mgt301 gdb solution fall 2019 2020
Principle of Marketing (MGT301) Fall, 2019
Graded Discussion Board No.1
Due Date: Jan23, 2020.
Total Marks: 05 Marks
Topic: “New-Product Pricing Strategies”
NOTE: There is no grace period in case of GDB
To familiarize the students with the concept of new product pricing approaches, so that they could learn that how companies can drag the attention of their target customers using new-product pricing strategies.
After attempting this case student will be able to understand how tactfully modifying/setting pricing strategies can benefit any organization in clientele maximization and value creation.
In Pakistan, Suzuki, Toyota and Honda motors are the major market players ruling automobile sector for the last 4 decades.
In 2000, Dewan Mushtaq Group diversified its business operations by entering in the automobile sector. Dewan Farooque Motors Limited signed Technical License Agreements with Hyundai Motor Company and Kia Motors Corporation in December 1998. Due to some reasons Kia Motors had to stop its business operations in Pakistan in 2007. But later in 2018, Kia Motors set its manufacturing plants in Pakistan with the help of Lucky Cement and launched Kia Sportage. With its unique and attractive looks Kia Sportage gained significant publicity and fame specifically in the category of sport utility vehicle (SUV) sector. To penetrate its roots more deeply in Pakistan, Kia Sportage introduced different models of cars to cater needs of people whose monthly income starts from 1 lac and above. The reason of introducing different models of Sportage car is to cater needs of people as per their income bracket and also to grab share from market giants such as, Suzuki, Toyota and Honda. Since these market giants had strongly captured local market, therefore, Kia comes up with the idea of keeping its pricing strategy synchronized as per its competitors.This idea clicked well for Kia in terms of representing itself as a premium brand and creating a challenging environment for the other market giants.
Point of discussion:
Which “ONE” of the three belowpricing strategies do you think “Kia Sportage” has employed to increase its sale and grab large market share in Pakistan and what benefits it could achieve using this strategy?
- Competition Based Pricing Strategy
- Market-Penetration Pricing Strategy
- Market-Skimming Pricing Strategy
Competition based pricing strategy
In this strategy, the prices is lower than what the market expected. The price strategy for initial to break market competition. in this price strategy, customers offer products with lower price to build credibility and increased the customer reliability and attraction.
Note:This is idea solution only don’t copy paste write it in your own words.
*Note: Remember, you are required to select only 1 strategy and justify your answer through any 2 valid and logical arguments. “Definitions of these strategies are not required”.
The total marks of this GDB are 05; selection of correct pricing strategy carries 2 marks and each logical justification carries 1.5 marks. Avoid irrelevant text/material while answering the question.
- Keep your discussion with the mentioned scenario and irrelevant answers and material will not be graded.
- Do not copy/paste the text/paragraphs from the reference links.
- Be careful from those blogs who are promoting cheating culture among our students and killing their creativity and critical thinking. Answers copied from such blogs will be straightaway marked as zero. Similarly, any relevant or irrelevant material copied from internet sources will get the same treatment. It can seriously damage your grades.
For acquiring the relevant knowledge, do not rely only on handouts but also watch the course video lectures and read additional material available online or in any other mode.
- Your discussion must be based on logical facts.
- The GDB will open and close on above specified date and time. Please note that no grace day or extra time will be given for posting comments on GDB.
- Use the font style “Times New Roman” and font size “12”.
- Your answer should be relevant to the topic i.e. clear and concise.
- Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
- Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.
- You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.
- Obnoxious or ignoble answer should be strictly avoided.
- You cannot participate in the discussion after the due date via email.
- Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
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Note related to load shedding: Please be proactive
As you know that Post Mid-Term semester activities have started, and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.