The pricing of the company is comparatively higher then the competitors due to obvious reasons. First, the demand for company’s products is always their and being a market leader it enjoys the monopolistic powers in the market. Secondly, LoFric is a globally recognized brand with a number of loyal customers who have been using the product for more then 25 years. Also the high quality and use of latest technology make the products use more effective and convenient for users that convince them to pay higher.
However, under this marketing campaign, the company has to follow the following price structure and in other words price discrimination between different target markets. First of all the company can get into contracts with hospitals that makes the company their constant suppliers for a fixed period of time and the hospital only uses Astra Tech’s catheters. This can be done through only one way.
The company and hospital come under a settle of a fixed discounted price which is competitive with the retail price of other companies. This will help both the hospital and the company in the sense that company will make a permanent customer for a fixed period of time and at the same time hospital enjoys high quality cheaper supplies for its patients. Incase of pharmacies, they are also given discounts and benefits depending on the levels of bulk purchase that they buy.
Not every pharmacy has very big operations and customers, thus to accommodate the lower ones in this discount scheme, the marketing plan suggests that different levels of discounts should be devised. The higher the amount of bulk purchase, the higher will be the benefits and the lower the amount of bulk purchase, the lower will be the discount rate. Those who make huge bulk purchases may be given benefits such as complimentary gifts, complimentary products from the portfolio of the company as promotions, higher discount rates and privileged services (Balkin, 1999).
Coming on to the general physicians, they can be provided with free samples of the product in the initial stage in order to promote the product among those users who do not visit the hospitals and pharmacies and rely heavily on their physicians these physicians. These physicians will also be happy because they will be able to retain their customers by providing them free of cost medical equipment under the promotional campaign. This is also one way to promote the product to the end users directly.
The company can also announce a promotional price under this marketing campaign in order to make news in the target markets that the high quality products from the market leader in the industry can be bought at cheaper rates. These equipments are such that users need them quite frequently, thus, attracted by these promotional prices, the consumers can be attracted towards the product as they are to be attracted towards any other product. It will not be difficult for users to switch from other competitors to Astra Tech products even for the sake of a trial basis.