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Team Exercise

Background information
Assume that you are the owner of a busy sandwich bar on a university campus. There are
four other concessions in the central hub where your kiosk is located. The normal price for a
sandwich and a large drink is $10. The other concessions offer similar options from $9 5 to
$12. You have just read a flyer distributed by one of the other concessions. They are
launching a customer loyalty program. If customers collect four stickers in a given week,
their fifth meal will be free. You note that the concession is advertising their lunch packages
for $12.50. This means that one of their regular customers will net them $50 per week. This
is exactly the same as our pricing across a five-day week. The problem is that the loyalty
program will lock in potential customers.

Team Activity
Assemble a group of four or five people. Each group should develop a general strategy for
responding to competitors price and promotion changes. Be sure consider the following
factor:
a. How price change affect the demand for your product is affected by price changes
b. The number of competitors selling the same or a similar product
c. The methods you can use—other than price—to attract new costumers and retain
current costumers.

Follow Up Question
1. What form of competition best characterizes this market?
Karena tertera diteks tersebut bahwa terdapat beberapa penjual (4 penjual) dan
banyak pembeli dan juga barangnya bersifat homogen dan bisa menggantikan
(sandwich dengan rasa yang berbeda), maka menggunakan pasar oligopoly karena
dimana terdapat beberapa penjual dan banyak pembeli, yang mana masing masing
barang/produk tersebut bersifat homogen dan dapat menggantikan. Dibutuhkan
strategi/promosi dan juga pemasaran untuk bisa bertahan di pasar ini.
2. Develop specific pricing strategies based on each of the following situations :
a. A month after introducing the promotion, the competitor increases their daily
average price to $13.50
 Tetap berada pada harga $10 yang mana harga tersebut adalah harga normal
untuk sandwich dan minuman, apabila pesaing meningkatkan harga menjadi
$13.50 maka itu adalah kesempatan kita untuk menarik pelanggan sebanyak
banyaknya.
b. Two of the other concessions launch a joint venture promotion offering the same
deal as the competitor, only customers can collect stamps from either
concession to claim a free meal
 menggunakan strategi “buy 3 get 1” atau beli 3 gratis 1. Dengan adanya
promo tersebut, pelanggan lebih tertarik ke kios kita. Atau bisa dengan strategi
“buy 4 discount 5%” atau beli 4 diskon 5% yang pasti akan menarik banyak
pelanggan.
c. The fourth concessions drops their lunch menu average price to $8.50
 tetap berada dalam harga $10 tetapi bisa diakali dengan adanya promo
promo, seperti “buy 3 get 1” atau beli 3 gratis 1 atau bisa juga dengan “buy 4
discount 5%” yaitu beli 4 diskon 5%, pasti pembeli juga akan tergiur dan datang
ke kios kita.
d. After two months the fourth concessions close, there are rumors that a national
chain is interested in the concessions
 dengan adanya rumor tersebut, kios kami dituntut untuk lebih berinovasi
dalam memproduksi suatu produk semisal contohnya, sandwich diberi rasa keju,
minuman seperti cheese tea, dll. Agar para pembeli tertarik membeli produk
kita.
e. All five conssesions, including you, are noticing the sales are down. You discover
that someone has set up a “street food” mobile canteen outside the campus.

3. Discuss the role that various promotions other than price might play in affecting
demand and supply in this market!
Dengan memberikan potongan sebesar 5% untuk pembelian minimal 4 paket,
sehingga bila membeli 4 paket harganya menjadi $9 dan juga kulitas barang dan
pemasarannya ditingkatkan agar selalu mencuri perhatian pelanggan
4. How can a company compete on a non-price basis and still retain or grow market
share?
Dengan selalu mempertahankan kualitas dan meningkatkannya sehingga
kepercayaan pelanggan terjaga bahkan akan semakin percaya