Pricing Policies for New Products Free-Samples for Students

Question: Discuss about the Pinatex a non-woven textile Product. Answer: Introduce Pinatex is a non-woven textile product. This product is made from pineapple leaves. This product has evolved over the last seven years. Waste plant fibers are the key materials used in the production of this product. This product is developed by Ananas Anam. Pinatex is one of the by-products got from a pineapple harvest. In the production of Pinatex, there is no need for extra land, there is no need for fertilizers. This is because this product is purely a by-product of pineapple harvest. As such it comes at no extra cost. Exporting this product to China is a good option given that this particular product is not yet introduced into China. Besides, China has a potential market for this particular product. Market Selection And Entry Strategy The Chinese market is very unique nation. These market is very unique given that it operates differently compared to other markers across the globe. In China, the people normally have their own values according to Davies et al (2011), they have their own attitudes and most importantly a different world perspective. The Chinese market has its own way of operations. In addition to this, the Chinese market is one of the largest markets that has not received Pinatex. It has a large customer base and as such can be a good source of revenue. Given the uniqueness of this particular market it is important that a good entry strategy is put in place. Pinatex can build a big brand name in the Chinese market. However this will require three very important components. These three components can help in a new entrant. This can help Pinatex in filling void in the market. This three components are as illustrated below. Focusing on consumer impact This is a very important component for new entrants. Pinatex should emphasize on looking at this component. It is the end user of the Pinatex product that will decide the destiny of Pinatex in China - its new market. The introduction of the brand will depend largely on the customers and therefore it is important to make a good impression. First impression is very important when entering the new Chinese market. It is essential to focus more on quality delivery and consistency (Doherty, 2016). Allow for customization It is important for Pinatex to provide the opportunity for its customers in the new market with customization options. This customization can bring about significant growth in the event that this is implemented successfully. The business model ought to be built exclusively around the customer longing for personalization (Dean, 2017). In many occasions, the interest in new companies entering into new markets is majorly driven by the quality of products that are customized according to Ellis, (2016, p. 444). This are products that the organization is able to deliver to the customers more consistently and very quickly. It is therefore essential for Pinatex meet their customers demands by increasing their offers to meet customer customization demands. Predictability Predictability is vital if a brand is gain ground in a new market. Customers require business that can be consistent and predictable in their dealings. The success or failure of a brand depends on consistently especially in unique and dynamic markets such as the Chinese market. The reason why customers seek known brand in the market is because of consistency and the ability to provide uniform experience. In order for Pinatex to effectively meet day to day expectations of large markets such as the Chinese market it is important to streamline operations in such a manner that they inspire confidence among the customers. This is the only sure way one can meet high expectations of larger markets such as China according to (Chrisman Hofer, 2015) The business may need to build an infrastructure that is very simple in order to achieve predictability. The infrastructure should be in such a manner that one location mirrors down to the others. However it is important to note that with the cust omization component above, predictability can be a little bit tasking. However it is possible to achieve if a good plan is put in place. (Omar et al, 2009), stresses the fact that predictability and consistency are the key factors for new business entering new markets. By implementing measure that lean towards predictability and control, a business ensures that there is efficiency. By delivering on these three points, a business is able to satisfy its clients and gain a larger market share in a new market more efficiently and steadily. An outstanding business model is what can guarantee that customers will be loyal. Pricing Strategy Pricing strategy is essential for launching a new business into a new market. Coming up with the right price is essential. Pricing is very important given that it is a very productive and vital marketing tool. The price that Pinatex will choose to in the process of entering the new market will determine the reaction of the customers and this will make or break the business. It is also the first impression that a business gives customers and therefore forms the platform upon which customers can judge the business. The long term and the short term goals are essential in setting the price. Long-Term Premium Since Pinatex is the fashion industry, it is important to use the approach of long term premium pricing. This is because in this industry, the customers are people who wants quality products. As such they are more concerned about the product quality and an outstanding service delivery more than anything else. Even though skimming and penetration pricing have been the two most applied entry pricing methods, it is important to note that the Chinese market is unique and given the target audience are often aggressive people, who are mainly concerned with quality, then it follows that premium pricing is most appropriate pricing strategy to be used in this kind of scenario to launch high prices early. This is because the company (Pinatex) hopes to maintain these prices at such levels. Beside this particular market is large enough to sustain Pinatex (Hennart, 2009). Promotion Strategy Offering incentives with targeted landing pages The use of incentives and targeted landing pages is one of the best ways in which Pinatex can promote its brand in China. By creating two different landing pages, the business increase leads. This landing pages help in creating conversation and enables the product to be the talk of the town in various forums. Incentives are very important in that they encourage customers to participate more in using the product. Using social media The use of social media in promoting the product is very important. In order to reach the huge Chinese population it is important for Pinatex to employ the use of social media. This is because the use of social media is most often cheaper compared to any other means of promotion. The Chinese population is largely connected. The internet connection in china is one of the worlds best and as such using social media for promotional purposes is very important (Chen, Kor, Mahoney Tan, 2017). Distribution Strategy Direct strategy It is important for Pinatex to distribute its products directly to the end users. This way it will be able to customize its market entry strategy. This strategy can be customized to mirror the prevailing market conditions. Pinatex can then be able to quickly make adjustments whenever necessary depending on the market conditions faced. By this method, Pinatex can effectively eliminate middle men who may bring about high cost of operations. Through direct distribution methods, Pinatex will be responsible for marketing its products, doing its own market research, customer and sales services among others. It can also operate an online store since many people operated online in todays business environment (Chung Enderwick, 2011). Competitive Strategy A competitive strategy is a companys long term plan for realizing its competitive advantage. In order for Pinatex to outdo its competitors it has to use the best competitive strategy in the Chinese market. Choice of competitive strategy must have a well thought out action plans to withstand the pressures in the competitive market. The best strategy for Pinatex to use is the differentiation strategy. This is because Pinatex products are unique. This strategy will help Pinatex to come up with its own competitive advantage for marketing its unique products. These products are unique compared to what other competitors have in the Chinese market. This strategy may involve some costs since Pinatex will have to do its own research. However it is worth the cost given that it will lower the sensitivity associated with the prices while increasing brand loyalty. Conclusion Make a successful entry into a new market can be a challenge to many business across the globe. However with proper research and planning this exercise can very productive. It is important that appropriate study are carried out in order to enable expatriates to understand their new market effectively. A market entry strategy is very important as it maps out how one is to sell and distribute products to its customers among others. Only proper well thought out strategies can bring in revenue (Singh, Sandhu, 2017). Works Cited Dean, J. (2017). Pricing Policies for New Products. Harvard Business Review. 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