Price Recommendations
by amit kaushik
1. Meal Deals
1.1. Will have to offer meal deals to attract teenagers, but will need to make sure they are still making a profit.
1.2. Push prices up of other products in the shop, so they can offer meal deals to teenagers and still make a profit.
1.3. Meal deals can be priced between £2.50 - £3.00, so they are affordable for teenagers.
2. Penetration pricing
2.1. Offer low prices to teenagers in the short term, so they are encouraged to buy and try the food offered at Hartley's.
2.2. Teenagers will buy and try the food and this will increase sales in the teenage market for Hartley's.
2.3. Will Hartley's be able to maintain the low prices for long? They can if they increase products for other food items that won't be affected by price.
3. Price skimming
3.1. Increase prices of those products that sell well, or which are new, like flavoured fresh bread. As adults buy such goods.
3.2. Use the money from the price increase of new products, to fund the lower prices offered to teenagers.
3.3. Could lose customers in the short term, and therefore a reduced profit.
