Group work #2 Case Study: Millersville Lions Club e Millersville Lions Club had
ID: 1164999 • Letter: G
Question
Group work #2 Case Study: Millersville Lions Club e Millersville Lions Club had successfully operated a community swimming Th pool for ma the past opera pool. The club had also expanded the much larger region, opening up the membership to far more people ny decades. Memberships in the pool had been relatively stable for years and the Lions Club had been able to cover increased ting costs with only small increases in the membership fees to use the hip geographic area to include a five A survey was conducted of the pool membership to determine how they felt about the idea of a second pool on the site. They were also questioned as to how much they would be willing to spend to support the new addition. The results were mixed with one group, mostly swim team parents, highly supportive and willing to pay a substantial increase, and another group of about equal size who didn't feel the need and who were against any significant fee increase GW Reference: Marketing Management TASK Form a group of 3-5 students, consider the following questions, share your thoughts among the group and respond 1. How might the Millersville Lions Club pool make use of the concept of segmented pricing to improve upon their revenues? (4 Marks) What types of optional-product pricing might the Millersville Lions Club pool use to improve upon their revenues? 2. 4 Marks) 3. What types of discounts might the Millersville Lions Club offer to improve upon their revenues? (2 Mark)Explanation / Answer
1. Price segmentation means charging different prices to different peple for the same product, irrespective of the cost of productionand distribution. Now, here we can see 2 groups of people, first who are willing to pay an increased fees and second who are not willing to to. So, keeping that in mind, club should apply segmented pricing and charge more to the first group and less to the second group, which will substaintially incraese their revenue. 2. Optional product pricing means, setting a low cost for basic product and then earning profits from more costly accessories. Egat the club can do is, they can keep fee for swimming low and can earn profit frofit necessary accessories used for swimming. And thus can keep their profit marging higher. 3. To improve upon their revenues they can offer life time mebership in a low cost, even they can introduce referral bonus, they can also try providing free accessories for new joinings.
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