BUS-FPX3062 Study Guide - Quiz Guide: Capella University, Houston Chronicle, Energy Drink
Document Summary
After evaluating the different types of pricing strategies, along with red bull"s pricing strategy, i believe that red bull uses the value-based pricing strategy to sell its products. When a company uses a value-based pricing strategy, it means that they are setting its prices according to what consumers think its product is worth (profitwell, 2021). Instead of looking inwardly at your company or laterally toward competitors, value-based pricing gives you an outward look. (profitwell, 2021). Despite having so many competitors in the energy drink market, red bull continues to remain on the top. Although a can of red bull is more expensive than most of its competitors, consumers will flock to red bull because of the quality of the drink, even though it is more expensive. Being on the top, they can easily charge a premium for their products, and customers will even buy them for their quality.
