MARKETING - CASE STUDY : MARKETING - CASE STUDY SUBMITTED BY- RISHAB GOENKA ROLL 26 AND SONA SHYAMSUKHA ROLL 32 COMPANY HISTORY and AIMS : COMPANY HISTORY and AIMS For over 14 years, Parcelforce Worldwide has provided a vital link for British businesses needing to send express shipments internationally and in the UK.
Recent years have seen enormous changes in the market place and Parcelforce Worldwide has responded with major investments in technology and, in 2000, the opening of an impressive operational hub in Coventry. They aim to offer all their customers with high quality and fairly priced services, no matter their size.
delivering a commitment.
to meet and achieve the customers expectations every step of the way.
always thinking ahead for their customers. Describe the different types of pricing strategies. : Describe the different types of pricing strategies. The pricing strategy adopted by Parcelforce Worldwide is to differentiate the price of the product on the basis of speed and value for money. It offers three choices to the customers – speed, money or balance between speed and money. If a customer wants speed (urgent parcels) then the cost is high. Similarly, if the customer`s parcel is non urgent then the cost is low. The price is mid-ranged if the customer`s parcel is in between urgent and non urgent.
Differential pricing – this gives different prices for different groups or types of customers. Parcelforce Worldwide is able to negotiate prices with business customers (B2B and B2C) based on their exact sending profile (for example, volumes, weights, destinations).
Price leadership – where a market leader sets market price. In the non-urgent market, Parcelforce Worldwide is looking to achieve some degree of price leadership by finding lower cost international delivery models and passing some of this cost saving to its customers. Slide 4: Market penetration – pricing may be low in order to gain a foothold in a new market or with a new product. To take market share with its new Express service, Parcelforce Worldwide needed to price keenly.
Competitive pricing – where price matches or undercuts those of competitors. This could, for example, increase market share with Parcelforce Worldwide’s new Priority service. Slide 5: Destroyer pricing: Where the business sets a very low price to drive competitors out of business. This is anti-competitive.
Skimming: Selling a new or premium product at an initially high price to gain a high profit. Appropriate if the product is unique, has a premium image or incurred huge investment costs.
Psychological point pricing: A marketing practice based on the theory that certain prices have a psychological impact, for example, £9.99 is more attractive than £10. Explain the difference between primary and secondary research. Why would a businessuse both? : Explain the difference between primary and secondary research. Why would a businessuse both? Secondary Research Helpful when one is considering extending their business into new markets or adding new services or product lines.
This type of research is based on information gleaned from studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations.
Local libraries, web, books and business publications are great sources for this research.
Although secondary research is less expensive than primary research, it's not as accurate, or as useful, as specific and customized research. For instance, secondary research will tell you how much teenagers spent last year on basketball shoes, but not how much they're willing to pay for the shoe design your company has in mind. Slide 7: Primary Research It is tailored to a company's particular needs. By customizing tried-and-true approaches — focus groups, surveys, field tests, interviews or observation — ways one can gain information about their target market. For example, you can investigate an issue specific to your business, get feedback about your Web site, assess demand for a proposed service, gauge response to various packaging options, and find out how much consumers will shell out for a new product.
Primary research delivers more specific results than secondary research, which is an especially important consideration when you're launching a new product or service. In addition, primary research is usually based on statistical methodologies that involve sampling as little as 1 percent of a target market. This tiny sample can give an accurate representation of a particular market.
However it is a more expensive method than secondary research. Why should we use both secondary and primary research? : Why should we use both secondary and primary research? Savvy entrepreneurs will do secondary research first and then conduct primary research. For example, the owner of a video-rental shop would want to know all about a neighborhood before opening a new store there. Using information gleaned from secondary sources, the owner can leard all kinds of demographic data, including detailed income data and spending patterns.
They can then send out a questionnaire to a sampling of households to find out what kinds of movies people like to rent. That primary-research technique will help when it comes time to stock the store with the latest Hollywood releases.
Secondary research lays the groundwork and primary research helps fill in the gaps. By using both types of market research, business owners get a well-rounded view of their market and have the information they need to make important business decisions.