Week 8 - 4X Beer Oral PDF

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Week 8 - 4X Beer Oral...

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In order for 4X to achieve success through exporting, an international pricing strategy will imperative for determining the optimum product price within the Indian market. Exporting comes with heavy operational and logistical costs, along with a c

With that being said, there are three pricing strategies we will be considering today: multipoint pricing,

Strategic pricing typically combines the benefits and innovations set by a product with the price sensitivities of consumers to develop flexible, executable and sustainable value-based strategies. With that being said, there are three particular strategies we will be considering today.

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India is predominately a hard spirits market but recent attitude changes have popularised beer among young adults in major cities like Mumbai, Delhi, and Bangalore, with a steady 9.90% growth in the beer industry over the past decade.

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In an attempt to penetrate into a weak market, 4X will initially adopt a predatory pricing strategy. This strategy will attract and benefit consumers through low cost products and discourage other competitors from entering the market.

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As 4X is well established within Australia, it is confident that losses incurred through the Indian market due to price lowering can be subsidized to maintain profitability for the company as a whole.

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As exporting comes with heavy operational and logistical costs, it is recommended that 4X eventually transition into an experience curve pricing strategy. Where 4X will still maintain a low product price however for the objective of gaining market share and achieve global sales volume. The long term goal being that costs linked to product creation will ultimately decrease as production experience increases....