Gasoline Price Volatile And The Elasticity -Myassignmenthelp.Com

Question: Discuss About The Gasoline Price Volatile And The Elasticity? Answer: Intoducation As per the discussion in the assignment A, David Jones is being considered as one of the top players in the consumer good market in Australia (David Jones 2018). They are having diversified product portfolio in order to cater to different market requirements along with effectively competing with the global players such as Amazon. David Jones is having both the online and offline market as their target market and thus, they are having the concept of Omni Channel marketing in order to cater to the customers from both worlds. The target customers for them are basically the customers looking out for the household goods and fashion garments. Assignment A discussed about the opportunities and threat being faced by David Jones from their internal environment. The consumer buying process is also being discussed in detail in order to determine the need recognition and buying influences of the customers. the previous assignment also discussed about the positioning of the brand. David Jones is being positioned as a brand with more concentration towards the customer satisfaction and generating revenue more from the offline marketplace (Singh, Kalafatis and Ledden 2014). This report will discuss about the marketing mix of David Jones briefly along with detailing the elements of price, place and people of them. This will help in determining the effectiveness of the marketing mix of David Jones. Marketing mix of David Jones Product David Jones is having diverse product portfolio ranging from household items to the fashion lines. This helps them to cover more market share and customer base in the market. Having the diversified product portfolio also helps them to have their products in different stages of the product life cycle (Qiu 2014). For instance, some of their newly introduced products are in the growth stage while some other is in the maturity stage. Thus, it enable the organization to maintain their market share consistently. Products of the David Jones also involve ideal packaging and labeling. This includes using of the recycled materials for packaging and providing the information of the impact on environment on the products. David Jones is having both proper product depth and width by having different product categories for their customers along with having varieties of the same product category. Price David Jones involves various pricing strategies in the market in order to target customer segments across different price levels. However there are various external and internal influences that determine the pricing strategy of them. These will be discussed in the following sections. Promotion David Jones involves different promotional activities in order to target more market area. They involves both online and offline promotional activities in order to cater to both types of customers. The key objectives of the promotional activity of David Jones are to communicate with more number of customers to push their newly introduced products. Moreover, another objective is to increase the maturity stage of their existing products in the market. Determination of the requirement of the customers in the market and offering products accordingly. People Contemporary business organizations such as David Jones are having the need of the effective human resource management to gain competitive advantages in the market. David Jones promotes training and development program for their employees in order to equip them to deal with the organizational issues. Moreover, providence of the training for their employees also helps David Jones to offer effective and proper customer service. David Jones also promotes incentives for their employees in order to increase their productivity and offering the best quality services to the customers. Physical evidence David Jones maintains certain store ambience and color to have an unified approach to the customers. Their employees are also being given uniform with the brand name embedded on it. Thus, it helps to enhance the brand exposure in the market. The stores of David Jones promote self service for their customers. Place Retail stores of David Jones are having their presence in busy city locations. Thus, they are having more footfalls of the customers. Moreover, David Jones is having online presence also. They follow selective intensity of the distribution channels. Pricing strategies of David Jones David Jones involves the strategy of price skimming for their products. This is due to the reason that, it helps them to generate more revenue from the market at the initial stage (Spann, Fischer and Tellis 2014). In addition, David Jones is having favorable brand value in the market and thus there is enough buzz regarding the new launches of products. With the help of the price skimming strategies, David Jones utilizes the positive buzz in the initial stage. Moreover, with time, the price is being reduced in order to enhance the lasting period of the products. Premium price in the initial stage enable the products of David Jones to create niche among the customers. Internal influence of pricing strategies Pricing strategies depends on the brand value and size of the organization. This is due to the reason that, the more brand value will be with the organization, the more will be their capability to initiate premium pricing in the market (Ingenbleek, Frambach and Verhallen 2013). Small organizations have to charge less to connect to more numbers of customers. For instance, David Jones is having favorable brand value in the market and thus it is possible for them to charge more in the initial stage of the introduction of the products. Pricing strategies also get determined by the marketing objectives. If the marketing objective is to further penetrate in the market, then the pricing will be on the lower side. On the other hand, if the marketing objective is to generate more money from the market in the initial stage, then the price will be on the higher side. External influence of pricing strategies Price elasticity is one of the key external influences for the pricing strategy (Lin and Prince 2013). If the price elasticity of the products is high then the price charged will be low and vice versa. If the competition in the market is high, then the price will be on the lower side to cut off the intensity of the competition. On the other hand, if the competition is low, then it is be easy for the business organizations to charge higher. It will help the organizations to generate more revenue from the market. People As discussed earlier, David Jones promotes effective human resource management for their employees. This is due to the fact that, David Jones cater to the consumer products and thus, employees should be effectively managed I order to provide quality customer service. In accordance to this concept, they have effective training and development program for their employees. Place David Jones is having Omnichannel marketing strategy in order to cater through both offline and online distribution strategy. The production process of them is being outsourced and thus it helps them to reduce the cost of production. Moreover, the market penetration of their retail offline stores is more and has their presence in different locations around the world. Thus, more market areas are being covered. With the help of their online distribution strategy, areas untapped by the retail stores are being covered. Their online marketplace is being available in different locations around the world. From available three intensities of distribution process, David Jones promotes the selective distribution strategy (Karray 2013). This helps them to offer their products from their own stores and maintain the ambience of the stores in accordance to their brand impression. Moreover, having the selective distribution strategy helps to control the pricing of their products without the influence of any third party retailers. With having the selective distribution strategy, David Jones is aligning the store ambience, color and the customer service with that of their brand. It will in turn enhance the brand recall of the customers. Recommendations Initiation of the price skimming strategy will help to generate more revenue in the initial stage and enhancing the life cycle of the product. Initiation of the training and development will help to provide quality customer service. Initiation of the selective distribution strategy will help to regulate the price and store ambience effectively. Reference David Jones. (2018).About Us - David Jones. [online] Available at: https://www.davidjones.com.au/About-David-Jones?_ga=2.174872677.657375688.1516529745-828052632.1516529745 [Accessed 21 Jan. 2018]. Ingenbleek, P., Frambach, R.T. and Verhallen, T.M., 2013. Best practices for new product pricing: impact on market performance and price level under different conditions.Journal of Product Innovation Management,30(3), pp.560-573. Karray, S., 2013. Periodicity of pricing and marketing efforts in a distribution channel.European Journal of Operational Research,228(3), pp.635-647. Lin, C.Y.C. and Prince, L., 2013. Gasoline price volatility and the elasticity of demand for gasoline.Energy Economics,38, pp.111-117. Qiu, T., 2014. Product diversification and market value of large international firms: A macroenvironmental perspective.Journal of International Marketing,22(4), pp.86-107. Singh, J., P. Kalafatis, S. and Ledden, L., 2014. Consumer perceptions of cobrands: The role of brand positioning strategies.Marketing Intelligence Planning,32(2), pp.145-159. Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic pricing for new products.Marketing Science,34(2), pp.235-249.