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Essay / Research Paper Abstract
This 4 page paper compares and contrasts the pricing and distribution strategies of two major watch company; Timex and Rolex. The similarities and differences of each company are considered in terms of their target market and positioning. The bibliography cites 5 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEtimexprice.doc
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Unformatted sample text from the term paper:
is possible to see how they have undertaken strategies suited to their target market. The paper will look at Timex first and then Rolex. Timex have a pricing strategy
that reflects the mass market position. The prices on the Timex watches start from $30 for women watched and $35 for men ranging to $300 provide a wide range of
quality and styles, but there is a distinct bias towards the $50 +/- $10 mark. This places the firm at the lower end of the market. The consideration when undertaking
a pricing strategy is to determine the price that is optimal for the firm. This is often undertaken with reference to supply and demand curves. Generally, for most products, the
lower the price the greater the demand, and as process increase the demand will decrease (Nellis and Parker, 2006). However, this also needs to be balanced against the need for
profit with consideration of the unit cost and overheads (Nellis and Parker, 2006). From the strategy of Timex it is possible to see that the firm is seeking to make
profit by selling large quantities of watches at low prices. The firm also uses pricing strategies to boost sales; with short term special offers were prices are reduced, with the
aim of increasing short term demand. This may be seen on the web site Timex.com, where there are short term offers. The short period for which the offer is made
also seeks to place pressure on the consumer to make a fast purchase decision, increasing the potential for impulse purchases (Kotler and Keller, 2008). In the period to Christmas 2011
there is an offer a day being made, with a price reduction accompanied by a countdown clock showing how long the offer will last (Timex, 2011). With mass
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