Marketing-Oriented Pricing

Today, I want to talk about marketing-oriented pricing.

As we know, pricing is very important with the development of company. It build product features, price, advertising and other elements of marking around the product's set of consumers who are known as the target market. Marketing managers using market-oriented pricing to price the product at an ideal cost for the consumer and the business. Business managers must balance the consumers' desired price of the product with the companies financial needs. Research into needs of both the company and the target market can help create profitable price strategy.

I will analyze about the price strategies of one of the biggest company in my country, Vinamilk.

First of all, there are some factors which affect the price of Vinamilk:

-          The economic goals: Try to produce milk, butter, cheese and others good for health and reach the sustainable development.

-          Cost of product:

o   Investment in technology

o   Cost of inputs

o   Cost of sales

o   Reputation and product quality

o   Demand and consumer psychology dairy products

o   The price of competitors

Secondly, the price strategies of Vinamilk is:

1.      Price of Vinamilk is quite stable:

The product line	The number of kinds of each product line	Average price (VND)	Average price (euro)
Condensed	7	10.000	0,35
Milk	31	90.000	3,35
Nutritional powder	18	39.000	1,50
Fresh milk	33	12.000	0,45
Yogurt drink	8	9.000	0,35
Soy milk	4	5.000	0,20
Cheese	1	16.000	0,60

2.      Strategies  more expensive for better quality

3.      Besides that, they also unchanged the price but supply the high quality milk

4.      The policies on purchasing price of raw milk: areas with pasture, urbanization, good breeding conditions, but must be transported away from milk, the lower price. At the same time, Vinamilk always adjust seasonal milk price and milk price situation in the world. In addition, the company through price support for a sustainable model of development

The effectiveness:

Year	Revenue (billions VNĐ)	Profit(%)
2009	9.220	1.670
2010	14.428	3.137

Advertising Media

Nowadays, the competition between companies is more and more serious; the importance of advertising media is more and more enhanced. There are many ways to communicate with customers such as: newspaper and magazine advertising, television advertising, cinema advertising, outdoor and transportation advertising, radio advertising, Internet and social media, and loudspeaker advertising in store.

However, in Vietnam, television advertising and magazine advertising are the most popular ways. I will analysis Vinamilk advertising media_ one of the successful company in advertising products, invested its advertising budget in television_ to make clearly my opinion.

1. Firstly, I mention about Vinamilk television advertising

• It’s nearly 80% population in Vietnam watch TV every day.

• Television is one of the fastest and lowest contact price advertising.

• Their main product: children's nutrition powder, condensed milk, yogurt, milk, soy milk and fruit juice. Therefore, Vinamilk concerns with children and housewife, who watch TV very often.

-          For example:

2. Secondly, Vinamilk also invests in magazine and newspaper advertising:

• Almost older Vietnamese read newspaper and magazine every day.

• It’s quite cheap

-          For example:

3. Finally, the Internet is developed every day, and it’s a mistake if company doesn’t invest in this kind of media. Because of:

• The popular in younger Vietnamese’s life

• It’s available 24/7.

-          For example: uploading video in youtube, advertising in e-newspaper, opening Facebook page for its brand and then, post fun stories, fun clips about products…..

Lady Line

First of all, Lady Line always focuses on the target group, women over 40 years old.
Secondly, Lady Line emphasizes on the healthy, the body outside and the relaxation. Therefore, almost exercise is accompanied with relaxed music, and I think it's similar with Yoga.

From my viewpoint, the impressive  point in Lady Line marketing is the target marketing. They advertise their physiotherapies; exercises technologies and give consultant service. For example, they give the solution for women who just have a child and have trouble with fat belly.

Brand Name and Logo

Nowadays, when the brand is more and more important, Marketing department and leader of every company are more and more notice in their company’s logo and name.

However, creating name and logo isn’t easy.

1.Brand name must be:

• Easy to pronounce, recognize and remember: Tide, Surf, Gold Spot, Adidas, Nike are examples of such brand names.

• Easy to translate into foreign languages: Naturalizer,…

• Meaningful

• Distinctive: Fubu, Naturalizer, BMW…

• Adaptable to new products: Videocon is was good brand name for TVs and VCRs but when it is extended to refrigerators and washing machines, some of the sales appeal is lost. Hotline was a good name for gas stoves, but definitely not a suitable name for TVs.

• Registerable under the  laws of Trade Marks and Copyrights

  2. Brand logo must be:

•  Easy to recognize

BMW

•  Simple:

Adidas
IBM

•          Unique(impressive): 

Channel
Louis Vuitton
Lacoste

•  Timeless:

Coca Cola

• Meaningful and suggested something about product:

Starbucks
Unilever

• Able to use on a variety of media:
  

Nike on T-shirt
Nike on the wall