Strategy For New Products Or Services Of Technology – Pricing Policy Of Elexo Company

Pricing policy of Elexo Company

Discuss about the Strategy For New Products Or Services Of Technology.

The automobile industry in New Zealand is based on the high supplies which has led to the highest ratios of car ownership. The distributors of cars in the market are all related to this industry for many years. The Elexo Company has planned to launch its solar powered car in the market of New Zealand. The car that is being launched by the company is mainly based on the progressive thinking of the owners who are aware of the lack of enough energy based resources in the future. The future demands of the public can thereby be fulfilled with the help of solar powered electric cars which can reduce the impact on the environment. The prices that have been decided for these solar powered cars is thereby high as compared to the ordinary cars (Zhang, Wang, & Ren, 2014). The use of the solar powered cars is however much easier and they are affordable as well. The large investment that is to be made by the customers on this type of car is for one-time as the cars will be providing its benefits for the rest of the time. The charge that is provided to the cars with the help of solar energy can help in using it for a long time. The requirement of fuel for the car is totally eliminated which can further help in increasing the efficiency in the industry (Wu, Deng, & Jiang, 2018).

The pricing strategy that has been implemented by Elexo Company is termed as the premium pricing. The facilities that are offered by the car are of high quality which can help in providing benefits to the company and the environment as a whole. The company will also be able to create a perception based on the value of the car that is being launched in the market. The solar powered car has high value in the market which can help in influencing the ways by which the customers are able to perceive the brand. The benefits that are provided by the company are also based on the high value of the products. Elexo thereby needs to decide the price that it wishes to set for the products based on the factors that are that can affect the future operations of the company (Kaiser, 2015).  The marketing and promotional efforts that will be designed by Elexo is also based on the premium quality of the products. The presentation of products is also an important factor that affects the premium price and quality. The price that has been decided for the solar powered electric car of Elexo company is around 15,000 New Zealand Dollars. The price has been calculated based on the costs that are related to the production and the promotional activities as well. The price of the electric car of Elexo is thereby of the premium range. The promotional activities of the company are an important factor that add to the total costs related to the production. The total price of the car is based on the costs of the premium priced product of Elexo Company which is the solar powered electric car (Smith, 2016).

Premium Pricing Strategy of Elexo Company

The promotion forms an essential aspect of the marketing mix (Hollensen, 2015). The promotion plays a key role in helping the different customers to be aware of the particular product in the domain of business. The right kind of promotion helps the company in achieving its goals and assists the firm in gaining success in the long run as well (Foxall, 2014). The company Elexo will be required to use a marketing promotional strategy which shall go a long way in helping the firm to become popular in New Zealand. The use of the right kind of promotion tool will go a long way in helping the firm to achieve success and will guide the firm to be able to become a global leader in this context. The different mediums which can be used by the company are as follows:

The sponsorship technique of promotional mix assists the organization in making their product and offering highly popular. The company in this method, goes ahead to ensure that the company is associated with an event and thereby through this it sponsors local teams, fairs, tournaments and other facilities. Other than that, various charitable events, local sporting teams sponsorship can be used (Baker & Saren, 2016). An amount of 45000$ would be required for the same. The main aim is to get the company`s name popular and be able to view it positively.  In order to ensure that the car becomes extremely popular the company has planned that the Tiki Taane festival will be sponsored by it. The musician is a world famous musician and will be performing in a festival in Queensland. Hence, this festival will be sponsored by the solar car company which will then go a long way in helping the given company to gain popularity and create a positive image. The Sponsorship will help companies to put up banners of the car and the brand.

Lucky draw is another popular technique of promotion which is generally used by companies in order to gain the attention of the larger crowds. In a lucky draw contest, the company makes use of the lucky draw mechanism in order to make different people participate in the contest and the one who wins the contest can be awarded with a particular prize. In the case of the solar car, the company can award the car itself to the winners of the contest (Armstrong, Kotler, Harker, & Brennan, 2015). An amount of 990$ would be required for the same. The participants can be provided with certain quiz questions which can then initiate interest in the product as well. A test drive can be provided along with the lucky draw contest entry.

Promotion

 The companies also tend to use television promotion as a popular technique to be able to get into the customer preference. Television advertisement is considered to be one of the most popular techniques of advertising. The company can issue their advertisements in popular channels like automobiles, sports and lifestyle which will be able to cater to the needs of the right kind of crowd for the given company. An amount of 50000$ would be required for the same,

The company can also use newspaper magazine and advertisement as an effective technique in order to be able to ensure that maximum readers can become aware of the offering as being made by the company. The newspaper which will be used to make the advertisement is the New Zealand Herald (Gronroos, 2016). The newspaper brand is one of the most popular brands and hence it has been chosen as a medium. For this purpose, an amount of $3000 will be required.

 The company can also make use of the medium of advertising on Social Media websites. For this reason, a page will be created and different potential customers and businesses will be sent an invite for the same. For the social media advertising an amount of 8000$ will be required. A budget for the promotional mix has been provided in the Appendix.

The billboards advertisement is an effective method of advertising as it helps to gain the attention of the target audience who will be probably traveling on the road. The size of the billboards are quite large and can be placed at different areas in a city which can then enable coverage throughout the city (billboardsnz.co.nz, 2018). For the Solar Car Company, Elexo it will be important that the company advertises its products in the city of Auckland using billboard advertisement. Hence, stated below are the different areas that the company can use for setting up the billboards and the costs associated with the same has been stated.

Areas	Costs associated
Auckland Central Business Unit	$3500
Ponsonby	$3000
Parnell	$3000
Howick	$3000
New Market	$3500
Devonport	$3500
North shore	$2000
Manakau	$1500
Franklin District	$1000
Hibiscus Coast	$1400 (bluelinemedia.com, 2018)

The different costs have been arrived at after analysing the area and its relative importance. The first six areas which have been listed are posh areas and thus the pricing of are thus quite high (at.govt.nz, 2018). The given rates are monthly in nature. The rest of the areas are located in suburbs and thus not that expensive in nature. The prices have been arrived at after determining the rate in that given area.

Sponsorship

The bus stop advertising are also taken to be a popular source of advertisement and is used by different companies as a major mix. The bus stop advertisement is moderately expensive in nature and the list of 10 different bus stops where the solar car company have been given as follows:

Areas	Costs associated
Wellesley Street West	$2500
Victoria Street	$2500
Queen street	$4000
Hobson Street	$1700
Victoria Street west	$600
Central Police station	$700
Greys Avenue	$750
Wakefield Street	$600
Pitt street	$800
Commerce street	$150

These rates have been arrived at depending on the different areas and their relative crowd (performancemedia.co.nz, 2018). The first 7 areas are very populated and hence, the rates are quite high whereas for the rest 3, located at the suburbs and not so crowded locations, the price is moderate.

The company has chosen the Place New Market and Manakau in Auckland in New Zealand because the given place has a large population and comprises of a crowd which is greatly interested in the domain of using environmental friendly goods. Furthermore, there are various colleges and schools in the area, whose interest can be chosen for the same.

References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.

at.govt.nz. (2018). govt.nz. Retrieved from at.govt.nz: https://at.govt.nz/bus-train-ferry/timetables/find-my-stop-or-station-on-a-map/

Baker, M., & Saren, M. e. (2016). Marketing theory: a student text. Sage.

billboardsnz.co.nz. (2018). billboardsnz.co.nz. Retrieved from https://www.billboardsnz.co.nz/billboards-auckland

bluelinemedia.com. (2018). bluelinemedia.com. Retrieved from https://www.bluelinemedia.com/bus-advertising

Deelicious. (2018). Deelicious. . Retrieved from https://www.deelicious.my/2017/07/

Foxall, G. (2014). Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.

Gronroos, C. (2016). Service Management & Marketing: Managing the Service Profit Logic. John Wiley & Sons.

Hollensen, S. (2015). Marketing management: A relationship approach. . Pearson Education Limited.

Kaiser, J. &. (2015). Antecedents To Pricing Strategy: Factors Driving The Selection Of Pricing Strategy For New Products or Services Of Technology-Based New Ventures. In Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference, 117.

OurClipart. (2018). online sponsorship page – OurClipart. Retrieved from https://www.ourclipart.com/clipart/online%20sponsorship%20page/

performancemedia.co.nz. (2018). performancemedia. Retrieved from https://www.performancemedia.co.nz/outdoor.html

Smith, T. J. (2016). The Value?Based Pricing Framework for Getting Pricing Done Right. Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies. 

Staff, W. (2018). Spectrum shifts to all-digital: What you need to know. Retrieved from https://www.wkbw.com/news/spectrum-shifts-to-all-digital-what-you-need-to-know

Team, R. F. (2018). Riccardo Ferrari Team. Retrieved from https://www.facebook.com/FerrariMarketingTeam/posts/1379691128742542:0

Wu, L., Deng, S., & Jiang, X. (2018). Sampling and pricing strategy under competition. . Omega.

Zealands, L. N. (2018). latest news 556584 – seafoodnet.info. . Retrieved from https://seafoodnet.info/?k=Lifestyle++NZ+Herald++New+Zealands+latest+news

Zhang, C. T., Wang, H. X., & Ren, M. L. (2014). Research on pricing and coordination strategy of green supply chain under hybrid production mode. . Computers & Industrial Engineering, 72, 24-31.