COST LEADERSHIP STRATEGY

Nichole Angel Lei Gadon

3/13/2024
COST LEADERSHIP STRATEGY
COST LEADERSHIP STRATEGY
Letter Pendant Necklaces
Letter pendant necklaces are a type of necklace featuring a pendant
in the shape of a letter, often the initial of a person's name. These necklaces
can be made from various materials such as gold, silver, or stainless steel and
may be adorned with gemstones or other decorative elements. Personalized
jewelries started the fame of these letter pendant necklaces. As personalized
jewelry became more popular, designers and retailers began to offer a wide
range of letter pendant necklaces in different styles, sizes, and price points to
cater to varying tastes and budgets. These necklaces are now a staple in
many jewelry collections, offering a timeless and customizable accessory for
everyday wear or special occasions.

SHOPS
TBK MALL TALA BY KYLA MIKAYA

PRICE (in
99 152 159
PHP)
UNITS
10,000 + 10,000 + 4,500+
SOLD

Product A and B have the same units sold, despite their price differences. To be more accurate,
their monthly sales are 579, and 1,727 respectively. This indicates that the seller with the lowest
price (Vendor A) does not have the highest sales volume.

The reason Product B has higher revenue despite the higher price is likely due to factors such
as brand reputation, marketing efforts, product quality, and customer perception. These factors can
influence consumers to choose a higher-priced product over a lower-priced one, leading to higher
sales volume for Product B.
COST LEADERSHIP STRATEGY
Earbuds

Earbuds are small, compact, in-ear headphones that are typically

used for listening to audio from devices such as smartphones, MP3
players, and computers. Unlike traditional headphones that rest on the
ear or over the head, earbuds are inserted directly into the ear, providing
a more immersive listening experience and better noise isolation.
Earbuds have become increasingly popular due to their portability,
convenience, and improved audio quality. They are often used by
people on the go, such as commuters, joggers, and travelers, who want
to listen to music or other audio content without the bulkiness of
traditional headphones.

SHOPS
KEWEI YLMT.PH REALFIT OFFICIAL

PRICE (in
139 118 209
PHP)
UNITS
10,000 + 10,000 + 6,100+
SOLD

Product A and B again have the same total units sold. But to be more accurate, Product A has
monthly sales of 8,762 while Product B has 2,095. From the data, Product A, despite having a higher
price than Product B, has the highest sales volume. Customers may perceive a higher-priced item as
having higher quality or value, leading them to choose it over a lower-priced alternative.

Pricing can also affect perceived value. A significantly lower price compared to competitors could
raise suspicions about the quality or authenticity of the product, leading some customers to avoid
purchasing from that seller. Therefore, factors beyond just price, such as perceived quality and value,
can influence purchasing decisions and sales volume.
COST LEADERSHIP STRATEGY
Anello Backpack

The Anello backpack is a popular style of backpack known for its

distinctive design featuring a square shape and wide opening. The
brand Anello, was founded in 2005 and quickly gained popularity for
its functional and stylish backpacks. This bag ranges from Php 900 to
Php 2000, which is beyond the capability of an ordinary Filipino. The
brand's focus on quality materials and craftsmanship, combined with
its unique design, contributed to its success. As the Anello backpack
gained popularity, particularly in Asian markets, it also attracted
attention from other manufacturers and designers looking to capitalize
on its success. This led to the emergence of "dupes," or duplicate
products, which are similar in design to the original Anello backpack
but may be made from lower-quality materials and sold at a lower price point.

SHOPS
ASAPANA MALL MUMU ONANA

PRICE (in
499 379 379-459
PHP)
UNITS
6,800+ 1,100+ 2,600+
SOLD

In this case, the product with the lowest price, Product B, has the lowest sales volume compared
to the other vendors. This outcome might seem counterintuitive since lower prices are often associated
with higher demand. However, several factors could explain this result. Such as, the higher-priced
product (Product A) may be perceived as having higher quality or value by customers. This perception
could lead to more sales despite the higher price point. Additionally, Product A might have a stronger
brand reputation or more effective marketing strategies, influencing customers to choose their product
over others.

Overall, while price is an important factor in driving sales, other factors such as perceived value,
brand reputation, and pricing strategies can also significantly impact sales volume.
COST LEADERSHIP STRATEGY
LED Strip Lights

LED strip lights are flexible strips of LED lights that are used for
decorative and ambient lighting. The viral nature of TikTok and other
social media platforms helped propel the popularity of LED strip lights,
leading to an increase in demand and the introduction of a wide range
of products to cater to different needs and preferences. Today, LED
strip lights are a popular lighting choice for both residential and
commercial spaces, thanks in part to their accessibility and the
creative inspiration provided by social media influencers. The viral
nature of TikTok and other social media platforms helped propel the
popularity of LED strip lights, leading to an increase in demand and
the introduction of a wide range of products to cater to different needs and preferences. Today, LED
strip lights are a popular lighting choice for both residential and commercial spaces, thanks in part
to their accessibility and the creative inspiration provided by social media influencers.

SHOPS
619 SHOP MALLOUIS MORNINGSTAR 888

PRICE (in
175/10 meters 179/10 meters 235/10 meters
PHP)
UNITS
10,000+ 10,000+ 617
SOLD

Here, we can see that Product A & B have the same total sales. However, their monthly sales
are 8,199 and 5,081 respectively. From this, it is obvious that Product A is selling more. Obviously,
this product is also the cheapest of them all (if sold by 10 meters each). In this case, we can say
that price does affect the perceived choices of the customers. Additionally, they could have a
stronger brand reputation or customer loyalty, influencing customers to choose their product over
others despite the slightly lower price.