IMC PLAN For Door to Door Transportation Service Essay

IMC PLAN For Door to Door Transportation Service - Essay Example The target customers are concerned with â€Å"get† component and monetary price are not mainly of monetary concern. Thus Double M will adopt the pricing strategy based on the perspective of customer â€Å"Value is everything I want in a service† and adopts the prestige pricing strategy (Zeithaml, 550). Prestige pricing is a form of demand based pricing strategy which offers high quality services; Double M also aims to provide its target customers with high quality service along with a sign of status. The demand increases as price increases because it is believed that the costlier the service is the more value it has. Analyzing the customer base, it can be assumed that they are willing to spend in order to travel comfortably for daily activities, for their families and the senior members along with the institutional. Therefore the price charged will be high by Double M and will aim to provide value for its service to the target customers. If a normal rate of bus service is $10 assuming it to be the minimum fare, Double M would charge $20-$25 as its minimum fare for its door to door service and maximum would amount to $45 to $50 depending upon the distance and service. The primary pricing objective of Double M is to build demand and achieve minimum level of revenue and build a user base which is extremely important for service such as door to door transportation service as its new and it needs to generate revenue so to maintain itself in the industry. Pricing objective are important as pricing strategy depend on pricing objectives of the company. The pricing objective should be in line with the goals and objectives of the organizations (Petzer, 221). 25 cost items which tends to make up the price of the product includes, price of raw materials such as automobile parts, tiers, set covers, paint, design, lights, electricity, labor, fuel, terminals, maintenance, administrative, roadways, construction charges, salaries of lower level which varies, fuel taxes, weight mile taxes, trolls and marketing cost such as advertisements, promotional cost, printing cost for hoardings and pamphlets. Since the company has an option of online business other cost would include, website cost, design, up gradation and maintenance cost of the website. The target customers of Double M are not price sensitive because they want a service that will provide them with comfort and with an accurate satisfaction level. Since the target customers are mainly the daily commuters and their families, the need of safety and comfort will be valued highly by the customers. Similar is with the organizations, who would value the service rather than the price of the service charged. Hence it can be said that the target customers are not price sensitive and demand is inelastic. Irrespective of the prices charged or any changes taken place the customers would prefer to travel through door to door transportation service. Pricing strategy tends to include various promotion al techniques in order to attract the target customers and create a place in the market and in the minds of the customers. Double M would also adopt the promotional techniques as part of its marketing plan. During the launch of the service, Double M would go for promotional pricing and would offer certain percentage of discount for its travelers during the first month of its service along with added facility such as dropping the family members at 20% discount rate. This way the