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Saturday, August 31, 2019
Pricing strategy Essay
Home depot is a store dealing with home appliances and other household consumables. I will look at the pricing strategy of refrigerators. Most prices of different brands of refrigerators are set to match the prices of their competitors. This is because mostly the competitors are operating in the same environment. it is essential to offer better quality brands with the same price as competitors. However when setting the price, the objective is to ensure profitability of the firm is taken care by the price set. The profit firm must incorporate capital requirements and the associated gains that cover the expenses of the organization. Always the profit considered in price setting is equals to price less cost of sales. While capital gains is equivalent the current assets and fixed assets running costs.            In choosing the target, market for refrigerator is made during the construction of sores. However the in which they are operating attracts the customers. Take an example of the New York most people have excess disposable income to spend and there are utilities that support the refrigerator in almost all homes. The company has reported that they have high expectation in the stead rise through to 2025 for product. Another important factor in the increase of consumers are the aging population with large pensions and young business executives with more excessive funds. In fact, this two groups forms an important consumer segment of home depot refrigerators. The customer has carried the consumer assessment they have adapted market oriented determination and differential.  References            Schaik J.L., (2002); The Task of Marketing Management; J.L. van Schaik (Pity) ltd
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