Question

Part One: Select one of the product categories below. Identify three different manufacturers that offer consumers a line of product offerings in the category. (For example, Dell, HP and Apple each sell a variety of laptop computers.) Research the product lines and pricing of the three companies.

1. Laptop computers 2. Vacuum cleaners 3. LED TVs 4. Smart phones 5. Appliances (refrigerator, washing machine, oven, etc.)

Part Two

Based on your research, develop a paper on the price lining strategies of the three companies. Your paper should include:

(1) brief background on the specific products and the companies that produce them

(2) pricing chart including the specific price points of the product offerings of each firm (see example below)

(3) your ideas for why the specific price points were selected,

(4) discussion of how the price lining strategy maximizes revenue,  

(5) explanation of how the price lining strategies of the three firms are alike and how they are different, and

(6) possible reasons for differences in the strategies (for example, differences in target market, cost structure, profit goals etc).

Create a paper of a minimum of 500 words.

Sample Pricing Chart

	Apple		Dell		HP
Laptop 1	Name	Price	Name	Price	Name	Price
Laptop 2	Name	Price	Name	Price	Name	Price
Laptop 3	Name	Price	Name	Price	Name	Price

Answer 1

Smart Phones today, are the lifeline of an individual in the hypothetical world. A person can stay away from his family and friends but can’t part away from his smartphone. This attachment to the smart phones is the result of the evolving and highly efficiency nature of the phones to do everything in it. A person can now do everything on a good smartphone that would earlier require a Personal Computer. Moreover, Smartphones are now evolving with latest and faster processors to process any sort of data and application. Let us look at the sample pricing Chart of the below three smart phones to have an idea about their offerings and consumer demands for them:

                                     In the chart above, we have listed three top smartphone manufacturers and one of their latest and top model products and their prices accordingly. From the above sample pricing chart we can see that, Apple manufacturers and sells its latest iPhone 7 at around $ 999, Xiaomi manufacturers and sells its latest smartphone Redmi 6 PRO at around $213 and Sony manufacturers and sells its latest smartphone Sony Xperia XA2 at around $249. These three variants are one of the latest and top models of these companies.

                                   iPhone has its own market. An iPhone is popular to be much more than an ordinary smartphone because of its high-end customer-centric features. Most of the users of iPhone believe that Apple has a very good regulatory and safe database which is not allowed to be shared or sold to other third-party companies. This makes their data secure. Moreover, Apple has premium applications and software’s which are very costly in the market. Apple is said to be also charging for most of its third-party application usage. However, there is a tremendous demand for iPhones in the United States market and even Worldwide, Apple has now been to some extent been successful in spreading its dominion. Instead of its highly priced products, what makes this phone viable to the customers is its features. People these days are crazy about new and secured facilities. Since iPhone boasts about its security and differential appeal, it has gained the attention and priority of many customers. People are ready to pay any amount of money to get a secured product. Moreover, lately, iPhones have more or less become a symbol of status, and a fashion statement which shows the upper financial capability of the individual who holds the iPhone. This market thought has led to many of the younger generation people tp get attracted towards buying an iPhone.

Smartphones from Sony has been a symbol of good build and quality from many years now, just alike its other reliable products. Sony has had a good electronic market hold for many years now, owing to its products being very good in their build quality and the service provided by their manufacturers is also very good. Sony smartphones are also not cheap to buy but not as highly priced as iPhones. What makes it easier for people to choose SONY is its brand name and the service it offers. Sony has been seen to never compromise in the quality of their product, even through they are having to charge little bit more from their customers for the product they are building, and in the process losing some of the customers. Their customers have a very good after buying experience which spreads to other prospective customers. It is important to note here that Sony not only sells Smart phones, but a host of other electronic items such as Tele Vision, Refrigerator, Home theater, Speaker, Ear phone and many alike electronic items. It has to be duly mentioned that Sony has maintained its brand quality in every item it builds thus making it an easy choice for the customers.

Xiaomi is the latest trend and hot debated brand in the smart phone industry. It has entered in to the smart phone industry with some eye balling smartphones at very cheap prices. Phones from Xiaomi may not be of the top most build quality, but they provide a host of features and much more features than its competitors at prices which were never seen earlier. When Xiaomi entered the market, it was given the status of a trend setter. It was Xiaomi that started the trend of providing highly sophisticated and more features in the smartphones at cheaper rates. Now, there is a huge competition among this bracket of the smartphone manufacturers as they are trying to compete with Xiaomi with the host of specifications and features that Xiaomi provides and with the prices at which it is offering the products. Many few firms have already given up on the competition with Xiaomi , however, Xiaomi has also kept evolving with newer and better features to provide the customer with better experience on purchasing every new of its product.