The 17th marks essay...( 0.0 )

Pricing policy is important because the product price decided upon must be to cover the firm’s cost of producing and marketing the product and generate an acceptable level of profit. Getting the right price requires balancing between being competitive and being profitable. Therefore, the issue whether to lower the price of whisky B or not depends on these factors: elasticity of whisky B, marketing objectives, competition, nature pf whiskey and economic conditions.

Price elasticity of demand measures the responsiveness of demand following a change in price. Whisky B may has a inelastic demand whereby PED is between 0 and 1. It is measured by % change in quantity demanded over % change in price. Therefore, an increase in price will lead to a less than proportionate decrease in quantity. This rationalise for the raise of price as the firm will not lose much demand and still able to increase total revenue.
On the other hand, if whiskey B has a elastic demand where PED is between 1 and infinity – a percentage change in price will lead to a more than proportionate change in quantity demanded. Price of whisky B should not increase as it will lose much demand and will suffer from a loss in total revenue.

One factor affecting PED of whisky B is the number of substitutes. Whisky is a type of alcoholic drink where consumers may substitute it with other alcoholic drinks such as beer, brandy and red wine. In such cases, whisky B will have an elastic demand and thus its price should not be changed. However, consumers of some countries may have a strong preference for whisky, thus leading the demand to be inelastic.
Alternatively, whisky B may be one of the choices from many other companies that produce similar type of whisky, in consumers’ point of view. There is thus a high number of substitutes, contributing to high elasticity of whisky B. If Whisky B has done much marketing effort in positioning itself as a superior brand as compared to its competitors, it can increase price and enjoy higher total revenue as it enjoys the benefit of inelastic demand.

One of the marketing objectives which may be taken by whisky B is to capture as much market shares as possible especially when it has entered the global market, as a new product. To achieve its goal, it may adopt price penetration strategy which rationalizes for the decrease in price. This act as an incentive for potential customers to try out their new product and thus increase their competitiveness of whisky B. This is essential in a highly competitive, price sensitive market such as USA where it imports alcoholic drinks all around the world.
However, price penetration strategy should only be adopted for a short period of time after its promotion period as pricing it highly will ensure customers to perceive it as highly-valued and eventually one of the market leaders in the long run.
Whisky may belong to either shopping good or specialty good category. Shopping good is where consumers usually compare several brands or stores on styles, quality and prices before buying, while specialty good is where consumers are willing to search extensively and travel great distance for as they are reluctant to accept substitutes. Most shopping goods has a elastic demand where it has a significant number of substitutes and faces more competition by rival firms. Hence, price of whiskey B should be lower to reap higher total revenue. Conversely, if consumers view whisky B as a specialty good, it will most likely have a inelastic demand, where price should be raised instead of drop so as to increase total revenue.

Competition level varies for different countries and market whisky B has entered. If company of whisky B is the only one seller of whisky which has no close substitute in the market, it is a monopoly and thus enjoy more freedom in price setting. In this case, it will have a inelastic demand where it will make more returns when the price is raised. However, it can still lower its price as it enjoys freedom to do so.

In economic situations such as boom and inflation, purchasing power and desire of consumers increase and thus prices of whisky B can be increased to increase total revenue especially if it has a inelastic demand. On the other side, in situations such as recession and intense competition, purchasing power and desire decrease (for recession). The business objective to survive will override all other objectives and thus price should be set low to increase sales, especially for elastic demand.

As whisky B production is expanding to meet world demand, the firm will employ mass production to achieve economies of scale. This increases fixed cost incurred by the firm which needs a high demand to offset it. There might be a need for whisky B to reduce its price by offering discount especially in times of recession. On the other hand, if it incurs high variable cost, price needs to be raised to ensure revenue collected is able to offset high variable cost. Otherwise the company incurs losses and is not bale to meet its low fixed cost.
In conclusion, there are many factors which can affect the pricing policy of whisky B. The firm should weight the different factors before deciding the price. However, the price may have to change according to market conditions, time and at different countries. I would advise that price discrimination be practiced by whisky B as different markets have different elasticity and level of competition, etc. This is feasible as different prices can be set for the same product as it can separate the different groups of customers by geographical boundaries. The flexibility of price discrimination will ensure that the price will be tailored to suit different market, and thus work for the firm best interest.

LALALA. Happy new year eve to eveybody:) Friday after the whole CNY programme ended. hui and i went to AMK hub for shopping. The reason was hui hardly hangs out at AMK.
Hui got this rose from Yong Kit. Sadly to say to the the hot weather in singapore the rose became in this state. Poor Rose.

This was taken in the train. IT could be seen that the rose was in a extremely bad state and it was only a few hours after the whole cny programme ended. :( okays a short post for now to ensure this blog is not dead...hahas.

Wishing everyone a happy new year.

1st day Back in Penang

Some facilities on the coach I took to Penang, but I didt use it cuz songs on my HP would suffice. It cost $70 per ticket, damn expensive as compared to buying frm Malaysia, which is only RM$40++.

We reached there at 6.00 AM. Gosh, I was freezing when I got off the bus...Brr!

I love Kway teow teng!!! oh, Penang one of course. That's always the 1st food I eat when I go back. Plain looking as it is, it's unbelievable delicious. And it's unbelievable why Sg kway teow teng taste so much different in a bad way. Another thing is that the serving is more than it looks, cuz I ate a few bites before shooting.. haha.

After resting, we went out to eat. That's my mum and my aunty ( Ninth). Hmm, the best thing is that I get a free ride everywhere we go, but that the worse part too, because I dont know other ways to get ard in Penang.

Then we head to my da yee ma ( Greatest Aunt ) home. The toddler is my niece ! Gosh! she is heavy and well my mum says she looks like me when i was young. ~~~ And my cousin is already pressing me to buy her presents the next time I go back..that is a presure. But that is only when i start to earn $$.

My cousin and my niece. Cute larh~The aunties were passing photos of my niece ard and happily playing with her.

And they have 2 dogs - Ashlee and popcorn. Don't it seems a little sad.? Perhaps less attention was paid to them as the focus is on my niece. But dun wry, u ( the dogs) are still cute~~

After that, We headed to my another aunt place. I was happily playing Wii ( Resident Evil 4) until a power failure occur. I really had nothing better to do so I started taking photos. Hope it doesnt look too eerie. Then the youngsters ( my cousins ) went out to buy xmas wrappers at Gurney plaza..and it was when I realise that my cousin and my cousin gf is reading the twilight series too ! I squeek in delight at how popular it is truely, emergence of a common topic and the possibility of being able to read .

Too bad my hp batt went flat and I dun have my charger wif me to take pics of the xmas tree with plenty of presents lying below it. Such a pity that I didnt shoot the xmas presents xchange session. argh. But it was fun though we did that at 2 am. And I slept at 4 am.. this marks the 1st day of super late slping. And when i got back hm, i saw my uncle and aunt frm Ipoh. I heard that they came to see my sister, cuz she hasnt been back there for 10 years.

Lastly i dun think my hp gt auto roaming cuz i didnt receive any msgs at there. So sry that i didnt reply to those xmas greetings msges.

That's it for the 1st day back in Penang. Continue the rest soon, so stay tune !

Happy New Year 2009 to all readers ! Next yr will be a better year, at least I gona make it so and so can you. God bless you.

xmas wif my darlings.

Finally posted pics on blog. haha.

Now is jus 10 mins before i m setting off to Penang.

yes, penang laska, satay and fried kuay tio and etc is waiting for me.

Grow fat..? u wait, i gona stretch myself, my legs in particular. n perhaps dance whn i go bk there to burn off the fats. HA.

More important, i wana get my xmas present..perhaps Twilight? wahhaa.
But it not all that beautiful and sweet..there something i have been avoiding. I just hope that i can take it in grace - the looming fearing of sickness and departure.

ok..All da best to my readers. Mucks.~~

First time blogging together..

The first time we are blogging together.
Haha..LOL still did this at my (vic) house!!!
Hope that visitors of our blog will be pleased with the changes.
We just argued about the grammar and stuff.LOL lame...
Afterall it's the 1st time blogging together. WOOTS.

Tml shih hui will be setting off to Malaysia (Penang).
Vic whines that she will be lonely and accuses me of leaving her alone.
How could that be????? ( she's very busy with her schedule and stuff wad? )
Vic is giggling when i am typing this..LOL..

Hmm.. Wat more to lame??? Well, we have spent a lot of time on that lame collage..haha of course it doesn have legs..thus it is LAME!!! (Shih hui rolled her eyes and Vic is still giggling).
3 more days to Xmas. Shih hui and Vic wish everyone a merry merry xmas in advance.
Shih hui is upset that she had spent so much time blogging and it's only half saved. That was yesterday and she couldn let it go. Dotx...Should be all for now. Ppl pls miss shih hui till she is back...:P (Shih hui rolled her eyes again at what i have said).. All i want to say it is a secret.
Hahahahahahahahha!

Did u all feel cold??
I am sure u all do cos what is xmas without the cold season.
Artificial snow will fall if u all can imagine it..

Hahaha. Random post from Vic...Well so long i din update my sharing blog with hui:) It doesn mean that i have forgotten this blog...The above pic is a random pic. Still remembered that was my Xmas present from Hui. Shae gave it to me last year... Cute right? Hmm now i place it on top on my key board and keep playing with it whenever i use the computer...:)

Hahaha:) Few more weeks to Xmas. Currently stil haven really met up with hui as she is busy with her diploma..Outing should be real soon with Qing, lee and her... ytd reminded her to watch AVP..Long story but i know the one that was shown on chan 5 was the repeat of the PArt 1 of the movie. It is still AVP.. Insiders' joke..

Wahaahaha...I am the V...but my sis says the V is the Versus and i jolly well know that its a useless character..No role at all...:) Whatever it is, my name starts with V that's y..Hui is alien...hmm will do up this blog when i am free..just bear with the plain skin..

2 days before performance

Dance performance at Victoria Concert Hall

I always reflect upon what my dance instructor preeches, during the bus trip home.
In fact, i'll think ab what ppl and do when i m alone, especially comments about me.

It was really quite paiseh cuz i was being corrected for most of my moves.
Really very paiseh, cuz i cant really get wad he means, at time. So gona keep on doing.

Many times when ppl- parents, teachers and etc spot a mistake, they tend to send a wrong msg to the wrongdoer - "u r a failure", " you are a pest" , by either verbal or body language. THAT IS NOT GOING TO HELP, in rectifying the error. I was being victimised too.

Although the D.I was clearly disturbed or irritated by my repeated mistakes, the criticisms made wasnt a personal attack. He actually makes much sense and even notice details tt i have left out. So, i realise there's really a lot for me to improve on.

oh..i m actually feeling a little tense up for the performance, though not showing it directly. Goto stop here to catch my fav hongkong detective show. (on U, 10pm that one!) :)