Price (Penetration strategy)


Price:

a penetration pricing strategy would be most effective and  advantageous pricing strategy to implement. The current climate within the café industry has become oversaturated and currently has a high number of entrants, which has forced current industry leaders to find other alternatives to provide coffee to a new target market by creating drive thru. Some of Merlo’s competitors such as Gloria Jeans are a step ahead of Merlo with a drive-thru, however, there are advantages to starting after as Merlo can benchmark itself against Gloria Jeans and see what they can improve, as there is a possibility to gain new customers from other competitors.  

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