Econ 561
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ECO 561
J. Mack Bayles
Business Recommendations for Big Drive Auto
Big Drive Auto is a company that is in the process of redefining its market position in the automobile, truck sales and service industry. Our long range direction and decisions as a company are focused on creating a loyal repeat customer base. The new marketing and advertising initiative being launched paints an image of happy customers who feel “Big at Big Drive”. We want to provide the customers with both their short and long term auto needs. Big Drive will sell you the car, service and products under one roof. Every customer will be treated as a celebrity. Brand image for Big Drive will become synonymous with all things auto and truck.
Pricing Strategy
The business objective is to further penetrate our market share in the auto services division as well as motor oil, coolant and tire sales. Sales trends for these areas have increased over the last three years for both the company and industry. The pricing strategy will work in conjunction with the new marketing efforts and offer unique service package deals. The service deals include most common auto and truck services at a perceived cost savings to the consumer, but increased volume profit to Big Drive. The strategy is one of value based pricing. This approach is when the price of a product is based on the value that it creates for the customer. Value based is usually the most profitable form of pricing, if you can achieve it (Allen, 2010). Martin Christopher examines price as one of the simplest ways of segmenting markets, stating that price segmentation can become far more effective when based on value-in-use. Consumers respond well to a good value during tougher economic times.
Big Drive will also cultivate and increase our already vast network of suppliers and manufacturing partners. These relationships help to provide a wide variety of cars and truck selection in the mid-range and high end quality range. Pricing...
J. Mack Bayles
Business Recommendations for Big Drive Auto
Big Drive Auto is a company that is in the process of redefining its market position in the automobile, truck sales and service industry. Our long range direction and decisions as a company are focused on creating a loyal repeat customer base. The new marketing and advertising initiative being launched paints an image of happy customers who feel “Big at Big Drive”. We want to provide the customers with both their short and long term auto needs. Big Drive will sell you the car, service and products under one roof. Every customer will be treated as a celebrity. Brand image for Big Drive will become synonymous with all things auto and truck.
Pricing Strategy
The business objective is to further penetrate our market share in the auto services division as well as motor oil, coolant and tire sales. Sales trends for these areas have increased over the last three years for both the company and industry. The pricing strategy will work in conjunction with the new marketing efforts and offer unique service package deals. The service deals include most common auto and truck services at a perceived cost savings to the consumer, but increased volume profit to Big Drive. The strategy is one of value based pricing. This approach is when the price of a product is based on the value that it creates for the customer. Value based is usually the most profitable form of pricing, if you can achieve it (Allen, 2010). Martin Christopher examines price as one of the simplest ways of segmenting markets, stating that price segmentation can become far more effective when based on value-in-use. Consumers respond well to a good value during tougher economic times.
Big Drive will also cultivate and increase our already vast network of suppliers and manufacturing partners. These relationships help to provide a wide variety of cars and truck selection in the mid-range and high end quality range. Pricing...