Hypothesis Statement: “Very cheap price of gift basket, installment plan, and delivery services can boost Lotus’s sales up”
Topic Category: Pricing and Promotional Strategy
Publication: Kom Chad Luke
Date: November 18th, 2005
“Lotus reduces the price of gift basket to 189 Bahts”.
As there is less purchasing power in this year, Tesco Lotus reduces the price of gift basket to 189 Bahts, sets installment plan, and has delivery services for the customers. For the gift basket, there will be more house-branded products inside, which can make Lotus set lower price than the last year. For installment plan, it allows customers to buy with very low interests on a loan. Also, if the customers buy more than 10 baskets, Lotus will have delivery services for them. All these strategies will help Lotus to boost up its sales.
I strongly agree with Lotus’s plans for many reasons.
1) From tight economic situation and rising price of many products and services while people still get the same salary as before, the overall purchasing power tends to be less. People will try to pay less than they did. However, for many people, buying gift basket for relatives, friends, and customers is still a must. As Lotus has a promotion of very cheap gift basket, they will go for it. On the other hand, some customers, who don’t want cheap gift basket with house-branded products, can also select their own from the price range of 189 to more than 5,000 Baths.
2) The installment plan of Lotus can make the customers buy more than they may do. Usually, people have to save up their money for buying gifts in the new-year celebration. Some people may save up too little and some may not even think about it. When the time of buying gifts comes, they just spend what they have or borrow from other people. Installment plan can make them buy more because they will think that they can pay it forward with very low rate of interest offering by Lotus.
3) Some people, who want to buy many baskets, but have the problem with carrying it back home, may buy less than they want to. Therefore, with this delivery services, some people may buy more, which also means more sales of Lotus.