Branding Pricing and Distribution
May 20, 2012
The company chosen and used for this paper is a mobile transport company that caters specifically to senior citizens. This particular paper will explain in detail domestic and global product branding strategy, optimum pricing strategy and a distribution channel analysis that identifies the wholesaler, distributor, and retailer relationships including e-Commerce. Discussions within the paper will also include the use of a push or pull strategy, a distribution channel analysis and supporting references.
Domestic and Global Branding
A brand is the likeness, idea or image of a specific product or service that buyers connect with, by identifying the name, logo, slogan, or design of the entity that owns the idea or image. When the idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product, it is then considered branding. Advertising professionals work on branding not only to build brand recognition, but also to build good reputations and a set of principles to which the company should strive to maintain or exceed. Branding is an important part of Internet commerce because it companies to build their reputations as well as expand beyond the original product and service, and add to the revenue generated by the original brand ("What is branding," 2012). The branding of this company will be specifically related to the transportation needs of the elderly on all levels. The logo will be a silhouette of an elderly person escorted inside a vehicle. The slogan will be “Because you have served for so many years, it’s time for us to serve you!” When functioning on branding, or building a brand, entities that are using web pages and search engine optimization have a few details to work out before being able to build a effective brand. Coordinating domain names and brand names are an important part of finding and keeping visitors and clients, as well as branding a new company. Coordination of a domain name and brand names lends identification to the idea or image of a specific product or service, which in turn lets visitors easily discovery the new brand. The brand name for this company will be Mobile Seniors. I chose this name because even though they may be old and presumed to be limited to their travel, our company can have them mobile again. They will be able to travel anywhere they desire ("What is branding," 2012). The branding will be the same for both domestic and global. The product will be pitched in the same fashion locally and internationally. Optimal Pricing Strategy
The optimal pricing strategy will consist of the calculation of the present fuel costs, mileage, low insurance coverage fee and a fee for wear and tear of the vehicle. The insurance and wear and tear fees will be very minimal because the clients may not be using the service at long intervals. Even if there is a monopoly and our company is the only company offering this service in the area, new will not increase our price unless the value of overhead prices increase. This is a for-profit business, but we are in business to serve the clients, not rip them off and take their money. Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as far as the customer can bear. The pricing strategies for a producer operating in a perfect competition structure are also fairly intuitive. They are price takers, and hence price is set at the marginal cost of the product. This is due to the fact that there are many firms offering nearly identical products. However, there is optimal pricing for the market structures offering differentiated products with many...
References: (2012). What is branding. Retrieved from http://www.brickmarketing.com/define-branding.htm
Optimal pricing strategy. (2012). Retrieved from http://brainmass.com/economics/economic-systems/325120
Aaker, D.A. Kumar and Day. Marketing Research. New York. John Wiley & Sons, Inc. 1998
Galician, Mary-Lou (Ed). Handbook of Product Placement in the Mass Media
Investopedia. (2012). distribution channeld definition. Retrieved from http://www.investopedia.com/terms/d/distribution-channel.asp
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