Ikhlaq Ahmed: Analysis On Skimming and Penetrating Pricing Strategy
Ikhlaq Ahmed: Analysis On Skimming and Penetrating Pricing Strategy
Ikhlaq Ahmed: Analysis On Skimming and Penetrating Pricing Strategy
QUESTION NO #1
Analysis:on Skimming and Penetrating Pricing
strategy
What is Skimming
Pricing skimming is product pricing strategy by which a firm charges the highest initial
price that customers will pay and then lowers it over time.
What is Penetration
Penetration pricing is a marketing strategy used by businesses to attract customers to
a new product or service by offering a lower price during its initial offering. The lower
price helps a new product or service penetrate the market and attract customers away
from competitors.
SAMSUNG►
INTRODUCTION►
Samsung Electronics Co., Ltd. is a South Korean multinational electronics
company headquartered in Suwon, South Korea • Samsung has long been a
major manufacturer of electronic components such as lithium-ion batteries,
semiconductors, chips, flash memory and hard drive devices • It is currently
one of the world's largest manufacturers of mobile phones and smartphones
fueled by the popularity of its Samsung Galaxy line of Devices.
PRICE STRATEGY OF SAMSUNG:
Pricing is one of the major issues in marketing as it requires understanding the
product and understanding the market. Samsung is faced with highly opponents
by others in the market like Apple, HTC, and oppo,Nokia among others. Samsung
undertakes a pricing strategy which is winning. Samsung has not been so
popularly in the past but have undertaken strategy in marketing to increase its
popularity in the Smartphone market. At the end of 2016, it led the smartphone
market with a share of 21.2% compared to 22.3% in 2015. Samsung still leads
the smartphone market in 2020
Skimming Pricing Strategy of Samsung
Samsung also a big popular brand thats why its again using Skimming
method
It is aimed at maximizing profits by charging a higher price initially to the first
customers. With time the price is lowered gradually to attract more consumers to
purchase it. Companies will use this strategy to capitalize on those consumers that
have the will of spending on a product that has cutting edge technology.
Samsung products in the market are fairly competitive and are one of the best in
the market. That being the case, Samsung uses a price skimming pricing strategy
to get the best value for its products. In almost all cases, it is the first to launch
new smart phone products. Samsung does this at an initial higher price before the
competitors actually catch up. The company will eventually lower the price . The
various strategies that can be used to market, such as intensive distribution,
selective distribution, exclusive distribution and franchising, alongside of other
aspects of the marketing mix. Samsung products are made available in the market
through a varied means of distribution. Samsung executes the distribution by
working on a concept of channel marketing with the following segments; sales
and services dealers, modern retail and distributors .
Skimming pricing is used when a product, which is new in the market or just
launched, is sold at a relatively high price because of its uniqueness, benefits to
customers or its current Wow factor. However, slowly but surely when the
product gets older in the market, then the price is dropped and the product is
brought at competitive pricing. Skimming allows the firm to adjust and update
its prices with increased competition resulting to a decreased price in order to
attract more consumers.Pakistani market support this skimming strategy very
warmly.
My Opinion:
No other opinion is that Skimming is best pricing strategy,because
big brands faces competitors not other problems like decrement in their brand
name,thats why penetration strategy is not suitable for that like brands.Samsung
gernally using skimming in Pakistan and also 2nd or 3rd world countries respectively.
OPPO►
INTRODUCTION:
Oppo Electronics Corp. is an electromagne#c manufacturer from China,
based inGuangdong, founded by Tony Chen in 2004. Oppo entered the mobile phone
market in 2008 and entered the Vietnamese market. Male in 2013. With a focus on
China and Southeast Asia market, Oppo condently upholds the desire to "surpass" big
Samsung and Apple in this market and reach out to the world.Since penetraiting into
the mobile phone market, Oppo constantly applies the latest technologies, the best
quality and the most user-friendly products. Oppo is a registered trademark in 140
countries around the world, providing customers with products thatare highly
appreciated by many leading experts
PRICE STRATEGY OPPO:
The price of OPPO mobile phones ranges from 20,000 RS.to 1 lakh Rupees standing in
the mid-range and high-end prices. Among the same products of the mobile industry,
the price of OPPO mobile phones is comparatively higher. Different series are priced
differently. Series A mobile phones are priced between RS 20,000 TO RS 70,000 while
Series R mobile phones are priced between RS 70,000 to RS.1 lakh . In terms of the
overall price strategy, the prices of OPPO mobile phones are unified across the country
and are strictly regulated.
Skimming pricing strategy of Oppo:
Oppo company is also one of the bestselling brands in Pakistan but it also have its
draw backs and Opppo company cannot afford to do skimming because there are
other companies who are available in competing price and technology, and it would be
a bad idea to do skimming knowing there state and cannot afford to do skimming with
their current competetors
There’s no doubt that Oppo is rising in the market very fast but there are not able to
produce a Smartphone that they can do skimming with.
Oppo company don’t met with conditions for the skimming strategy for pricing.
Penetration pricing strategy of Oppo:
Oppo gradually working with penetration strategy because oppo want to take part in
Pakistan big technology or smartphone markets so penetration is only a ways to made
a brand name in pakistan
Penetrating pricing strategy is the best for Oppo because they want to get a hold of
the market that’s why Oppo company is penetrating pricing strategy and they met the
condition for it in this way they can get the most of the market costumers and increase
their production and sales this is the best way for Oppo to earn their trust among
people by lowering the price of the Smartphone they can penetrate in the market.
Comment:
Oppo should use penetrating strategy
This is a good method for Oppo►
The reason I think Oppo should use this method because they are doing well in
the Pakistani market and are leading market shareholder. They are producing
Smartphone at affordable prices for the low income to middle income people.
Oppo is not a big game like Apple I-Phone and Samsung that’s why the need to
use penetrating strategy pricing.
QUESTION NO #2
COCA-COLA►
MEDIA PLANNING OF COCA-COLA:
INTRODUCTION►
Coca-Cola tries and print ads in all leading newspapers including The down,
Jung, nawa-i-waqt ,Daily Yadain, Daily News, Daily Times, Daily Express,
khabrain and newspapers as well
Coca-Cola place its ads in all leading magazines as well i.e. Sunday magazine,
akhabr-e-jahan, libas, mag etc
Posters and billboards are also widely used as an integral part of the Coca-Cola
media promotion. The billboards are usually placed at the city centres and
highways around the globe as well as some parts of the rural areas. Posters, on
the other hand, are normally displayed at the public transports, shops and
restaurants
Magazines are widely used at a global level to advertise Coca-Cola. The magazines are
chosen according to their readability by the target customer segment of the company.
These advertisements usually occupy an entire page of the magazine to maximise the
positive impact of the marketing initiatives.
2) BROADCAST MEDIA (RADIO, TV)
Coca-Cola tries and advertise in all Pakistani channels including GEO, HUM
ARY, INDUS, TV ONE, HBO, etc. Coca-Cola also plays its ads on local
channels like PUNJAB TV and RADIO.
CONCLUSION:
Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the
leaders in sponsoring the most important, thrilling events. E.g. Cricket matches,
concerts and many other social occasions. Event at the present they are
organizing a Basant festival for which they busily organizing stuff.
PEPSI►
INTRODUCTION►
Print advertisements are ads that are printed by companies and published in
newspapers, magazines, brochures, and flyers.
Pepsi tries and print ads in all leading newspapers including The down,
Jung, nawa-i-waqt , Daily News, Daily Times, Daily Express, khabrain and
newspapers as well
Pepsi place its ads in all leading magazines as well i.e. Sunday magazine,
akhabr-e-jahan, libas, mag etc
Effective words:
Pepsi always create a brand slogan to remember its name
in public mind like in Pakistan a very famous is "Dunya hai Dill walon ki".This
time of slogan create a big impact of brand on people minds.
OUTDOOR ADVERTISING►
Pepsi tries and advertise in all Pakistani channels including GEO, HUM ARY,
INDUS, TV ONE, HBO, etc Pepsi also plays its ads on local channels like
PUNJAB TV and RADIO.
SURF EXCEL►
INTRODUCTION►
Surf Excel Surf Excel, launched in 1948 under the brand name ‘Surf’ in
Pakistan & in 1959 launched in India as a first detergent powder. Initially, the
brand was positioned on the clean proposition of “washes whitest”. However,
with the emergence of numerous local detergent manufacturers and the entry
of other global brands, Surf Excel underwent various changes in its Brand
Communication. This is in line with the global communication platform of Dirt Is
Good, which is a communication strategy of Unilever for its premium detergent
products, sold under various brand names; such as Omo In Brazil, Persil in UK
and Skip in France, Greece, Spain and Portugal. Some of the other major
detergent products of Unilever in India are Rin and Wheel.
Surf Excel is one of the best and old detergent powder in Pakistan. Surf Excel
is a global product and it’s using print media for every long time. It’s also print
their ads in newspapers because mostly in Pakistan using newspapers over
magazines.Surf excel now promote their ads through famous celebrities and
Stars of different industry and designs special ads for Ramzan Kareem to "To
wash hearts in Ramadan" its a special slogan used to promote their washing
brand
Lux mostly use Drama TV channels ( ARY Digital, Hum TV, Geo TV, Apna
channel) for ads like and use different methods in different places.
ADVERTISEMENT►
Most of the communication is done with the help of children through tagline Dirt
is good.
• Media advertisement budget is approximately PKR 40, 000,000 in 2012,
which was PKR 27,939,217 in 2009. • 70 % of the people who use Surf Excel
clearly recalled the different ads.
• 30% of the Surf Excel respondents said that company fulfills the claims made
in advertisements, 52% said that to some extent they fulfills claims made in ads
and remaining 18% said that they do not fulfills claims. 40. Spotlight: Dirt is
good 41. Integrated Marketing Communication 42. Public Relations 43. I’m
Paid to Learn Educating 2300 Child Workers In Pakistan 44. Learning through
Play
• Initiative of Surf Excel – A Brand of Unilever Promoting Experiential Learning.
• Selection of three Parks in Lahore ,Karachi, and Rawalpindi. • Signing MOU
of parks with District Governments for the period of one year. • Installation of
five play equipments in each park with the help of Rafi Peer Group. •
Attachment of one neighbouring school to each park by MOU for the period of
one year. • Partners: • Idara-e-Taleem-o-Aagahi • Parks & Horticulture Authority