UNIT 5 Pricing and Sales Promotion PDF

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Price is perhaps the most important element of the 4Ps of marketing because it is the only one that generates revenue. American Marketing Association (AMA) suggested that sales promotion is media and nonmedia marketing pressure which organizations apply for a predetermined, limited period of time to...

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UNIT 5: Pricing and Sales Promotion

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Adika Car Rental & Auto Shop Plc University of the People BUS5112: Marketing Management-AY2022-T1 Dr. Nam Phuong Le October 5, 2021 Oct.05.2021

UNIT 5: Pricing and Sales Promotion

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Assume that you are a sales consultant for a local product or service. Prepare an analysis for the company and address the following: 1. Provide a brief background of the company and mention the major markets. 2. What are the striking benefits, as mentioned in the study for marketing these products or services to consumers? 3. Briefly describe the company's marketing strategy model. 4. What other product-pricing strategies, if any, would you recommend to maximize profit in the short and long-term? 1. Provide a brief background of the company and mention the major markets. Adika Car Rental and auto shop Plc is a business undertaking company established in November 2004 by two Ethiopian shareholders with initial paid up capital of Birr 25,000,000.00 (Twenty Five million) during that time dollar exchange equivalent to 3,125,000 (Three Million and One Hundred Twenty Five Thousand). Adika offers a bouquet of car rental and allied services to meet the specific needs of our customer portfolio. 1. Short Term Rentals: Include daily, weekly, monthly and weekend rentals at attractive rates for Individual who can afford for our cars and Corporate clients. 2. Long Term Lease: Flexible options ranging from 1 to 5 years with brand new vehicles as per customer's choice and preference at competitive rates. 3. School Transportation & Busing: Adika provides safe and reliable School Transportation, City & Leisure Tours, Staff Transportation and Corporate Travel with a well-maintained fleet of 15 & 30 seats minivans/buses and 48 seats luxury coaches. 4. Limousine & Chauffeur Service: One of the finest limousine service providers in Ethiopia, Limousine offers ‘as directed’ chauffeur services, Hotel/Airport transfers, and City Tours. Hummer Limousine is proud of having chauffeured some of the Ethiopian’s renowned celebrities from the music and entertainment genre. 5. Garage and Workshop Services: Safarian, are the in-house workshops operated by Adika with mechanical, electrical, body shop and painting facility catering to Adika’s fleet as well as non-Adika customers

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offering workshop solutions under one roof. The workshop is equipped with modern machinery and a team of highly skilled and experienced staff, trained in Health and Safety standards, offer round the clock accident and break down assistance. As I have mentioned above the company’s major market is large companies who may need to rent vehicles for their business trips, to provide local transportation to their business associates who may be coming into town for meetings, to transfer display equipment for local trade shows, and to cater to any other transportation need. 2. What are the striking benefits, as mentioned in the study for marketing these products or services to consumers? Adika has the following value proposition 

Diverse range of vehicles – Compact, Standard, Full Size Saloon cars, MPV, SUV, 4x4’s, 7 Seater and Commercial vehicles

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Comprehensive range of services – Short Term hire, Long Term lease, Bus Services, Chauffeur and Limousine Services, Airport & City Transfers, Garage services.

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Uniformed multilingual chauffeurs.

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Online enquiries and reservations.

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24x7 customer service and breakdown assistance.

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Service Center for maintenance and accident repairs

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Full comprehensive insurance coverage with.

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Total transport solution provider and immediate replacement in case of accident.

3. Briefly describe the company's marketing strategy model. Adika’s marketing strategy comprises of 3 C's, i.e., Cost, Customer, and Competitor and as car rental businesses Adika have seen rapid economic growth due to the marketing strategies, Adika possesses for marketing through the online medium as well as offline. Adika uses online marketing strategies to target the right audience. Besides online marketing, Adika's effective offline marketing strategies are also found to be beneficial. Customer: The following are Adika’s customer segments: airport customers, off-airport customers, car leasing, car sharing, or in simple word Adika segmented into B2C & B2B.

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Competitor: Currently, the company is facing major competition with large companies like direct and indirect competitor. Adika identified the competitive analysis into the indirect and direct competitors the business faces and then the company focuses on the latter. Cost: The low price of the product can reduce the credibility of the product and impact its profitability, whereas a high price might only attract high-end consumers, and Adika focuses on the latter. 4. What other product-pricing strategies, if any, would you recommend to maximize profit in the short and long-term? A price maximization strategy aims to make pricing decisions that generate the highest profits for the company. Price is a highly valuable part for a client while purchasing a product. Additionally, an effective price composition can have an intense effect on the success of the business. Currently Adika is at the growth stage and I would recommend competitor-based pricing and at the maturity phase it is the best time for Adika to make the most money because they will have plenty of information about the marketplace and the production costs are no longer an issue.

Conclusion Adika is a pioneer in Ethiopian market more specifically in meter taxi that gives the company an added advantage. Adika offers from short term to long term rental services along with garage service Adika’s marketing strategy comprises of 3C's.i.e., Competitor, Cost, and Customer

UNIT 5: Pricing and Sales Promotion

Reference Adika Company Profile. Retrieved. October 5, 2021 from https://adikatour.com/ Principles of marketing. (2015). University of Minnesota Libraries Publishing. https://doi.org/10.24926/8668.1901 (Original work published 2010)

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