Marketing Management

Marketing Management

Mini Case Study1: Millersville Lions Club  

The Millersville Lions Club had successfully operated a community swimming pool for many decades. Memberships in the pool had been relatively stable for the past five years and the Lions Club had been able to cover increased operating costs with only small increases in the membership fees to use the pool. The club had also expanded the membership geographic area to include a much larger region, opening up the membership to far more people. 

A survey was conducted of the pool membership to determine how they felt about the idea of a second pool on the site. They were also questioned as to how much they would be willing to spend to support the new addition. The results were mixed with one group, mostly swim team parents, highly supportive and willing to pay a substantial increase, and another group of about equal size who didn’t feel the need and who were against any significant fee increase.

GW Reference: Marketing Management  by Philip Kotler, 2003, Edition11^th. Pearson . 

TASK: 

Form a group of 3-5 students, consider the following questions, share your thoughts among the group and respond - 

1.    How might the Millersville Lions Club pool make use of the concept of segmented pricing to improve upon their revenues?                                                            

2.        What types of optional-product pricing might the Millersville Lions Club pool use to improve upon their revenues?                                                                         

3.    What types of discounts might the Millersville Lions Club offer to improve upon their revenues?                                                                                                    

Mini Case Study 2: Lululemon Premium Pricing (10 Marks)

Lululemon has quickly risen to the top of a bustling market that it played a major role in defining. With approximately 400 stores around the world, Lululemon peddles its own brand of yoga-inspired apparel with its instantly recognizable logo—an iridescent lower-case “a” that resembles an “omega.” But far more than selling clothing, Lululemon inspires an image and a lifestyle. The company exudes the philosophy captured by its manifesto— “We are passionate about sweating every day and we want the world to know it. Breathing deeply, drinking water, and getting outside also top the list of things we can’t live without.” In other words, this brand is about active, healthy, back-to-nature lifestyles and isn’t shy about saying so. Premium price is typically a hallmark status brands. Lululemon’s signature article is the Groove Pant, priced at $98 which is high as compared to other top athletic apparel brands like Nike which sells which sells its most comparable version at $90 and Under Armour at $79.That image, complimented by a “no discounts” credo, has a fanatically loyal customer-base willing to buy everything Lululemon without any concern about the premium prices

1:  Relative to customer value, explain customers’ willingness to pay premium prices for Lululemon’s products. (6 Marks)

2: Explain how price affects customer perceptions of the Lululemon brand. (4 Marks)

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