Product strategy Case Study Example | Topics and Well Written Essays - 750 words

Product strategy - Case Study Example The following discussion seeks to implement the beverage, grocery, and baking industry pricing practices. The industry firms embark on a process of innovating and producing products that will achieve the desired responses. The IBIS World research report indicates that the companies present in the industry embark on customer-value oriented strategies in order to acquire their long-term goals and objectives (Stark, 2007). For example, Coca-Cola and Pepsi companies engage in the production of soft drinks in flavors best favored by different consumer groups. However, the companies embark on the use of credible pricing strategies in reflection to the market’s consumer needs. Notably, soft drinks manufacturers and grocery wholesalers engage in price-penetration strategy to ensure that their market segments grow competitively. The research study indicates that Coca Cola’s growth rate is overwhelming compared to its competitor, Pepsi that currently stands at a -1.7% (Ibis World Reports, 2014). On the other hand, retail and wholesale chains that grow, produce, and sale groceries an d baked products reveal similar pricing practices. For instance, Wal-Mart and ASDA retail stores have acquired profitable market segments and subsequent growth rates from the market due to the use of price-penetration strategies (Levin, & Kalal, 2003). The companies present in the food industry seems to implement similar objectives. For example, the companies realize that growth and diversification of investments remain a beneficial strategy since it enables businesses to enjoy economies of scale (Ibis World Reports, 2014). Asda Retail chains engage in market-penetration strategies and the use of low prices to increase their consumer-value responses. It is evident that the companies practice the use of high quality production practices to sell at medium prices to the customers (Levin, & Kalal, 2003). The