<< Marketing Question >> In some countries, bananas sold under the ‘Dole’ brand name are available...

<< Marketing Question >>

In some countries, bananas sold under the ‘Dole’ brand name are available on convenience store counters where people pay for their shopping. Such stores also sell products such as chocolate bars, snacks, convenience meals and so on. The bananas are clearly branded with a Dole sticker and they are presented in a box that is also branded Dole. The bananas do not come in any other packaging than their natural skin. The price of each banana is 3 times that of an equivalent banana when bought in a supermarket as part of a bunch. However, the Dole box tells customers that if they buy 2 bananas, they will receive a discount of 20%.

a) Identify and explain the link between this case and marketing concepts of your choice.

b) Discuss the advantages and disadvantages to Dole from this move.

Expert Solution

1(a)“Premium Pricing” strategy is highlighted here. The company is charging a premium price to its customers knowing that it has a customer segment that can pay a higher price if they believe that the product is superior than what is available in the supermarket.
At the same time, a 20% discount on premium pricing is a strategy to lure other customer segment that has the purchasing capacity but somehow find Dole brand somewhat expensive. The discount is a offer that makes the product within ones’ reach.

(b)Advantage of Premium Pricing is that it allows a higher top and bottom margin for the firm. At the same time, it also deters competitors to enter this segment due to premium pricing.

Disadvantages for Dole brand is that a certain customer segment will never be able to access this product. Premium pricing on a product like banana gives the impression that Dole brand caters to high end customers only.

Rahul Sunny answered 2 years ago

<< Marketing Question >> In some countries, bananas sold under the ‘Dole’ brand name are available...

<< Marketing Question >> In some countries, bananas sold under the ‘Dole’ brand name are available on convenience store counters where people pay for their shopping. Such stores also sell products such as chocolate bars, snacks, convenience meals and so on. The bananas are clearly branded with a Dole sticker and they are presented in a box that is also branded Dole. The bananas do not come in any other packaging than their natural skin. The price of each banana...

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<< Marketing Question >> In some countries, bananas sold under the ‘Dole’ brand name are available...

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