The pricing strategy for Smartbot
The pricing strategy for Smartbot in international market will be different than its local pricing strategy.In US and other European countries of the worlds, Wal-Mart is considered as a company that caters all sorts of income groups’ especially low income strata.But in Asian countries Wal mart is not the least expensive store chain.
Keeping in mind the universal principal of Wal-Mart ideology, Smart bot will be priced at competitive rates and will distribute to Wal-mart stores at competitive prices.
Price factor is important in product decision making because consumer asses the value of a product against its price. Wal mart stores are known for their low priced branded stuff. Therefore smart bot will be priced at lesser than $ 10 for single seat license. Its license will also sell at concessions for bulk and repeat purchase. Renewal cot of license will be 25% of actual purchase price. The reason behind this pricing scheme is the fact that target market of Wal-Mart stores is cost conscious and economical consumers. These consumers go for each and every penny.
Therefore cost would play a significant role in their buying decision. Consumers in Wal-Mart stores come with their kids so it will provide direct access towards largest consumer target market in the world. It is also priced at minimum level because youngsters and teenagers can purchase it from their pocket money. Placement: It will be placed through regular Wal mart distribution network. As this product is a software game, it does not require excessive time to distribution. On demand inventory in Wal-mart stores will be maintained for 3 days.
This software game will be ship in shrink rap packing to Wal-Mart warehouses. It updates are available online therefore it does not make any difference. It will not have any expiry date so Wal mart can keep maximum stocks to avoid distribution hurdles. An online portal will be maintained where from where users can download their required updates and news about the Smart bot. Another important strategy which will be adopted for distribution is that whenever someone purchases a license then a downloadable link will sent to him in order to minimize the cost of distribution.
An IT based system will be designed to attain economies of scale in distribution pattern of Smart bot. All Wal mart stores are linked with their head office. Whenever some one check out for Smart bot then their information will be send to head office from where it will be send to customer through online mediums. Promotion: The described product is game counselor which is in the form of software therefore it will be marketed through contemporary methods rather than traditional promotional measures.
A very competitive online promotional strategy will be designed in order to make it reach maximum number of consumers. Smart bot promotional activities will comprise of two types of activities ATL will comprise of Above the Line activities which includes promotional measures related to print, electronic and web media activities. BTL stands for below the line activities which will comprise of trade offers, consumer promotions, sales promotions etc. Budget allocated for ATL activities will be 40% of total advertising budgets while 60% will be allocated for BTL activities.
Consumer promotion activities will include cost cuts, bundle packaging, additional gifts, and buy one get one free offers for limited duration. It will facilitate awareness building efforts for Smart bot. Wal-Mart stores are among the most popular stores in US. They are having their online portal as well which allows E-tailing facility to its consumers. Smart bot will also place at E market on Wal-Mart stores. Along with this free trial version of Smart bot will be placed at all sort of gaming sites to create brand awareness in the minds of consumers.
One factor for which most of organization plays a vital role during their marketing campaigns both in local and international operations is positive word of mouth in community and social groups. It is critically important for any product purchase decision that peers and influencers have a positive opinion about it. Therefore a referral program will be run for Smart bot. If a buyer of Smart bot will be able to refer another customer than he will get 10 % discount for his renewal license of Smart Bot.