PRICING STRATEGIES FOR NEW AGRICULTURAL PRODUCTS
DOI:
https://doi.org/10.9755/ejfa.2021.v33.i5.2705Abstract
Pricing strategies differ for each stage of the product life cycle. Although each stage of product life has its own peculiarities and challenges, the most difficult and challenging stage is setting prices for new products. Therefore, this was the reason which aroused our curiosity to do a research which is based on the theoretical and practical plane on this issue.
Initially, the literature of various authors who have contributed in the field of pricing policy for products and services in general was reviewed. Based on this analysis, a very good foundation has been laid to understand the role and importance of pricing for new products, and the most used pricing strategies for this category of products have described and analyzed. From the theoretical analysis, conclusions have been drawn which have served as a supporting basis of the practical part of the paper.
To make this research more thorough, we reviewed a special case study of the local manufacturing company Pestova l.l.c, which managed to launch several new products in the market of Kosovo and the Region. In this case study, the pricing strategies that this company has selected for the products launched in the market were analyzed.
Finally, the conclusions that have emerged as a result of the analysis and the literature review and the concrete data obtained from the case study for the company Pestova are provided.
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References
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Pride, W. M., & Ferrell, O. (2003). Marketing. Concepts and Strategies. Twelfth Edition. Boston, New York: Houghton Mifflin Company.
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Bruce, L. C. (2014). Critical decisions in new product launch: pricing and advertising strategies on consumer adoption of green product innovation. Asian Journal of Technology Innovation, 22(1), 16-32. doi:10.1080/19761597.2014.907862
Ceku, B., & Reshidi, N. (2006). Marketingu. Prishtine: Universiteti Mbreteror "Iliria".
Chatterjee, R. (2009). Strategic Pricing of New Products and Services. Handbook of Pricing Research in Marketing, 169 - 215.
Chetty, S. K., & Stangl , L. M. (2010). Internationalization and innovation in a network relationship context. European Journal of Marketing, 44 (11/12), 1725-1743. doi:10.1108/03090561011079855
Cornelisse, S., Graziani, M. L., & Berntsen, M. (2020, March 24). Growth Strategy: Pricing Strategies for Farm and Food Business. (C. o. Sciences, Ed.) Pennsylvania, USA. Retrieved from https://extension.psu.edu/growth-strategy-pricing-strategies-for-farm-and-food-business
Czinkota, M. (2000). Marketing - The Best PRactices. The drynden Press, Fort Worth.
Feng, S., Hu, X., Yang, A., & Liu, J. (2019). Pricing Strategy for New Products with Presales. Mathematical Problems in Engineering, Vol. 2019, 1 - 13.
Field, A. (2005). Discovering Statistics Using SPSS. 2nd Edition. Sage Publications.
French, S., Jeffery, R., Story , M., Hannan , P., & Snyder, M. (1997). A pricing strategy to promote low-fat snack choices through vending machines. American Journal of Public Health, 87(5), 849-851. doi:10.2105/ajph.87.5.849
French, S., Jeffery, R., Story, M., Breitlow, K., Baxter, J., Hannan, P., & Snyder, P. (2001). Pricing and Promotion Effects on Low-Fat Vending Snack Purchases: The CHIPS study. American Journal of Public Health, 91(1), 112-117. doi:10.2105/ajph.91.1.112
Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676. doi:10.1016/j.ijpe.2011.05.014
Hallberg, N. L. (2017). The micro-foundations of pricing strategy in industrial markets: A case study in the European packaging industry. Journal of Business Research, Vol. 76, 179-188.
Hinterhuber & Liozu. (2012). Is It Time to Rethink Your Pricing Strategy? MITSloan Management Review.
Hinterhuber, A., & Liozu, S. M. (2014). Is innovation in pricing your next source of competitive advantage? Business Horizons, 57(3), 413-423. doi:10.1016/j.bushor.2014.01.002
Hitesh, B. (2019, March 21). Marketing91. Retrieved from Marketing Mix Of Lays – Lays Marketing Mix: https://www.marketing91.com/marketing-mix-lays/
Hoegg, J., & Alba, J. W. (2011). Seeing is believing: the influence of product form on perceptions of functional performance. Journal of Product Innovation Management, 28(3), 346 –359. doi:10.1111/j.1540-5885.2011.00802.x
Intersnack. (2021). The Intersnack Group. Retrieved from Our brands: https://www.intersnackgroup.com/en/our-brands-products/our-brands/indexd3f2.html?detailDceUid=7&cHash=31e64d781d8a8783567ae58557612637#:~:text=Now%20available%20in%2030%20countries,Heinz%20and%20Irmgard%20von%20Opel.
Jakupi, A. (2000). Bazat e Marketingut. Prishtine: Universiteti i Prishtines.
Kadandale, S., Marten, R., & Smit, R. (2019). The palm oil industry and noncommunicable diseases. Bulletin of the World Health Organization, 97, 118-128. doi:10.2471/BLT.18.220434
KAS. (2020, July 17). Kosovo Agency of Statistics. Retrieved from https://askdata.rks-gov.net/PXWeb/pxweb/en/askdata/askdata__15%20Structural%20business%20statistics/?rxid=44f28e59-f222-40cd-adf4-2c4b8b2c9386
KAS. (2021, April 30). Kosovo Agency of Statistics. Retrieved from Quarterly Bulletin, Q1 2021: https://ask.rks-gov.net/en/kosovo-agency-of-statistics/add-news/buletini-tremujor-tm1-2021
Kotler and Armstrong. (2019). Principles of marketing 17e. London, UK, UK: Pearson.
Kotler, P., & Keller, K. L. (2012). Marketing Management. 14th Edition. New Jersey: Prentice Hall.
Kotler, P., Amstrong, G., Saunders, J., & Wong, V. (1999). Principles of Marketing. Second European Edition. Europe: Prentice Hall Europe.
Kurtz, D. L. (2008). Contemporary Marketing. 13 e. USA: South - Western, Cengage Learning.
LaPlaca, P. J. (1997). Contributions to marketing theory and practice from industrial marketing management. Journal of Business Research, 38(3), 179-198.
Liozu, S., & Hinterhuber, A. (2013). Pricing orientation, pricing capabilities, and firm performance. Management Decision, Vol. 51 Issue: 3, pp.594-614, 51(3), 594-614. doi:10.1108/00251741311309670
Marn, M. V., Roegner, E. V., & Zawada, C. C. (2004). The Price Advantage. New Jersey: John Wiley & Sons, Inc.
Nagle, T. T., & Hogan, J. E. (1995). The Strategy and Tactics of Pricing. A guide to growing more profitably. New Jersey, USA: Prentice Hall.
Nykiel, R. A. (2003). Marketing Your Business. A guide to developing a strategic marketing plan. New York: The Haworth Press, Inc.
OECD. (2005). Oslo Manual Guidelines for collecting and interpreting innovation data 3rd edition. OECD and European Commision. Paris: OECD and Eurostat.
Oke, A., Burke, G., & Myers, A. (2007). Innovation types and performance in growing UK SMEs. International Journal of Operations & Production Management, 27(7), 735-753. doi:10.1108/01443570710756974
Prasad. (1994). Competitiveness analysis of early product introduction and technology insertion. Manufacturing Science and Engineering, 1(ASME), 121-3. doi:10.13140/2.1.3691.7128
Prasad, B. (1997). Analysis of pricing strategies for new product introduction. Pricing Strategy and Practice, 5(4), 132-141. doi:10.1108/09684909710184626
Pride, W. M., & Ferrell, O. (2003). Marketing. Concepts and Strategies. Twelfth Edition. Boston, New York: Houghton Mifflin Company.
Rowley, J., Baregheh, A., & Sambrook, S. (2011). Towards an innovation‐type mapping tool. Management Decision, 49(1), 73-86. doi:10.1108/00251741111094446
Sakaran, U. (2003). Research Methods for Business: A skill buildingapproach. New Jersey: John Wiley & Sons.
Schumpeter, J. A., Opie, R., & Elliott, J. E. (1983). The theory of economic development : an inquiry into profits, capital, credit, interest, and the business cycle. New Jersey: New Brunswick, New Jersey : Transaction Publishers.
Toni, D. D., Milan, G. S., Saciloto, E. B., & Larentis, F. (2017). Pricing strategies and levels and their impact on corporate profitability. Revista de Administração, 120-133.
Three-brains. (2021, May 1). Retrieved from Marketing innovation: https://www.three-brains.com/marketing/brand-strategy-skills/marketing-innovation/
Wachtel, K. (2011, February 18). Insider. Warren Buffett: There's Only One Thing That Matters To Me When I'm Investing In A Company. New York City, USA, USA. Retrieved March 13, 2021, from https://www.businessinsider.com/warren-buffett-pricing-power-beats-good-management-berkshire-hathaway-2011-2
WHO/FAO. (2003). Diet, nutrition and prevention of cronic diseases. WHO/FAO. Geneva: WHO.
Zec, B. (2016, February 12). POTATOBUSINESS.COM. Retrieved April 13, 2021, from Potato Business White Papers Brand Analyses, Part 2 by Potato Processing International: https://www.potatobusiness.com/wp-content/uploads/2016/02/images_whitepapers_PotatoBusiness_WhitePapers_12Feb_2016.pdf
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