Assignment-3-Pricing-Strategy

Apr 30th, 2015
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Strayer University
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Pricing is a key element of the marketing mix. In order to evaluate the best pricing strategy for our business, we evaluated the dynamics of our marketplace, like our location, the target market and their willingness to pay as well as our product offering and what features differentiate us from the competition.

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Marketing Management MKT 500Strayer UniversityProfessor Shirley MclaughlinMay 15, 2011Determine and discuss a pricing strategy (Penetration or Skimming)Pricing is a key element of the marketing mix. In order to evaluate the best pricing strategy for our business, we evaluated the dynamics of our marketplace, like our location, the target market and their willingness to pay as well as our product offering and what features differentiate us from the competition. At TWO Chics our goal is to provide quality, great tasting, and healthy southern style cuisine at a reasonable price. We have a niche in the sit down dining segment of the restaurant industry and to gain brand recognition our prices will be slightly cheaper than other restaurants offering a comparable meal with meat and vegetables. TWO Chics will use a penetration pricing strategy which will be designed to get more customers to buy our product by charging a lower price to attract customers from our target market. While charging a lower price might result in a reduction of our profit margin, we are willing make this sacrifice to gain a faster entry into the marketplace and increase brand recognition. TWO Chics perfectly portioned healthy southern style entrees will be served with TWO sides and will cost on average $7-9 per plate. One size drinks can be purchased at $1.25 and our bite- size desserts, like red velvet cake and banana pudding will cost $1.50 each. Here are a few competitors and the a

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