An enterprise should have a good pricing strategy which is suitable to the company’s current situation or condition in order to earn more profits. By adopting a good pricing strategy, company has a key option to stay viable. If a company wants to earn more profit, merely raising the price of a product is not a good option particularly in economy recession. It can lead a company to downfall as the company’s product lost out in the marketplace because of the price factor.
Product mix pricing strategy is the strategy for setting a product’s price often has to be changed when the product is part of product mix such as product line pricing, optional product pricing, captive product pricing, by-product pricing and product bundle pricing. Different product and service should use different strategies.
In addition, by having good product mix pricing strategies are not enough, an enterprise also need to adjust their basic prices to account for various customer differences and changing situations by using price adjustment strategies. These strategies include discount and allowance pricing strategy, psychological pricing strategy, promotional pricing strategy, segmented pricing strategy and many more.
Nutriplus Lay Hong Berhad is a company that sells several of products with different prices, such as liquid egg, table egg and chicken frankfurters. The current pricing strategies that the company used is product line pricing strategy. Product line pricing strategy is setting the price steps between various products in a product line based on cost differences between the product, customer evaluations of different features and competitors. The reason why they are using these strategies is because different customers prefer different kinds of products and company provides various kind of products in order to establish perceived value differences that support the price differences.
Moreover, the company also uses the psychological pricing strategy and