Category: International Pricing

Ikea’s European pricing strategy

Author: Livria Laurent International companies use different price points for identical products. Basically, such an approach is feasible as buying power is different among countries. However, the price comparison analysis of the sofa KLIPPAN from retailer IKEA, shows a very different picture. Surprisingly, the sofa KLIPPAN can be bought in Switzerland for EUR 218.00, the lowest price of all countries involved in the analysis. By having a look at the statistics, it shows that Norway’s buying power is 6% higher …

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Value-based pricing as a strategy to maximize profit

A value-based pricing strategy includes both the value creation and the value appropriation. Firstly, it is important to understand exactly what drives sustainable value for people. Creating these values in products and services is the foundation of the value-based pricing. The cosmetic brand La Prairie, for example, launched their Caviar Collection for a very special skin treatment. By communicating the value of the visible improvement one’s face will receive, the perception and the willingness to pay a higher amount for …

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Pricing strategies

Author: Hannelore Tontsch In the past, prices were built on natural needs, rather than on the demand of the market. Therefore it was easy selling and practised everywhere with high margins. And these days ? A pricing strategy is one of the most important parts of managing any business – But how could we set a price? Cost versus value If you choose a cost-based pricing structure, decide on the gross profit you would like to make on top of the …

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International Marketing – we keep at it

New markets offer new challenges. Nowadays, keeping up with the competition means an international profile is imperative. This bilingual German/English blog is dedicated to the topic of “International Marketing and Communication”. We will deal with topics such as: – Global Brand Management – Online Communication worldwide – International Pricing – International Campaigning and Advertising – Market Entry Barriers – Strategic Selling – Negotiation Strategies and International Communication. Experts will contribute articles referring to exciting events on the topics, introducing methods …

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