Give solutions to the next problem:

The risks of being eliminated from the market due to the necessity of
maintaining the price at the level needed to cover the production costs.

General Manager:
“I organized this meeting in order to find solutions to the problem our
company is confronting. I have recently received the latest reports regarding
our profit, assets and debts, and the figures are worrisome. I am waiting your
ideas....”

Business Developer:
“It is well known that Pambac company has made a reputation/name
on milling and bakery market due to the range and diversity of products
offered. So, the company still maintains a good position on the market.
In my opinion, at the basic products, even if we have high prices, sales
will not drop, because they are a necessity. The other products offered by the
company on the market are addressed to people with higher incomes who
prefer quality despite high prices.
To all intents and purposes company offers high quality products,
nowadays getting a name and being a brand”
(Elisei Ana – Alina, grupa 613)

General Manager:
“Well I think you have a point but in order to maintain ourselves on
the market we could work out our pricing strategies, in order to include all
sorts of clients. Here are 5 tricky ways to „increase prices without increasing
price”:
1) Premium pricing – which means that, in generally, we use a high price,
but we give products of high quality. In order to confirm the quality, we will
give extra information about the health benefits of the ingredients, and
ensuring Pambac remains a family favourite.
2) Price skimming – by using a high price during the introduction of our
new product inspired by an Asian recipe: “flatbread”. Afterwards, when we
will have reduced our factory costs, we will also reduce the price, to gain
new market segments.
3) Psychological Pricing – to get a customer to respond on an emotional,
rather than rational basis. For example: French baguette costs 1 Ron and 99
bani, not 2 Rons.
4) Captive product pricing – for a product that complements other product.
For example: couscous costs 10 Rons, sauce couscous costs 12 Rons.
5) Economy pricing – placed at “no frills”. For example, our 280 grams loaf
costs 99 bani.
(Diaconu Diana – Maria, grupa 613)

Marketing Consultant:
I agree with your solutions for combating our crises but a political based
on pricing strategies is not enough. We should also improve our strategies
by attracting new clients in order to increase our sells. Here is my idea:
• Promotion of products in supermarkets with free samplings to attract new
clients and demonstrate that our products have high quality at a good
price.
In my opinion is important and necessary to put people in contact with our
products without money because in this way we prove their high quality. In
this way, I think that people will buy regardless of price because will
convince it’s worth.
(Ţurcan Alina – Diana, grupa 613)

Marketing Director:
In my opinion earning customers loyalty goes beyond attracting new
clients. Loyal customers help the brand come to the front by sharing their
satisfactory experience with their friends and colleagues.
As well as this, loyalty programs improve customers retention and
encourage spending, this way we can increase our sells.
The most appropriate loyalty program we can use is a reward
program, by giving tangible rewards to loyal customers. The advantage of
this program is that we can use points to motivate desirable buying
behaviour.
This kind of rewarding let customers concentrate on building points
rather than discounts and the points have a higher perceived value than
money.
We can introduce the Smart Card technology, giving the customers
the ability to earn loyalty points that are then redeemable against future
purchases. Customers can gain points by buying any product from the
Pambac shops , and when they build a number of points they can get free
products or use them for discounts.
(Poiţelea Diana, grupa 613)
General Manager:
Ok then, your ideas are acceptable, but I know you could do better. So see
you next week with new ideas.