Gloria Jeans’ is well known due to it is made by 100% natural ingredients which include home-made cookies, muffins, and any other sweet desserts.
The point here is that Gloria Jeans’ can not set a price that is too high because competitors will be attracted by potential profits and will follow by a lower price. After having taken all the important factors into consideration, there are five-price fixing approaches seem appropriate.
1.Cost Based pricing
One of the centred objectives of this project being to become the market leader in functional drinks, Gloria Jeans’ is willing to stay among the top competitors if not becoming the greater by achieving a certain target profit this could be obtained by establish a price that will largely cover variable and fixed costs while bringing tremendous profits
2.Value Added Pricing
Competitors and potential substitutes prices can also be part of the strategy. Having a higher price could make customers aware of the additional benefits and the higher quality of coffee. 3.Value based pricing
The company sets its target price based on customer perceptions of the product value. The targeted value and price then drive decision about product design and what cost can be incurred. As a result of pricing begin with analysing consumer needs and value perceptions and price is set to match consumer perceived value. 4.Market Penetration Pricing
The company can set a low price for a new product in order to attractive a large number of buyers and a large market share. 5.Break-even Pricing
The company has to make some strategies for break-even prices, setting prices to break even on the cost of making and marketing a product or setting prices to make a target profit. According to the report of Su, Chiou and Chang (2006), the case study of Starbucks coffee displayed that Western culture adoration can influence the coffee consumption of Taiwan. Kim (2002),point at consumer behavior have significant influenced by the product-of-origin and brand image. Hao(1998), states that superior brand has become the most important element to enhance value-added products and it also is a strategy. The brand image and product-of-origin would important factors, they would provide insights on cross-culture marketing.
According to the survey, women more desire to drink coffee than men (Jones, 2006).There is no significant difference between two groups of people. Coffees are all thousands of years ranging from adults or even older. It’s hard to resist the appeal of Coffee, and there is great opportunity to tea growing up. In addition, the social behaviour are one of the factors segmented coffee products in the market Because of different group has different demand for their need and wants. The high salary people may more focus on their healthy or willing to pay higher prices.
3） Political and legal
Doing coffee business there is no risky for the company because of it does not related any political and legal