You have been hired to be a consultant on pricing strategies for two different c

Question

You have been hired to be a consultant on pricing strategies for two different companies. Both of the companies have similar customer bases in that their customers fall into two well defined groups: college students and young well-paid professionals. The first company is a trendy bar. The bar is currently seeing many young well paid professionals as customers, but quite a bit fewer college students. The bar has run a marketing campaign to attract more college students, but that only caused a small increase in the number of those customers. The second company is an electronics store selling items such as iPods. This company is also currently seeing many young well-paid professionals as customers, but quite a bit fewer college students. The electronics store has also run a marketing campaign to attract more college students, but that also only caused a small increase in the number of those customers. Both of these companies want to know if they could make some changes in their pricing strategy to increase their sales to college students and thereby increase their overall profits. Prepare a recommendation for each company. Should your recommendations be the same for both companies? If not, what are the differences?

Explanation / Answer

For the trendy bar  many young well-paid professionals as customers, but quite a bit fewer college students are the customers.In order to increse the number of student customers bar should have a special strategy for students like If they buy one they can get one free and likely increse the tax so that the bar won't incur losses and increse their over all profit as the well paid youth will not be decresing .By this way bar can increase their student customers.

For the electronics store even  many young well-paid professionals as customers, but quite a bit fewer college students are the customers.So in this store the campaining should be done in such a way that the products should be available in such a way that they can be afforded ar the students should be given a chance of lower EMI so that their intrest increses if the store has low EMIs plan. The store can have over all profits .

I as a consultant to both companies I won't recommend the same strategies to both the firms because their way of work is entirely differernt.

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