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Retail Marketing And Distribution.

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Mian Ansab

on 15 January 2013

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Transcript of Retail Marketing And Distribution.

Cons: Item contribution margin Pros and Cons of changing portion sizes An Important factor explaining why people buy and eat larger portion sizes than they actually need, is the 'value for money' Value pricing is a strategy that bridges the gap between economy and luxury. Famous Fast Food Chains Under pressure because
of the reluctance of people
to pay higher prices. Unreliable situation of economy
increases costs for
about 45 Million dollars than expected. Fast Food PRICING!! Pros and cons of Changing prices. What Is Value Pricing? Overview of the case Advantages of value-priced meals uses little markup and relies on high volume for higher profit.
Economy-oriented businesses rely on high volume.
value-priced product lines tend to be more resistant to economic downturn. Pricing Pricing is the process of determining what a company will receive in exchange for its products. Tough economy situation. Re-analyzing pricing structures. Changing pricing strategies Costs getting higher and higher. Changing Dollar menu. It increases Store traffic
but not Profits. Increases operating costs. Franchises are not satisfied
with the pricing. Factors which have an impact on pricing Disadvantages of value-priced meals

Increases store traffic and operating costs.
Small profits do not cover higher operating costs.
The luxury products are perceived as
"too expensive" Pros: Company’s costs
Customers’ sense of product’s value
Competition’s price Different Portion sizes Changing price by day of week Discounting all meals by the same percentage. VS The 3 C's: Diet conscious people are able to maintain their healthy diet through smaller portion sizes Mentioning calories of portion sizes in advertisements is helping maintain their diet conscious consumers. The small difference in
large meals hardly
covers your cost. The amount of calories
is often falsely stated
because of the difference
between one meal and one
serving. Important to establish how the average citizen spends. Price is considered an object of immense
concern. How restaurants track?? Sales per server Revenue per day Changing Prices by day of week Advantages : Marketing

Contributes to employment

- Restaurant operators can benefit from steady economies of scale

- The prices are guaranteed to change at certain times of each day or certain days of the week. Disadvantages :
Customer's are impatient.

Instability in pricing.

Profits can be dependent Discounting all Meals by the same percentage. Advantages:
- Encourages competition among restaurants of the same kind
- Contributes to employment
- Restaurant operators can benefit from steady economies of scale
- It doesn’t matter what day of the week it is, nor what time of the day it is; the prices are going to stay low Disadvantages: -Creates unnecessary accounting irregularities
-Businesses could potentially suffer from setting the prices too low for extended periods of time. Subtracting costs from the collected revenue, could possibly yield lower profits. Determining Price Elasticity of Demand- Restaurant Dinner Menu Identify market segments e.g.:
-economic consumers;
-status-orientated consumers;
-personalising consumers. How should restaurants use information on PED?? THANK YOU FOR LISTENING!! :) Skimming involves setting a high price before other competitors come into the market. This is often used for the launch of a new product which faces little or no competition – usually due to some technological features. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved.
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