How Pricing strategies Affected the sales of MODE Accessories backpack
Price makes up the one quarter of the controllable marketing mix factors and could be blamed for most company’s success or failure. This report will cover the affect pricing had on the sales of MODE Accessories backpack over a 6-term timeline,
specifically focusing on the pricing strategy in the growth stage of the product, a rise in the market price due to a change in design and how a decision to change the target market led to a change in price.
The initial intentions of MODE Accessories backpack marketing team greatly differed from the end result.
This was due to the lack of the product’s success within the market.
MODE Accessories backpack did not reach the growth stage within the 6 quarter period, despite efforts from the team.
In the first quarter the target market was the ‘Urban Commuters’ segment. This segment was chosen on the basis that they were one of the larger markets, were extremely receptive to promotion, had various ways to reach the product through distribution and were willing to pay more for a product.
The ‘Urban Commuters’ also had similar needs as the ‘University Student’ segment and the ‘Outdoor Enthusiasts’, to an extent. The MODE Accessories team believed that they were able to satisfy the needs of the ‘Urban Commuters’ and through the use of product differentiation strategies also please the ‘University Students’ and ‘Outdoor Enthusiasts’.
The pricing strategy evolved with the changing market and in order stay in competition with competitors. The target segment was changed to ‘University Students’ and the product was further developed. With these product developments the price of the product dramatically rose.
In the fourth quarter the team at MODE Accessories had developed a product that they believed would begin to cover former losses and hopefully please the consumer.
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