IKHLAQ AHMED

Assignment Principal of marketing

Sir Naveed Ahmad

Roll No= F-18-1283

Class = BSCS
Section = B
Semester= 4th
Subject = Principal of Marketing

QUESTION NO #1
Analysis:on Skimming and Penetrating Pricing
strategy
What is Skimming
Pricing skimming is product pricing strategy by which a firm charges the highest initial
price that customers will pay and then lowers it over time.
What is Penetration
Penetration pricing is a marketing strategy used by businesses to attract customers to
a new product or service by offering a lower price during its initial offering. The lower
price helps a new product or service penetrate the market and attract customers away
from competitors.

Definition of Pricing Strategies

A pricing strategy is a course of action designed to achieve pricing objectives.
Generally pricing strategies help marketers to solve the practical problems of setting
price. These strategies is commonly using in pakistani companies
1) Pricing and marketing objectives
2) The markets for its products
3) The degree of product differentiation
4) The product’s life cycle stage
Price Skimming Strategy
Price skimming is the strategy of charging the highest possible price for a product
during the introduction stage of its life-cycle. The seller essentially “skims the cream”
off the market, which helps to recover the high costs of R&D more quickly. In addition,
a skimming policy may hold down demand for the product, which is helpful if the
firm’s production capacity is limited during the introduction stage.
Price Penetration Strategy
At the opposite extreme, penetration pricing is the strategy of setting a low
price for a new product. The main purpose of setting a low price is to build
market share for the product quickly. The seller hopes that the building of a
large market share quickly will discourage competitors from entering the
market.

Strategy used by I-phone:

•• APPLE I-PHONE
SAMSUNG
• OPPO
APPLE I-PHONE►
 
INTRODUCTION
Apple Inc is an American multinational organization located in 1 infinite loop,
Cupertino, California 95014, in the middle of the Silicon Valley. It is focused on
designing and developing the personal computers, other related software products,
and the electronic products such as MP3 players and iPods. Apple Inc’s main products
are iMac, iPod, iPhone, and its latest advanced product is iPad, which is on the verge
of creating another revolution after iPhone. Apple Inc was founded in 1976 and since
then Apple Inc has been leading the way in innovating new products, however it has
encountered numerous ups and downs since then.
Skimming pricing strategy of I-Phone:
Apple has started with the price skimming strategy after their technology
breakthrough in the innovation with smart phone market.
Apple used price skimming strategy in 3 years ago when Iphone 6 was launched.
Iphone six hit the market hit the market with a premium price and very few people
could afford it. Iphone 6 prices have gradually slashed down with time. Iphone six
prices have relatively fallen to compete with other android devices. Another case
scenario is with the launch of Iphone X. They were sold at very prime prices in large
quantities before the price significantly dropped .
The introductory price for the iPhone’s price was $599 with space storage of 4 GB and
$699 for 8 GB storage. In September 2007, Apple changed the price strategy by
lowering the price of the 8 GB model to $399 and selling 4 GB until stock is out.
Another slice in the price came due to the AT&T subsidized hardware. The price of 8
GB iPhone further reduced down to $199.
This was a skimming strategy used was Apple company in excellent manners.
Advantages of Skimming Price Strategy:
Skimming pricing has main advantages.
1) High short-term profits due to the uniqueness of the products.
2) Enhance their big market to skim to compete the android elegantly.
3) Customer continously buy products
4) Stands market in whole world and specially in 2nd or 3rd world countries due to this
skimmimg strategy
Penetration pricing strategy of Apple I-Phone:
The choice or pricing strategy is particularly important for high-tech products since
its life cycles are short. Differentiation can lead to profitable success for such
products. Skimming pricing strategy is beneficial for differentiating products. A
skimming pricing strategy means charge high initially and subsequently lowered
The rationale of this strategy is to skim surplus in the product early life cycle. The
initial high selling price can help the company cover the development cost from in
the early stage. This enables company to strengthen their product innovation and
development
Comment/opinion:
In my opion Apple i-phone both strategies are good in
their manners respectively .Skimming pricing strategy is better because Apple made
their brand and gain popularity in whole word also in pakistan,so I-phone user always
like I-phone's,so Skimming is like a opportunity for Apple user when price is laid
down,its better for Pakistan like country or other Under-developed countries.

SAMSUNG►
INTRODUCTION►
 Samsung Electronics Co., Ltd. is a South Korean multinational electronics
company headquartered in Suwon, South Korea • Samsung has long been a
major manufacturer of electronic components such as lithium-ion batteries,
semiconductors, chips, flash memory and hard drive devices • It is currently
one of the world's largest manufacturers of mobile phones and smartphones
fueled by the popularity of its Samsung Galaxy line of Devices.
PRICE STRATEGY OF SAMSUNG:
Pricing is one of the major issues in marketing as it requires understanding the
product and understanding the market. Samsung is faced with highly opponents
by others in the market like Apple, HTC, and oppo,Nokia among others. Samsung
undertakes a pricing strategy which is winning. Samsung has not been so
popularly in the past but have undertaken strategy in marketing to increase its
popularity in the Smartphone market. At the end of 2016, it led the smartphone
market with a share of 21.2% compared to 22.3% in 2015. Samsung still leads
the smartphone market in 2020
Skimming Pricing Strategy of Samsung
Samsung also a big popular brand thats why its again using Skimming
method
It is aimed at maximizing profits by charging a higher price initially to the first
customers. With time the price is lowered gradually to attract more consumers to
purchase it. Companies will use this strategy to capitalize on those consumers that
have the will of spending on a product that has cutting edge technology.
Samsung products in the market are fairly competitive and are one of the best in
the market. That being the case, Samsung uses a price skimming pricing strategy
to get the best value for its products. In almost all cases, it is the first to launch
new smart phone products. Samsung does this at an initial higher price before the
competitors actually catch up. The company will eventually lower the price . The
various strategies that can be used to market, such as intensive distribution,
selective distribution, exclusive distribution and franchising, alongside of other
aspects of the marketing mix. Samsung products are made available in the market
through a varied means of distribution. Samsung executes the distribution by
working on a concept of channel marketing with the following segments; sales
and services dealers, modern retail and distributors .
Skimming pricing is used when a product, which is new in the market or just
launched, is sold at a relatively high price because of its uniqueness, benefits to
customers or its current Wow factor. However, slowly but surely when the
product gets older in the market, then the price is dropped and the product is
brought at competitive pricing. Skimming allows the firm to adjust and update
its prices with increased competition resulting to a decreased price in order to
attract more consumers.Pakistani market support this skimming strategy very
warmly.
My Opinion:
No other opinion is that Skimming is best pricing strategy,because
big brands faces competitors not other problems like decrement in their brand
name,thats why penetration strategy is not suitable for that like brands.Samsung
gernally using skimming in Pakistan and also 2nd or 3rd world countries respectively.

OPPO►
INTRODUCTION:
Oppo Electronics Corp. is an electromagne#c manufacturer from China,
based inGuangdong, founded by Tony Chen in 2004. Oppo entered the mobile phone
market in 2008 and entered the Vietnamese market. Male in 2013. With a focus on
China and Southeast Asia market, Oppo condently upholds the desire to "surpass" big
Samsung and Apple in this market and reach out to the world.Since penetraiting into
the mobile phone market, Oppo constantly applies the latest technologies, the best
quality and the most user-friendly products. Oppo is a registered trademark in 140
countries around the world, providing customers with products thatare highly
appreciated by many leading experts
PRICE STRATEGY OPPO:
The price of OPPO mobile phones ranges from 20,000 RS.to 1 lakh Rupees standing in
the mid-range and high-end prices. Among the same products of the mobile industry,
the price of OPPO mobile phones is comparatively higher. Different series are priced
differently. Series A mobile phones are priced between RS 20,000 TO RS 70,000 while
Series R mobile phones are priced between RS 70,000 to RS.1 lakh . In terms of the
overall price strategy, the prices of OPPO mobile phones are unified across the country
and are strictly regulated.
Skimming pricing strategy of Oppo:
Oppo company is also one of the bestselling brands in Pakistan but it also have its
draw backs and Opppo company cannot afford to do skimming because there are
other companies who are available in competing price and technology, and it would be
a bad idea to do skimming knowing there state and cannot afford to do skimming with
their current competetors
There’s no doubt that Oppo is rising in the market very fast but there are not able to
produce a Smartphone that they can do skimming with.
Oppo company don’t met with conditions for the skimming strategy for pricing.
Penetration pricing strategy of Oppo:
Oppo gradually working with penetration strategy because oppo want to take part in
Pakistan big technology or smartphone markets so penetration is only a ways to made
a brand name in pakistan
Penetrating pricing strategy is the best for Oppo because they want to get a hold of
the market that’s why Oppo company is penetrating pricing strategy and they met the
condition for it in this way they can get the most of the market costumers and increase
their production and sales this is the best way for Oppo to earn their trust among
people by lowering the price of the Smartphone they can penetrate in the market.
Comment:
Oppo should use penetrating strategy
This is a good method for Oppo►
The reason I think Oppo should use this method because they are doing well in
the Pakistani market and are leading market shareholder. They are producing
Smartphone at affordable prices for the low income to middle income people.
Oppo is not a big game like Apple I-Phone and Samsung that’s why the need to
use penetrating strategy pricing.

QUESTION NO #2
COCA-COLA►
MEDIA PLANNING OF COCA-COLA:

INTRODUCTION►

THE COCA-COLA COMPANY, AMERICAN CORPORATION FOUNDED IN 1892 AND TODAY

ENGAGED PRIMARILY IN THE MANUFACTURE AND SALE OF SYRUP AND CONCENTRATE
FOR COCA-COLA, A SWEETENED CARBONATED BEVERAGE THAT IS A CULTURAL
INSTITUTION IN THE UNITED STATES AND A GLOBAL SYMBOL OF AMERICAN TASTES.
THE COMPANY ALSO PRODUCES AND SELLS OTHER SOFT DRINKS AND CITRUS
BEVERAGES. WITH MORE THAN 2,800 PRODUCTS AVAILABLE IN MORE THAN 200
COUNTRIES, COCA-COLA IS THE LARGEST BEVERAGE MANUFACTURER AND
DISTRIBUTOR IN THE WORLD AND ONE OF THE LARGEST CORPORATIONS IN THE
UNITED STATES. HEADQUARTERS ARE IN ATLANTA, GEORGIA.

MEDIA PLANING OF COCA-COLA Types:

• PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)

• BROADCAST MEDIA (RADIO, TV)

1) PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)

Coca-Cola tries and print ads in all leading newspapers including The down,
Jung, nawa-i-waqt ,Daily Yadain, Daily News, Daily Times, Daily Express,
khabrain and newspapers as well
Coca-Cola place its ads in all leading magazines as well i.e. Sunday magazine,
akhabr-e-jahan, libas, mag etc

Newspapers are one of the most popular forms of media advertising that is

widely used by Coca-Cola. Coca-Cola Company is one of the companies that has
starred media advertisement in its earlier stages, and by now the company has
been engaged in media advertising for more than 100 years.

Posters and billboards are also widely used as an integral part of the Coca-Cola
media promotion. The billboards are usually placed at the city centres and
highways around the globe as well as some parts of the rural areas. Posters, on
the other hand, are normally displayed at the public transports, shops and
restaurants

Magazines are widely used at a global level to advertise Coca-Cola. The magazines are
chosen according to their readability by the target customer segment of the company.
These advertisements usually occupy an entire page of the magazine to maximise the
positive impact of the marketing initiatives.
2) BROADCAST MEDIA (RADIO, TV)

Coca-Cola tries and advertise in all Pakistani channels including GEO, HUM
ARY, INDUS, TV ONE, HBO, etc. Coca-Cola also plays its ads on local
channels like PUNJAB TV and RADIO.

Coca-Cola has been advertised through television in many countries. Coca-Cola

features different ads in different countries. These ads are prepared considering
the local culture to avoid any misunderstandings due to the differences in the
culture of different countries.

Coca-Cola is also advertised in cinema and this is undertaken in two ways. Firstly,

Coca-Cola video advertisements are played in cinemas before the movie starts.
Secondly, Coca-Cola is advertised through product placement in movies, wherein
the drink is featured somewhere during the movie and the efficiency of the
product placement is maximised by showing the drink being consumed by the
lead role.

Coca-Cola radio advertisement usually lasts only a few seconds, but is

considered to be efficient in terms of increasing brand awareness and customer
loyalty
.
ONLINE MEDIA►

Internet is another platform where the various forms of Coca-Cola

advertisements are placed. Specifically, the brand’s online advertisement is
undertaken through the extensive use of banners, pop-up ads, on-site
sponsorships and various other forms of online advertisements in thousands of
websites along the globe. There are also various forums and websites dedicated
to Coca-Cola fans, where users can share their stories involving Coca-Cola.

COCA-COLA SOCIAL MEDIA ADVERTISING►

 • Facebook
• Twitter
• Instagram
• YouTube
• Google Plus
• Pinterest
• Other social media channels etc.

CONCLUSION:

Coca-Cola no doubt come the heart beat of Pakistanis. Coca-Cola is one of the
leaders in sponsoring the most important, thrilling events. E.g. Cricket matches,
concerts and many other social occasions. Event at the present they are
organizing a Basant festival for which they busily organizing stuff.

PEPSI►
INTRODUCTION►

Pepsi is a carbonated soft drink that is produced and manufactured by

PepsiCo. Created and developed in 1898 and introduced as “Brad’s Drink”, it
was later renamed as Pepsi-Cola on June 16,1903, then to Pepsi in 1961.
Pepsi cola is one of the largest soft drinks industries which operate in Australia.
The main products of the company comprises of different soft drinks brand
including Pepsi, Pepsi light, Pepsi max, 7UP, Diet 7UP,caffeine free Pepsi light,
Mountain dew

MEDIA PLANING OF PEPSI FOLLOWING PARAMETERS►

• PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)

• BROADCAST MEDIA (RADIO, TV)
PEPSI ADVERTISEMENT HISTORY:

When introducing Pepsi-Cola, once known as “Brad’s drink”, as their first

product back in 1898 “Exhilarating, invigorating, Aids digestion”, was the
original slogan advertised for the upcoming beverage. By 1910, franchises
were spreading in twenty four states, selling over 100,000 gallons of syrup per
every year. Caleb bradhan the creator of Pepsi was advertising Pepsi through
newspapers since he had renamed it Pepsi-Cola

PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)►

Print advertisements are ads that are printed by companies and published in
newspapers, magazines, brochures, and flyers.
Pepsi tries and print ads in all leading newspapers including The down,
Jung, nawa-i-waqt , Daily News, Daily Times, Daily Express, khabrain and
newspapers as well
Pepsi place its ads in all leading magazines as well i.e. Sunday magazine,
akhabr-e-jahan, libas, mag etc

Effective words:
Pepsi always create a brand slogan to remember its name
in public mind like in Pakistan a very famous is "Dunya hai Dill walon ki".This
time of slogan create a big impact of brand on people minds.

Effective Print Media:

Pepsi used various semiotics for print media advertising: colors used, the
slogans, music, clothing, gestures & expressions, camera angles etc. used in
the respective advertisements. It is amazing how everything from the simple
bottle-design, the text used in the advertisement typically promote the color and
joy of Pepsi in magazines and newspapers, yet invaluable meanings. We
always look that pepsi always promote their brand with any kind of food like
Burgers,BBQ,Biryani in magazines and newspaper wall which can influence
and affect the audiences and consumers. I shall touch the point of “Joy” used
for selling in the advertisements of such brands and name a few others who
use such tactics. Pepsi also promote their brand through print their logo, slogan
on Pakistani player Shirts, for the reason of gain the popularity of Pepsi in
World.

OUTDOOR ADVERTISING►

Outdoor advertisement are ads on:

• Billboards
• Kiosks on electric poles
• Bus shelters
• Vehicular display
• Wall posters
• Banners
• Landscape and street furniture

BROADCAST MEDIA (RADIO, TV)►

Pepsi tries and advertise in all Pakistani channels including GEO, HUM ARY,
INDUS, TV ONE, HBO, etc Pepsi also plays its ads on local channels like
PUNJAB TV and RADIO.

PEPSI SOCIAL MEDIA ADVERTISING►

• Facebook
• Twitter
• Instagram
 • YouTube
• Google Plus
• Pinterest
Other social media channels etc.
Effective Broadcast Media:
The television and radio commercials, online advertisements, portray the
product as a hero, presenting Pepsi as the perfect accompaniment to all
manner of food -- like hot dogs, snack chips and pizza -- and all manner of
fun, like football games and dates. The campaign replaces right-brain ads
infused with celebrities and music that began with the theme ''The joy of
cola'' in 1999, which became ''The joy of Pepsi'' in 2001. Pepsi
create ads have been replete with jingles, humor, stars and special effects,
a far cry from the prosaic days when Pepsi was called ''the kitchen cola'' and
ads carrying the theme ''Be sociable, have a Pepsi'' showed that Pepsi is a
national product of country.

SURF EXCEL►
INTRODUCTION►

Surf Excel Surf Excel, launched in 1948 under the brand name ‘Surf’ in
Pakistan & in 1959 launched in India as a first detergent powder. Initially, the
brand was positioned on the clean proposition of “washes whitest”. However,
with the emergence of numerous local detergent manufacturers and the entry
of other global brands, Surf Excel underwent various changes in its Brand
Communication. This is in line with the global communication platform of Dirt Is
Good, which is a communication strategy of Unilever for its premium detergent
products, sold under various brand names; such as Omo In Brazil, Persil in UK
and Skip in France, Greece, Spain and Portugal. Some of the other major
detergent products of Unilever in India are Rin and Wheel.

MEDIA PLANING OF SURF EXCEL FOLLOWING PARAMETERS

 • PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)
• BROADCAST MEDIA (RADIO, TV)

PRINT MEDIA (NEWSPAPER, MAGAZINE ETC)

Surf Excel is one of the best and old detergent powder in Pakistan. Surf Excel
is a global product and it’s using print media for every long time. It’s also print
their ads in newspapers because mostly in Pakistan using newspapers over
magazines.Surf excel now promote their ads through famous celebrities and
Stars of different industry and designs special ads for Ramzan Kareem to "To
wash hearts in Ramadan" its a special slogan used to promote their washing
brand

BROADCAST MEDIA (RADIO, TV)

Lux mostly use Drama TV channels ( ARY Digital, Hum TV, Geo TV, Apna
channel) for ads like and use different methods in different places.

ADVERTISEMENT►

Most of the communication is done with the help of children through tagline Dirt
is good.
• Media advertisement budget is approximately PKR 40, 000,000 in 2012,
which was PKR 27,939,217 in 2009. • 70 % of the people who use Surf Excel
clearly recalled the different ads.
• 30% of the Surf Excel respondents said that company fulfills the claims made
in advertisements, 52% said that to some extent they fulfills claims made in ads
and remaining 18% said that they do not fulfills claims. 40. Spotlight: Dirt is
good 41. Integrated Marketing Communication 42. Public Relations 43. I’m
Paid to Learn Educating 2300 Child Workers In Pakistan 44. Learning through
Play
• Initiative of Surf Excel – A Brand of Unilever Promoting Experiential Learning.
• Selection of three Parks in Lahore ,Karachi, and Rawalpindi. • Signing MOU
of parks with District Governments for the period of one year. • Installation of
five play equipments in each park with the help of Rafi Peer Group. •
Attachment of one neighbouring school to each park by MOU for the period of
one year. • Partners: • Idara-e-Taleem-o-Aagahi • Parks & Horticulture Authority