Sample Essay


The price of the product, particularly the price compared to that of your competitors is а vital part of marketing. There are five possible pricing techniques:

  • Loss Leader Pricing
  • Penetration Pricing
  • Price Skimming
  • Differential Pricing
  • Cost-plus Pricing
                Sainsbury’s approach would appear to be ‘affordable quality’, however part of the reason for their loss in profits of late is due to Wal-Mart improving quality whilst maintaining lower prices than Sainsbury’s. Furthermore, Asda has maintained product differentiation by offering very low prices. А way for Sainsbury’s to attract customers attention would be to use the loss leader pricing strategy which lowers the price on а few key products. Once the customers then come to the stores to get the bargains, they will buy other products and thus stimulate interest in products in the maturity/decline stages of their life cycle.

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