Question

Discuss the pricing strategy and justify why the hienz ketchup is using that particular pricing strategy? Discribe in 200 words

Answer 1

1) Pricing at a Premium- Premium pricing, businesses set costs higher than their competitors. Premium pricing is often most effective in the early days of a product’s life cycle, and ideal for small businesses that sell unique goods.

2) Pricing for Market Penetration- Penetration strategies aim to attract buyers by offering lower prices on goods and services. While many new companies use this technique to draw attention away from their competition, penetration pricing does tend to result in an initial loss of income for the business.

3) Economy Pricing - Economy pricing is incredibly effective for large companies like Wal-Mart and target the technique can be dangerous for small businesses. Because small businesses lack the sales volume of larger companies, they may struggle to generate a sufficient profit when prices are too low.

4) Price Skimming - Price skimming involves setting rates high during the introductory phase. The company then lowers prices gradually as competitor goods appear on the market.

5) Psychology Pricing- Psychology pricing refers to techniques that marketers use to encourage customers to respond on emotional levels rather than logical ones.

Heinz is a leading food manufacturing brand. Heinz follows competitive pricing strategy, keeping in mind the target consumer. Company pricing decisions are taken into consideration to adjust to economic conditions and observing consumer habits. Heinz ketchup continues to perform better with increased market share in recent times. Heinz global market share in snacks had decreased over the years but lately it has stabilized.