Price-related promotions
Amstel can
be bought in different cans and bottles. You can buy Amstel in a crate with 24
bottles, in a six-pack with six bottles or cans and some in some other forms.
All supermarkets and retailers use discounts to get more clients and to sell
more products. There is very often a discount on beer, which is very attractive
for customers. An example of a discount on beer is the second crate for halve
of the price, or just a 5 euros discount on a crate. These discounts are
promoted in different ways. There are many advertisements on the television,
and also in magazines you can find the discounts of the supermarkets.
Pricing tactics
The supermarkets
use different pricing tactics for the product Amstel. They use discounting, and
as I explained above they use it to lure customers to buy more of their
products. Another pricing tactic they use is odd value pricing. This means that
it looks like the product costs 4.99 euros, but you pay 5 euros. They use this
tactic because then the product looks cheaper, and so customers will buy it
sooner.
Influence of the marketing mix on the price
Some P’s from the 4 P’s of the marketing mix have
influence on the price of a product. Product has influence on the price because
it depends on what kind of product it is. The second P, Place, also has
influence on the price of the product because supermarkets in the centre of a
large city can be more expensive than the supermarkets in smaller towns. The third
P, Price, obviously has influence on the price of the products. The fourth P,
Promotion, also has influence on the price, because the more promotion is
needed for the selling of the product the more expensive the product will be.
Price differentiation
The company
that produces Amstel, which is Heineken, does not use price differentiation.
Price differentiation means that they have different prices for different
segments of customers. Heineken does not use price differentiation, because for
every customer the beer has the same price.
Price elasticity
Beer is in
general an inelastic product. That means that the demand of beer will not
really change if the price of the beer gets higher. In 2010 the price
inelasticity was -0.35, which means that the price decreased with 3.5% and the
demand increased with 10%. The price elasticity of beer nowadays will be a
little different, because the price of beer became higher the last few years.(Geniet-met-Heineken, 2012)
Manufacturer influence on consumer price
The
manufacturer is the one that produces the beer. He could for example replace
people for machines, which is cheaper and can be calculated in the price.
Another way could be to find a way to decrease the price of the ingredients of
the beer. This could again be calculated in the selling price of the beer.
Bibliography
Bibliography
Geniet-met-Heineken.
(2012). Antwoorden Deelvragen. Retrieved January 10, 2017,
from Geniet-met-Heineken: http://geniet-met-heineken.webnode.nl/schrijf-ons/
