005, P.46), “a customer is satisfied if they achieve what they wanted in the right place and in the right time”. If the products exceed the customers’ expectation, then the customers will be satisfied. By having the customers’ satisfaction, it can increase the sales volume of the company.
Asean Delight restaurant which is the culinary based business has the strategy of maintaining the sales by having the pricing strategy. By having good taste of the product and reasonable price of food, the customers will come back and the customers may recommend Asean Delight restaurant to the other people. The company should really notice on the customers’ needs and wants, then the customers will return and this action is going to increase the sales volume of the company.
Success of the sales volume of the products in Asean Delight Restaurant depends in the marketing especially in pricing strategy. Considering the description that mentioned above, this attracts the writers to do research on their pricing strategy. Based on the statement above, the writers feel the interest to choose the title of “The Influence of Pricing Strategy towards Sales Volume at Asean Delight Restaurant, Medan”
If this problem is not handled immediately, it will cause an unwanted situation that can obstacle the achievement of the company’s purposes. On the other hand, every company, either the commercial company or industrial company will face many problems with different kinds and characteristics which depend on the activities and types of the business that is run by the company. In that case, based on the research done at Asean Delight Restaurant, the writers formulate the problem faced, they are: 1.
Is the pricing strategy effective in increasing the sales volume? 2.
How strong is the relationship between pricing strategy to sales volume? 3.
Are there any other appropriate implementations to the company in order to increase the sales volume instead of the pricing strategy?
SCOPE OF STUDY
Marketing has a very wide of sights and views which can be elaborated into four elements which are product, pricing, place and promotion. In pricing, it also has many elements Pricing strategy consists of new product pricing strategy, product mix pricing strategy, price adjustment strategy, strategy for initiating and responding to prices changes. In that case, due to the limitation of time, condition as well as the information provided, it is a...
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