Calm is a leading brand in the sleep, meditation and relaxation category which I came across through its viral "do nothing for15 seconds" commercial
After reading/reviewing Chapter 11 (Manage Pricing Decisions) on the meditation app market, Alex Tew and Michael Acton Smith, Calm co-founders, would like to hire you to design/develop a strategic pricing and tactical pricing strategy for its app. Currently, a Calm subscription costs $69.99 a year and is proud that the apps been downloaded 80 million times. But, they are concerned their increased competition from Headspace, Reflectly, and others in recent years.
As part of this project, Alex Tew and Michael Acton Smith would like for you to review and draw on the pricing-related marketing information highlighted.
As I had noted in this week's presentation (and also underscored in Chapter 11), a price of a product/service only makes sense in the context of its "perceived value" (to a customer, stakeholder, etc.) while value is "a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits".
EDITORIAL STYLE
produce a business memo (800 - 1,000 words, single-space
Chapter 11 LEARNING GOALS Understand the integral role of price as a core component of value Explore different pricing objectives and related strategies Identify pricing tactics and describe approaches to setting the exact price Price Is a Core Component of Value Value is a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. Price, or more specifically, the customer's perception of the offering's pricing, is a key determinant of perceived value. Developing a pricing strategy requires the synthesis of branding product decisions, service approaches, supply chain, and marketing communication. EXHIBIT 11. Elements of Setting the Pricing Strategy (Pg. 294) Establish Pricing Objectives and Related Strategies supply chain, and marketing communication. EXHIBIT: Elements of Setting the Pricing Strategy (pg. 294) Establish Pricing Objectives and Related Strategies Select Pricing Tactics Set the Exact Price Determine Channel Discounts and Allowances Execute Price Changes Understand Legal Considerations in Pricing EXHIBIT 11 Generic Price-Quality Positioning Map (pg. 298) High Price Feasible Positions Low Quality Feasible Positions High Quality Feasible Positions Low Price EXHIBITI Tactical Pricing Approaches (pg. 299) EXHIBIT 14 Tactical Pricing Approaches (pg. 299) Product Line Pricing Auction Pricing Captive Pricing EDLP and High Low Pricing Price Bunding Pricing Tactics One-Price and Variable Pricing Reference Pricing Odd/Even Pricing Prestige Pricing Determining Channel Discounts and Allowances Cash Discounts Promotional Allowances Trade Discounts Seasonal Discounts Quantity Discounts Legal Issues in Setting Prices Discounts Discounts Legal Issues in Setting Prices Legal Considerations Price Fixing Price Discrimination Deceptive Pricing Predatory Pricing Fair Trade and Minimum Markup Laws CHAPTER 12: MANAGING MARKETING CHANNELS TIL EXHIBIT 14 Tactical Pricing Approaches (pg. 299) Product Line Pricing Auction Pricing Captive Pricing EDLP and High Low Pricing Price Bunding Pricing Tactics One-Price and Variable Pricing Reference Pricing Odd Even Pricing Prestige Pricing Determining Channel Discounts and Allowances Cash Discounts Promotional Allowances Trade Discounts Seasonal Discounts Quantity Discounts Legal Issues in Setting Prices Teal Considerations Chapter 11 LEARNING GOALS Understand the integral role of price as a core component of value Explore different pricing objectives and related strategies Identify pricing tactics and describe approaches to setting the exact price Price Is a Core Component of Value Value is a ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefits. Price, or more specifically, the customer's perception of the offering's pricing, is a key determinant of perceived value. Developing a pricing strategy requires the synthesis of branding product decisions, service approaches, supply chain, and marketing communication. EXHIBIT 11. Elements of Setting the Pricing Strategy (Pg. 294) Establish Pricing Objectives and Related Strategies supply chain, and marketing communication. EXHIBIT: Elements of Setting the Pricing Strategy (pg. 294) Establish Pricing Objectives and Related Strategies Select Pricing Tactics Set the Exact Price Determine Channel Discounts and Allowances Execute Price Changes Understand Legal Considerations in Pricing EXHIBIT 11 Generic Price-Quality Positioning Map (pg. 298) High Price Feasible Positions Low Quality Feasible Positions High Quality Feasible Positions Low Price EXHIBITI Tactical Pricing Approaches (pg. 299) EXHIBIT 14 Tactical Pricing Approaches (pg. 299) Product Line Pricing Auction Pricing Captive Pricing EDLP and High Low Pricing Price Bunding Pricing Tactics One-Price and Variable Pricing Reference Pricing Odd/Even Pricing Prestige Pricing Determining Channel Discounts and Allowances Cash Discounts Promotional Allowances Trade Discounts Seasonal Discounts Quantity Discounts Legal Issues in Setting Prices Discounts Discounts Legal Issues in Setting Prices Legal Considerations Price Fixing Price Discrimination Deceptive Pricing Predatory Pricing Fair Trade and Minimum Markup Laws CHAPTER 12: MANAGING MARKETING CHANNELS TIL EXHIBIT 14 Tactical Pricing Approaches (pg. 299) Product Line Pricing Auction Pricing Captive Pricing EDLP and High Low Pricing Price Bunding Pricing Tactics One-Price and Variable Pricing Reference Pricing Odd Even Pricing Prestige Pricing Determining Channel Discounts and Allowances Cash Discounts Promotional Allowances Trade Discounts Seasonal Discounts Quantity Discounts Legal Issues in Setting Prices Teal Considerations
