Paul's pricing strategy

Résumé du document

Paul is a famous brand in France and is now developing in many other countries too. It is known in France as a quality product. It is interesting to analyze their pricing strategy as it defines their position on the market, in France as well as in the foreign countries where they are already present. Paul follows a precise marketing strategy. Its objective is to provide the customers with quality products in an old fashion décor that reminds people of the old time. With respect to the price strategy, the company has to ask itself many questions: how much would the client pay? What image do we want to convey? Which customers do we want to reach? Indeed, the price is only one of the many ways in which the company can show its strategy.

Extraits

[...] They own 47 franchised shops abroad providing the same services as in France. Indeed, it has the same conduct line for all the countries as we can recognize a Paul shop anywhere we go. They have the same specifications in all their store as you can see the same design of the shops so that they can be easily identified, the employees are wearing the same costumes, the same “know and the raw materials remain imported from the same producers in France . [...]

[...] This price policy is targeting the same precise market as in the other countries: the middle to upper classes. We are not going to have a promotion price, which means that we will not conduct a Market penetration policy, for the launch of the bakery in Hungary as we want to keep a high brand image. Indicative bibliography Profitable Pricing Strategies Eric G. Mitchell (1985) Faire accepter son prix à ses clients : le pricing power Pascal Py (2007) A behavioral approach to asset pricing Hersh Shefrin (2008) Pricing (Marketing Science Institute Relevant Knowledge Series) Russell S. [...]

[...] Therefore, we can say that they are using Prestige Pricing Strategy. This strategy consists in having high prices in order to give the customer an image of a quality company and provide the product a high status. This strategy gives the consumer a motivation to buy the product as they will know that the brand is a reference on the market. As it is expanding to the rest of the world, we can also analyze its pricing strategy in the foreigner countries. [...]

[...] It is interesting to analyze their pricing strategy that defines their position on the market, in France as well as in the foreigner countries where they are already present. Paul is leading a precise marketing strategy. Its objective is to provide the customers with quality products in an old fashion décor that reminds people of the old time. In the price strategy the company has to ask itself many questions: how much the client would pay? What image we want to give? Which customers we want to reach? Indeed, the price is one of the many ways the company can show its strategy. [...]