LITE CO.

Strategic Pricing Pyramid

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 Table of Contents

Introduction …………………………………………………………………………………….. 3

Value Creation …………………………………………………………………………………. 4

Price Structure ……………………………………………………………………………...…. 4

Price & Value Communication ……………………………………………………………….. 5

Pricing Policy …………………………………………………………………………………... 5

Price Level ……………………………………………………………………………………... 6

Conclusion ……………………………………………………………………………………... 8

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Introduction

LITE Co. is a pioneering company that specializes in using recycled paper, creating a
sustainable lampshade that provides lighting solutions for modern living spaces and
built-in storage drawers. The company’s innovative product design focuses on
environmental responsibility, versatility, and aesthetics, offering a unique blend of
lighting solutions, lifestyle, and functionality. The company’s dedication to incorporating
recycled paper in lampshades reflects the company’s vision and mission to create
environmentally conscious products. LITE Co. aims to create and offer sustainable and
functional lampshades. It provides lighting solutions, aesthetics, and eco-friendly
materials with built-in storage. Thus, using recycled paper, the company and its founder
reduce waste, conserve natural resources, and contribute to the circular economy by
giving new life to materials that would otherwise be discarded. Our lampshade design
and sustainability will create a solution to enhance the livelihood of students, people,
and designers. The goal is to revolutionize the recycled paper material and lampshade
industry and set new sustainable design and functionality standards. Thus, this is a
popular choice for homeowners, interior designers, real estate, and businesses. The
founders believed they could offer a unique product that would resonate with consumers
seeking style and ecological responsibility through innovative design and
environmentally conscious materials.
The goal of LITE Co. is to grow locally and internationally. This can be done by
expanding through collaboration with retail partners and loyal customers and
establishing distribution channels. By collaborating with home decor, interior designers,
or online marketplaces, our sustainable decorative lighting solution will reach and tap
into the broader customer base. Additionally, LITE Co. will attempt to broaden its
product range beyond lamps in the expansion process. As we go along on our business
journey, we hope that this diversification effort has the potential to capture and help a
larger portion of the market and foster brand awareness.LITE Co. firmly adheres to its
goals and objectives that our business and product will provide solutions for filling the
gap for sustainable decorative lighting solutions. Due to the increased emphasis on

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sustainability, eco-consciousness, and design and style demand, there will be a
continued demand for environmentally friendly decorative lighting solutions with a touch
of innovation for its built-in storage drawer. Our customers, such as architects, interior
designers, students, and working people, can create a broader audience. These
aspects suggest that our achievements for our product will develop significantly during
the next few years.

Value Creation
LITE Co. specializes in creating economic value through creative, environmentally
friendly, and long-lasting decorative lighting solutions. The company delivers low-cost,
energy-efficient, and ecologically friendly lampshades. LITE Co. produces unique goods
that improve people's lives while decreasing environmental effects by using wood and
recycled paper in its crafting.
LITE Co. distinguishes itself in terms of design by developing lampshades that exude
beauty, warmth, and environmental responsibility. The utilization of novel materials and
an emphasis on sustainable procedures align with the desires of consumers for both
style and environmental responsibility. The company's commitment to design perfection
distinguishes it as an industry leader, and its lampshades serve a diverse spectrum of
consumers, including homeowners, interior designers, real estate, and corporations.
LITE Co.'s segmentation strategy contributes to value generation by targeting a diverse
consumer base. The organization ensures inclusivity and accessibility through
demographic, regional, and psychographic segmentation. The target market is
individuals aged 18 and up with a minimum income or allowance level of P1000
dedicated to affordability. LITE Co. focuses geographically on Alabang, Muntinlupa City,
and Metro Manila, capitalizing on economic prospects in these areas. Psychologically,
the company targets customers looking for visually appealing, comfortable, and
motivating lighting alternatives. The company's segmentation approach is aligned with
the strategic price plan, allowing LITE Co. to offer its innovative and eco-friendly lighting
solutions to a broad consumer base. LITE Co. intends to obtain a greater market share,
boost brand awareness, and contribute to global sustainable practices by widening its
product line beyond lamps and growing abroad. The company's ability to balance
self-sufficiency and openness to external investment demonstrates a smart approach to
future expansion and market impact.

Price Structure
LITE Co. prioritizes metrics, gates, and controls to create a well-rounded pricing
strategy that matches its dedication to sustainability and innovation. In terms of metrics,
the company carefully evaluates production costs, including materials and labor, to
ensure a thorough grasp of the costs associated with crafting its eco-friendly
lampshades. This rigorous cost analysis is the foundation for pricing decisions, allowing
LITE Co. to set competitive yet profitable prices that reflect the value of its distinctive,
long-lasting products. Volume-based pricing for bulk purchases is an important barrier in
LITE Co.'s pricing strategy. The company encourages wholesale purchasers by offering
incentives for larger orders, contributing to higher sales and market penetration. Loyalty
discounts for returning customers enhance customer relationships and encourage

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repeat business. These barriers help the company retain customers and increase its
market reach.
Regarding controls, LITE Co. takes a dynamic approach to pricing, assessing and
modifying prices regularly based on market trends and fluctuations in manufacturing
costs. This versatility enables the corporation to respond to changes in the business
environment while keeping prices competitive and consistent with value offers.
Monitoring competitors' pricing strategies is also essential to LITE Co.'s control
measures. The company maintains its competitive edge and strategically positions itself
within the industry by being updated about market dynamics and modifying pricing
accordingly. LITE Co.'s pricing strategy is a well-balanced mix of thorough cost
research, strategic barriers like volume-based pricing and loyalty incentives, and
watchful controls that respond to market developments and competition activities. This
approach supports the company's dedication to sustainability and positions it
competitively in the market, ensuring that its creative and eco-friendly decorative lighting
solutions are available to a wide range of customers.

Price and Value Communication

LITE Co. stands out in the market by providing a unique product that flawlessly
combines innovative design, eco-friendliness, and practical usefulness. Their
lampshades, made from recycled paper and wood, have a built-in drawer, giving
consumers a unique combination of lighting and practical storage. LITE Co. should
clearly describe the benefits of having a lampshade with an integrated drawer to
correctly market this new product's value. Using various advertising platforms such as
social media, trade events, and exhibits can help to showcase visually appealing
information that promotes the product's eco-friendly features and practical utility. LITE
Co. should invest in product knowledge training for its salespeople to improve value
communication. Providing the sales staff with a thorough understanding of the product
and persuasive tools will enable them to express the unique selling proposition during
sales encounters effectively. This method ensures that potential buyers are presented
with a captivating and well-informed story about the lampshades, creating a greater
appreciation for their features and benefits. LITE Co. not only effectively communicates
the value of its product but also establishes a distinct differentiation from competitors in
the market, positioning itself as a leader in the creative, eco-friendly lighting solutions
domain.

Pricing Policy
The pricing policy given for LITE Co.'s Lampshade Lampel or Lampel emphasizes the
importance of a strategic pricing approach that considers profitability and market
factors. Market research and an in-depth assessment of production costs point to the
probable implementation of a cost-based pricing model, indicating a commitment to
ensuring profitability in a competitive landscape. The pricing strategy's negotiation part
highlights the need for LITE Co. to identify clear criteria within which talks should take
place to preserve profitability. By granting flexibility to sales staff within these set
parameters, the company can balance addressing client wants and protecting its
financial interests, ensuring that deals align with overall profitability targets.

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LITE Co. is encouraged to use promotional strategies such as limited-time discounts or
bundling deals. The crucial idea, however, is to match these methods with overarching
marketing and sales goals. This strategic alignment guarantees that promotional
initiatives contribute meaningfully to the company's overarching goals, whether market
penetration or client retention. The strategy's discounting requirements are critical for
sustaining disciplined pricing policies. LITE Co. may protect its profit margins and
ensure that discounts are exploited wisely by creating specific criteria and avoiding
indiscriminate reductions. This is consistent with the overarching goal of increasing
market share or improving consumer loyalty.

Price Level
Setting a price level is a critical aspect of strategic pricing, and businesses typically
adopt one of four main approaches: Demand-Oriented, Cost-Oriented, Profit-Oriented,
and Competition-Oriented. The Demand-Oriented approach aligns prices with consumer
demand and perceived value, allowing businesses to adjust prices based on market
dynamics and customer preferences. On the other hand, cost-oriented pricing involves
setting prices by considering production and operational costs, ensuring that the product
or service covers its expenses while allowing for a reasonable profit margin. In contrast,
Profit-Oriented pricing emphasizes maximizing profits and shareholder value, often
involving a balance between cost considerations and revenue generation. Finally,
Competition-Oriented pricing involves setting prices based on the prevailing market
rates, ensuring that a business remains competitive within its industry. Each approach
has advantages and limitations, and the choice of a pricing strategy depends on factors
such as market conditions, industry dynamics, and organizational goals. Ultimately, a
well-thought-out pricing strategy is crucial for achieving profitability and sustaining a
competitive position in the market.

Price Level Strategy Description Implementation

- Conduct market research.

Align prices with
Demand-Oriented - Implement value-based pricing.
customer demand and
Pricing - Utilize dynamic pricing for
perceived value.
promotions.

- Conduct thorough cost analysis.

Set prices based on
- Add a markup for profit.
Cost-Oriented Pricing production costs,
- Regularly review and update
ensuring profitability.
prices.

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 Focus on maximizing - Set prices to achieve targeted
profitability while profit margins.
Profit-Oriented Pricing
considering market - Implement upselling and
demand. cross-selling strategies.

- Regularly monitor competitors'

pricing.
Set prices based on
Competition-Oriented - Position the Duo Function
competitor pricing
Pricing strategically.
strategies.
- Differentiate through features or
perceived value.

Lite Co. uses a complete pricing strategy considering four unique methods:
Demand-Oriented Pricing, Cost-Oriented Pricing, Profit-Oriented Pricing, and
Competition-Oriented Pricing. Lite Co. does extensive market research to align prices
with customer demand and perceived value while implementing Demand-Oriented
Pricing. This involves using value-based pricing and dynamic pricing for promotional
activities. The organization assures profitability with Cost-Oriented Pricing by
conducting extensive cost studies, adding a profit markup, and continually monitoring
and revising pricing to reflect changes in manufacturing costs. Profit-oriented pricing
focuses on maximizing profitability while taking market demand into account. To
increase revenue, Lite Co. sets prices to meet desired profit margins and employs
upselling and cross-selling methods. Lite Co. closely watches competitors' price
methods, strategically positions its Duo Function, and seeks differentiation through
features or perceived value in Competition-Oriented prices. Recognizing the importance
of integration and balance, Lite Co. takes a comprehensive strategy incorporating
components from all four methodologies. This enables the organization to be adaptable
and flexible, modifying price plans in response to market dynamics, competition
changes, or client preference adjustments. Lite Co. emphasizes customer value by
ensuring that the pricing of the Duo Function corresponds to its perceived importance,
providing customers with a compelling incentive to pick Lite Co. above competitors. Lite
Co.'s coordinated pricing approach is a strategic guide supporting market
competitiveness and consumer pleasure.

Conclusion
LITE Co. is dedicated to creating economic value through creative and ecologically
sustainable decorative lighting solutions. The company meets the growing demand for
sustainable yet visually beautiful products by providing low-cost, energy-efficient, and
environmentally friendly lampshades made of wood and recycled paper. LITE Co. is a
market leader because of its emphasis on design excellence, inclusivity through
segmentation, and a balanced pricing approach, including strategic obstacles and
controls. The company's drive for innovation extends beyond its products to its pricing
strategy, which relies heavily on measurements, gates, and management. The complete
pricing strategy used by LITE Co. provides competitive yet profitable rates, emphasising

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understanding manufacturing costs and modifying prices based on market trends. In
addition, to maintain a balanced and disciplined pricing structure, the corporation
strategically applies negotiation restrictions, promotional strategies, and discounting
criteria.
The combination of a lampshade design and a built-in drawer further distinguishes LITE
Co., offering customers a distinct variety of lighting and practical storage. To effectively
explain this value proposition, the company leverages multiple advertising platforms. It
invests in product knowledge training for sales personnel, ensuring that potential
consumers are informed and captivated by the product's innovative features.
Furthermore, the price policy for LITE Co.'s Lampshade Lampel or Lampel
demonstrates a deliberate approach considering profitability and market variables. The
company's emphasis on negotiation criteria, promotional strategies, and disciplined
discounting criteria indicates its dedication to sustaining profitability while addressing
consumer requirements and strategic objectives.
LITE Co.'s attention to sustainability, innovative design, and intelligent pricing
demonstrates its commitment to customer happiness, market competitiveness, and
long-term success. As the company expands its product offerings and reaches a global
audience, its integrated approach to value creation and pricing strategies will most
certainly contribute to retaining a solid market position and nurturing customer loyalty.