Sunday, November 3, 2019

Audis pricing strategies in UK Essay Example | Topics and Well Written Essays - 500 words

Audis pricing strategies in UK - Essay Example In order to understanding of how strategies have been applied by Audi, the section below provides a discussion of each of them. Audi has applied the price discount strategy by offering their vehicles at prices lower than the list prices (Nieuwenhuis, 2003, p. 189). The company also offers quantity discounts for suppliers purchasing vehicles in large quantities. For instance, S6 model may be retailing at a price of  £53,995 but customers buying in large quantities are offered a lower price of around  £53,000. This strategies aims at encouraging customers to buy in large volumes because there is the benefit of getting reduced prices for each unit. Sometimes a customer may make a credit purchase which takes some time to settle. Audi offers discounts for customers paying within a specified time period so as to encourage them to pay without much delay. Audi offers a variety of models that have unique features. Therefore, the company charges different prices for each of the models in order to reflect the benefits that customers can derive from each of them (Nieuwenhuis, 2003, p. 178). For instance, the S6 model will be offered at a price of  £53,995 while Q5 is offered at a lower price of  £31,880. This means that at a higher price of  £53,995, a customer will enjoy the use of a V8 engine that has deactivation technology. Going rate pricing strategy is applied when a company introduces prices similar to its direct competitors. Examples of Audi direct competitors include BMW, Aston Martin, and Chevrolet. The company has priced some of its model within the same range of what the direct competitors are offering. For instance, the Audi R8 is going for  £91,975 while the Aston Martin retails at  £90,995. Audi has a significant competitive advantage in the UK market in form of highly technology. The company is planning on introducing new S models that will have a unique feature of a V8 that

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