I think that it is brilliant that Barnes & Noble include Starbucks in their stores. Like Haley, I enjoy drinking a warm beverage while curled up reading a book. You see a lot of different businesses having relationships with one another. For example, on West Street in Keene there is an Irving gas station and inside it is a Dunkin Donuts. That way if you get hungry while you are getting gas you can go grab a quick cup of coffee or a donut. Also in the Keene Target there is a Starbucks inside that if you get hungry or thirsty while shopping you can grab a cup of coffee or a treat. It is smart that businesses build relationships with one another because in the long run they both win from the situation. I can pick up my laundry detergent from Target and get a cup of coffee and a cookie while I head out the door. Especially if a parent brings a kid with them shopping and they want a cup of hot cocoa they will beg their parents until they give in and buy them something from Starbucks, brilliant!
Do you ever find yourself giving into that temptation? That if you go to Target for a bar of soup or a CD that you end up purchasing a cup of coffee at Starbucks as well?
Sunday, March 24, 2013
Pricing Strategies- Walmart
Have you ever wondered through a Walmart before? Ever wonder why and how the company does so well yet keeps their prices so low? Recently I was watching a program on Walmart on MSNBC and read an article from the Business Insider regarding Walmart's pricing strategy. Whenever I walk through a Walmart I see big signs 8.77 or 14.38 and I wonder why are the prices not like everyone else? 8.99 or 14.99? Well, that is where Walmart grabs the consumers attention in their prices. Their motto speaks for itself "Everyday low prices." That is what the company strives for and by cutting prices they help consumers save a few extra cents and make them appreciate Walmart's low price strategy. In the Business Insider article it said that due to the current recession many consumers have had no choice but to cut back on their spending habits and save a little extra cash wherever they can. By keeping prices low, low, low Walmart sales are up and more and more consumers have loyalty to the big box chain. "Walmart taught us all in the '80s, when you get a steady sales process, What happens? You can manage the business better. Walmart knows that by pricing lower they will get more consumers. Wouldn't you rather buy a television for $144.44 then $199.99 I know that I would. Any chance I get to save money I know I cease that opportunity. I feel as though by Walmart branding themselves as a place to shop with everyday low prices is a brilliant marketing tactic and it is truly what makes them so successful, and that is certainly what distinguishes them from their competitors.
How do you feel about Walmart's pricing strategy? Do you think that it is clever?
Article Source: http://www.businessinsider.com/why-walmart-can-pull-off-everyday-low-prices-while-everyone-else-keeps-failing-2012-9
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