Pricing and Branding Strategy.

Pricing strategy:
D. Pricing
Competitive Position
The average price of Lock & Lock products ranges from Php 1,000.00 1, 500.00, while
Thermos products ranges from Php 1,500.00 3,000.00. Note, however, that these
brands have long been established, and their names are already familiar and their
products quality already trusted in the market. On the other hand, Life in a Box is still in
the introductory phase. To make up for such disadvantage, Life in a Box combined both
the features sought after these two brands (i.e, silicon tight and heating features),
improved it, and added features that distinguish the companys lunchbox among its
competitors (cooling and charging feature). More importantly, the company aimed to
price the lunchbox in such a way that it is still able to compete with its competitors whilst
making it more affordable against it competitors. As such, Life in a Boxs products
ranges from Php 999.000- 1,500.00.

Price Strategy
Life in a Box comes in 3 different packages, namely the Entry Package, Adventure
Package, and the Professional Package. The specific contents of each package are
discussed above, in the packaging section. These packages aim to serve the wide
ranged target market of Life in a Box and priced at prices that suit the target markets
budget while maintaining a competitive position against its competitors.

Entry Package
The Entry Package is more specifically described above, in the packaging portion. This
package, priced at Php 999.00, caters to students from private schools and office
workers with a limited budget. As the results of the survey show, this is the price that the
market deems as most affordable and will willingly pay for, given the features that the
product offers.

Adventure Package
The Adventure Package, priced at Php 1, 200.00, caters to outdoor enthusiasts
and lifestyle specialists, specifically those highly engaged in health and fitness. Having
the means to travel, go to the gym, and engage in outdoor activities, these portion of the
target market are within the middle to upper class status in the society. As such, and
given the features that will make their activities more convenient, the price is reasonable
and affordable, more so compared to the products competitors which do not possess
the features to be sought after by outdoor enthusiasts in Life in a Box.

Professional Package
The Professional Package, priced at Php 1, 500.00, caters to office workers,
specifically those in the supervisory, management, and executive positions with a
monthly income of Php 30, 000.00 and above. This portion of the target market are
those that can afford to eat out everyday, but opts to bring packed lunches to work
because they still have an inclination to save money and for a healthier living option due
to age.
Pricing Strategy:
1. Pricing for Market Penetration
Penetration strategies aim to attract buyers by offering lower prices on goods and
services. While many new companies use this technique to draw attention away from
their competition, penetration pricing does tend to result in an initial loss of income for
the business.
Over time, however, the increase in awareness can drive profits and help small
businesses to stand out from the crowd. In the long run, after sufficiently penetrating a
market, companies often wind up raising their prices to better reflect the state of their
position within the market.
Rationale:
Life in a box chose to implement this strategy because it is relatively small and new
company which is not yet well-known as a competitor in the market. By doing so, life in
a box will be able to penetrate the existing market and gain recognition as a significant
competitor in the market that would result to the regaining of the initial income loss due
to its low pricing on goods and services. By penetrating the market and becoming
recognized as a major competitor, life in a box will increase the awareness of the
consumers in the market and the unique innovation it offers will stand out in the crowd
as compared to the common functions that are offered by its competitors that already
exist in the market. Lastly, once life in a box effectively penetrates the market and gains
recognition, it would be able to either increase the prices or maintain its original pricing
in order to maintain consistency and satisfaction among consumers.
2. Bundle Pricing
With bundle pricing, small businesses sell multiple products for a lower rate than
consumers would face if they purchased each item individually. Not only is bundling
goods an effective way of moving unsold items that are taking up space in your facility,
but it can also increase the value perception in the eyes of your customers, since youre
essentially giving them something for free.
Bundle pricing is more effective for companies that sell complimentary products. For
example, a restaurant can take advantage of bundle pricing by including dessert with
every entre sold on a particular day of the week. Small businesses should keep in
mind that the profits they earn on the higher-value items must make up for the losses
they take on the lower-value product.
Rationale:
By implementing the bundle pricing strategy, life in a box ensures that all its different
packages are of high demand equally due to the fact that if customers opt to buy a
bundle, all the packages would be easily patronized. It would also help balance the
inventory of the company by selling the least patronized package along with the most
bought product, it would balance all the inventories evenly and effectively remove the
unsold items that take up too much space in the facility. It also increases the value
perception for life in a boxs product packages because it give the customers in the
market the impression that they are getting something of additional value as compared
to purchasing a single package at regular price. Lastly, using this strategy is effective for
covering the losses made on low-priced products through the profits received on high-
priced products and packages or vice-versa.
Sources:
http://quickbooks.intuit.com/r/pricing-strategy/6-different-pricing-strategies-which-is-
right-for-your-business/

E. Branding

HOME IS WHERE THE FOOD IS

Life in a Box aims to bring the comfort of ones home and kitchen
wherever he goes. It transforms mundane lunch breaks to eating indulgence, bringing
quality not only to the food but to the eating experience itself. It takes cold lunches that
merely satisfies the basic necessity of hunger to a different level: the fresh, heated, food
that gives energy and satisfaction the customer needs to face the everyday tasks of life.
No matter what 5 star restaurants Filipinos go to, they will always come back and crave
for home-cooked meals. Filipinos, in essence, are wais and matipid. They are always
looking for ways to save money. Consequently, bringing lunch boxes to school and to
work are deeply integrated in the Filipino culture. It is not only economical, but it also
stirs the emotion that the customer is loved and cared for, enough for someone to
prepare them baon. Eating their baon reminds them of their loved ones, the ones
theyre saving their money for, the ones that give them inspiration to study and work. It
reminds them that they have someone to come home to, the very ones that give
meaning to their life. Home-cooked meals also bring nostalgic memories of childhood,
when their mothers used to call them for lunch and dinner, and they will happily come to
the table and find their favorite dishes. With Life in a Box, such feeling that the food
brings can no longer be found just at home. Home can be taken and can be found,
anywhere, anytime because home is where the food is.

The color orange symbolizes the warmth of ones home, which is the feeling that Life in
a Box intends to bring, while the color green symbolizes the healthy lifestyle enabled by
bringing carefully thought out meals wherever they go.

7 Essentials for a Strong Company Brand:

Purpose

Functional:
Life in a Box aims to bring the comfort of ones home and kitchen wherever he goes. It
transforms mundane lunch breaks to eating indulgence, bringing quality not only to the
food but to the eating experience itself.

Intentional:
Life in a box takes cold lunches that merely satisfies the basic necessity of hunger to a
different level: the fresh, heated, food that gives energy and satisfaction the customer
needs to face the everyday tasks of life. No matter what 5 star restaurants Filipinos go
to, they will always come back and crave for home-cooked meals. Filipinos, in essence,
are wais and matipid.

Consistency

Life in a box seeks so maintain its position as a company that provides an innovative
and unique product that is not found elsewhere in the market and that it ensures the
comfort, convenience and affordability to meet the needs of the public.
Life in a box also seeks to maintain consistency by relying on the fact that bringing
packed home-cooked meals has always been a Filipino tradition that has been deeply
rooted in society.

Emotion
Life in a box relies on the factor of nostalgia as gives the customers nostalgic feelings
by bringing packed meals that remind them of their childhood, their loved ones and all
the pleasant memories attributed to the baon concept. With Life in a Box, such feeling
that the food brings can no longer be found just at home. Home can be taken and can
be found, anywhere, anytime because home is where the food is.

Flexibility
Life in a box seeks to retain its original objectives and long term goals while also
providing new aspects in order to accommodate more consumers in the form of new
packages and better price stability as time goes by.
Life in a box is also flexible in the sense that it offers all the functions of its competitors
products and merges those functions into a single innovation not otherwise found in the
market.

Employee Involvement
By utilizing all the ideas of the employees, Life in a box seeks to further gain brand
recognition through the process of making sure all opinions and suggestions of the
employees matter. By doing so, the company allows any form of feedback or suggestion
from employees to ensure better progress.

Loyalty
Life in a box seeks to establish customer loyalty by providing customers the opportunity
to have free bonuses during the initial price margin of life in a box. By doing so, the first
batch of purchasers are given a sense of entitlement and would most likely stay as loyal
customers especially when the product lowers its price after the initial skimming stage.

Competitive Awareness
Life in a box pursues to maintain its advantage over competitors by reinforcing its
unique function and features that has an edge over the competitors. By doing so, life in
a box guarantees to maintain its recognition because it is an innovation in itself.
Sources:
https://blog.hubspot.com/blog/tabid/6307/bid/31739/7-Components-That-Comprise-a-
Comprehensive-Brand-Strategy.aspx