Tuesday, June 14, 2011

Price

At Lave', we go through the most strenuous steps to ensure our product is the finest on the market.  In doing so, we don't want only a select group of individuals to taste this extraordinary beverage, we want everyone with a mouth to taste heaven.  When you break down the pricing scale, Lave' falls under Competition-Based Pricing.
"Competition-based pricingSetting prices based on competitors’ strategies, prices, costs, and market offerings." (Marketing: An Introduction, Armstrong/Kotler, page 280)
This pricing throws us in the shark tank, competing with all the major vodka brands.
"For most purchases, consumers don’t have all the skill or information they need to figure out whether they are paying a good price. They don’t have the time, ability, or inclination to research different brands or stores, compare prices, and get the best deals." (Marketing: An Introduction, Armstrong/Kotler, page 294)
We want our product to be side by side with the leading competition.  We want to show the consumer the grade of alcohol their getting compared to what they're offered for the same price. This will cement into the consumers mind that you can buy exceptional quality, with average money.

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