Question-1
A leading company in the Qatari market for the production of dairy products, relies on
various pricing strategies. For example, the company manufactures a brand called "Active
milk" from organic cow's milk, focusing on the quality of this product by considering factors
such as organic nutrition and sustainable care for cows. The primary target audience for this
product is young children who have not yet started school. Additionally, the company follows
a different strategy when pricing "School milk" for elementary school students. The company
prices school milk after calculating costs such as rent, cow care expenses, employee salaries,
and the packaging in which the milk is filled. After calculating the costs of milk, packaging,
and labeling, the company adds a certain amount to ensure profitability.
The company also manufactures the "Wellness Yogurt" product in a way that differs from
competitors. This pricing reflects the company's commitment to offering healthy and natural
products, enhancing its position among competitors in the dairy market. The company prices
this product higher than competitors due to its distinctive quality. Additionally, the company
produces flavored milk, offering 5 different flavors at varying prices: chocolate, strawberry,
banana, mango, and honey. However, the company provides a special offer that includes all
flavors together (one package for each flavor) along with one bottle of Active milk at a lower
price than the individual prices combined.
Pricing Strategy Example from the Text
Used
Bundle Pricing
Above
the
Product line
pricing
Product bundle
pricing
Markup Pricing
Justification