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    11 Activity 2 CP

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    arisu
    Miele employs a premium pricing strategy in Asia and Russia by positioning itself and its products as a luxury good. This strategy contributes to its success through its high product performance that lasts up to 20 years, and its control over the value chain in those markets. To succeed with an alternative strategy, the company would need to observe economic conditions and customer preferences, adjust prices transparently based on willingness to pay, and continue providing high quality products.

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    11 Activity 2 CP

    Uploaded by

    arisu
    988 views1 page
    Miele employs a premium pricing strategy in Asia and Russia by positioning itself and its products as a luxury good. This strategy contributes to its success through its high product performance that lasts up to 20 years, and its control over the value chain in those markets. To succeed with an alternative strategy, the company would need to observe economic conditions and customer preferences, adjust prices transparently based on willingness to pay, and continue providing high quality products.

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    Miele employs a premium pricing strategy in Asia and Russia by positioning itself and its products as a luxury good. This strategy contributes to its success through its high product performance that lasts up to 20 years, and its control over the value chain in those markets. To succeed with an alternative strategy, the company would need to observe economic conditions and customer preferences, adjust prices transparently based on willingness to pay, and continue providing high quality products.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    988 views1 page

    11 Activity 2 CP

    Uploaded by

    arisu
    Miele employs a premium pricing strategy in Asia and Russia by positioning itself and its products as a luxury good. This strategy contributes to its success through its high product performance that lasts up to 20 years, and its control over the value chain in those markets. To succeed with an alternative strategy, the company would need to observe economic conditions and customer preferences, adjust prices transparently based on willingness to pay, and continue providing high quality products.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Name: Dela Piedra, Jr. Riedel Angelo S.

    Year & Section: BSBA-2A

    Subject: Costing and Pricing

    Miele

    Answer the following questions: (3 items x 10 points)

    1. What type of price strategy/positioning is being employed by Miele based on the case study?

    As being said in the given scenario, Miele considered their company and products as a
    pure luxury brand in the market of Asia and Russia, it said that it is a true luxury good in some
    parts of the world. So clearly the Miele company are using a premium-price strategy in selling
    their products in different countries.

    2. What is/are the factor/s that contribute/s to the success of the company using its price
    positioning strategy?

    Under the premium-price strategy, some factors such as: highest level of performance,
    and having control of the value chain contributes to the success of Miele company using its price
    positioning strategy. First is the highest level of performance, Co-managing director Markus
    Miele explained that: “We are at home in the premium segment. Our products are engineered
    to last for 20 years. In terms of technology and ecology, they are among the best you can buy.
    People are willing to pay higher prices for this promise of quality”, they guaranteed the
    customers that their product will last for an estimated 20 years. While the second is having
    control of the value chain, they control their value specially in Asia and Russia so that’s why they
    are still selling products with a premium prices without affecting their sales.

    3. How can the company achieve success by using a different price positioning strategy?

    By being observant at the economic run, on what are the customers are looking, how
    much people are willing to pay for your products, in that way it would help you to achieve
    success even if you use different price positioning strategy. Be transparent, be able to adjust to
    the situation and the economy, provide the best product that you can.

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