Branding, Pricing, and Distribution Essay Example | Topics and Well Written Essays - 1000 words

Branding, Pricing, and Distribution - Essay Example As discussed in the previous paper, the company has retail stores in the United States and Australia. Considering the current position of the Trendy Fashionista, it is better for the company to develop a unique product branding strategy to market its new light weight traveler bags. According to the unique branding strategy, only one product manufactured by the company is marketed under a particular brand. When several products are marketed under a brand (corporate branding strategy), the brand image would be affected if any of those products fails to meet quality standards or performs poorly. The unique branding strategy would prevent this situation and assist the Trendy Fashionista to promote its new product lines effectively. However the company may adopt a range branding strategy, which is a mixture of unique branding strategy and corporate branding strategy while operating in a global market context. Pricing Strategy It is a great challenge for the Trendy Fashionista to design a pricing strategy for its newly planned light weight bags because this business concept is new and therefore market uncertainty is high. In this context, it is advisable for the company to practice the price skimming strategy to deal with brand positioning effectively. Under the price skimming strategy, the marketer sets relatively higher prices for his products initially and lowers the price over time. At the initial stages of the product launching, this pricing strategy would assist the Trendy Fashionista to justify its superior product quality. In addition, this optimal pricing strategy can benefit the organization to recover its sunk costs quickly before the market competition becomes intense. As Lamb, Hair, and McDaniel (2008) point out, the major objective of price skimming strategy is to capture the consumer surplus. If this pricing strategy is executed properly, then no customer will pay less than what they are actually willing to pay (p. 600). Connection between Pricing Stra tegy and Branding Strategy The Trendy Fashionista’s price skimming strategy really supports its branding strategy. It is clear that only one product item is marketed under a brand under the unique branding strategy. While the firm adopts this branding strategy to promote its newly planned light weight bags, the customer would obtain a feeling that the company gives specific focus to this product and therefore the product will be of superior quality. In other words, this policy can assist the organization to achieve a reputed brand image and thereby make the brand easily recognizable in the market. Customer between the age of 20 and 35 are fashion-minded and hence they would be willing to pay higher prices for top quality products. In short, the price skimming strategy can benefit the organization to take greater advantages of the unique branding and hence to promote its business interests. Distribution Channel Analysis The Trendy Fashionista’s distribution channels inc lude wholesalers, distributors, retailers, catalogue sales, personal sales, and over the phone sales. Currently, the company has limited manufacturing capabilities and therefore the firm has to largely depend on offshore manufacturers. In order to address the issue, the organization plans to extend its manufacturing facilities through developing its own production plants. Undoubtedly, this practice would