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The impact of product pricing on market penetration in retailing industry: A case study of Tesco

Harvard, 2500 Words

Table of Contents

1       Introduction

1.1        Rationale of the Study

1.2        Research Aim and Objective:

1.3        Research Questions:

2       Literature Review:

2.1        Understanding pricing:

2.2        How company prices:

2.3        Cost plus Pricing:

2.4        Demand Oriented Pricing:

2.5        Competitor Based Pricing:

2.6        Value Based Pricing:

2.7        Pricing Strategy:

2.8        New Product Pricing strategy:

2.9        Market Skimming Pricing:

2.10     Market Penetration Pricing:

2.11     Framework:

3       3. Research Design and Methodology:

3.1        Research Philosophy:

3.2        Type of Investigation:

3.3        Research Method:

3.4        Data Collection Technique:

3.5        Primary Data Collection:

3.6        Secondary Data Collection:

3.7        Data Analysis:

3.8        Reliability and Validity:

3.9        Ethical Consideration:

3.10     Research Limitation:

3.11     Timetable:

4       4. Conclusion:

5       Reference:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1        Introduction

Market penetration is a strategy taken by marketer to enter in the market with new products that attract customers for low pricing and maximum sales volume. This is all about the measurement of the amount of sales volume of product and services (Phillips, Doole and Lowe, 1994). Generally a newly formed business wants to enter in the market with the market penetration strategy. So, this is both measurement and a strategy (Clifton, 2012). Hence, pricing strategy is most important part of business.  Organization takes different types of pricing strategy to capture customers’ attention and wants maximum sales of product and service.

Tesco PLC is a multinational retail company founded in 1919 operates in more than 12 countries, across the world including Asia and Europe (Cadogan, 2009). It mainly operates its business in Europe and becomes a market leader. It is third largest grocery company in Europe in terms of profits. Tesco involves different types of businesses such as financial business, Telecom businesses and Petrol businesses. Tesco maintains a strong supply chain management. Tesco collects raw materials from selected sources and make these to finished goods and offers to the customers at cheaper rate of price. Tesco has strong strategically pricing method to attract customer concentration (Crane, 2008). Apart from this, Tesco offers quality and good product to satisfy them. That’s why Tesco concentrates on penetrating pricing.

As the competitive rivals in grocery sector is growing day by day, Tesco thinks to keep its position in the market as usual. Market penetrating pricing is one of them strategy to keep them in top in the market. However, this report will demonstrate on the impact of product pricing on market penetration in retail industry.