Branding, Pricing, and Distribution

Abstract
This assignment focuses on branding, pricing, and distribution of Clear-Springs, Inc.’s product and service. In this assignment, a domestic and global product branding strategy was created and the optimum pricing strategy was determined and discussed in detail. An examination on how the company’s pricing strategy supports its branding strategy was compelled and discussed in detail. A distribution channel analysis identifying the wholesaler, distributor, and retailer relationships; which included any e-Commerce was prepared. A justification of whether or not a push or pull strategy will be used was explained in detail. How the distribution strategy fits the product / service, target market, and overall marketing strategy for the company was also discussed.
Introduction

Global branding aids to improve boundaries by driving down unit costs through economies of scale associated by examining agencies, ad copies, and marketing messages. Brands streamline decisions for consumers, who are demanding, more skeptical; and face a wider array of choices in a progressively cluttered world. By maintaining a reliable and consistent brand image, Clear-Springs, Inc. reduces consumer confusion and reinforces the message in a cluttered market. Clear-Springs, Inc.’s mission is to provide customers with the best specialized, effectual and dependable water treatment service available. The company’s motto is “– to benefit and replenish everyone it reaches.” Product Branding Strategy
By building a strong, consistent brand culture, Clear-Springs had become the number one leading brand in water treatment and purification systems throughout the United States; and eventually the world. The company’s brand remains familiar to consumers wherever it is in the United States and now throughout the rural areas in Kenya. Part of Clear-Springs, Inc.’s branding strategy was to become borderless in its marketing.
The company adopted a more unified marketing approach to avoid the risk of becoming marginalized. By adopting this approach, Clear-Springs, Inc. had distanced itself from its competitors by not becoming a multinational brand, but by becoming a transnational brand without any boundaries; that’s truly global.
Optimum Pricing Strategy
One of the most difficult decisions managers ever make is setting the optimum price for a product and/or service. Pricing represents a strategy to increase sales volume at a profit while incorporating and communicating critical messages about the value the offering delivers to the customer . Clear-Springs, Inc. determined its optimum pricing strategy by considering and/or incorporating a few different core ideas. Clear-Springs, Inc. conducted a competitive analysis by taking a look at its competitor’s pricing and the entire package that they were offering. The company wanted to consider if its competitors were offering any value-added services or not.
Clear-Springs, Inc. considered a ceiling price in which the company initially surveyed experts and consumers to determine the pricing limits. The company estimated the demand curve by performing experiments at prices above and below the current price in order to determine the price elasticity of demand. Clear-Springs, Inc. then calculated the costs involved. The unit cost of one of the company’s water treatment and purification systems set the lower limit of what the company might have charged which, in turn, determined the profit margin of higher prices. Clear-Springs, Inc. took into account the competitive and legal environment in which the company operates.
Competitively, the company didn’t want to set the price too low and risk a price war; nor did the company want to set the price too high and attract a large amount of competitors who wanted to share in the profits. Legally, Clear-Springs, Inc. didn’t want to violate any laws to include, but not limited to, predatory pricing or dumping; price discrimination, and/or collusion. Lastly, the company offered promotional discounts to help stimulate sales. How the Pricing Strategy Supports the Branding Strategy
Being that Clear-Springs, Inc. had built a strong, consistent brand culture; the company wanted to makes sure that the pricing strategy complimented its branding strategy. As the number one leading brand in water treatment and purification systems, Clear-Springs, Inc. didn’t want to set the price for its product or service too high or too low. With such a reliable and consistent brand image, Clear-Springs, Inc. had to complete an extensive competitive analysis to strategically price its product or service.
Knowing what other competitors are offering is very essential and plays a major part in optimum pricing strategy. By estimating the demand curve for the company’s product or service, the company was able to project future profits and sales in regards to the market becoming more elastic or inelastic. With all the considerations in play, Clear-Springs, Inc. was able to set an ideal price for the perfect brand product.
Distribution Channel Analysis
Conducting an overall market analysis helps determine the target demographic and demand for your products, as well as your competitors and their distribution channels . Because Clear-Springs, Inc. wanted to maximize its profits, it operates strictly using E-Commerce. An online channel is disruptive to the traditional ways of marketing and distribution. Online selling features the removal of intermediaries, while still reaching large groups of potential customers. Basically, Clear-Springs, Inc. cuts out the middle man while retaining the ability to sell to a broadly-based market. Harnessing social networks, online ad campaigns and message boards to spread the word, you can achieve substantial sales volumes quickly .
By creating an e-commerce website for the company, Clear-Springs, Inc. was able to take orders online, receive payments by use of debit/credit card transactions, and send confirmation all at once. Clear-Springs, Inc. stocked its own inventory in company-owned warehouses and fulfilled all of its own orders to keep from spending funds using other companies to do the work for them. The company also packages and distributes all of its products using its own company-owned distribution centers located throughout the United States. This was just another way of cutting out the middle man. Clear-Springs, Inc. digital marketing tactics included: Company websites
Social media applications such as Facebook or Twitter
Blogging
YouTube
E-commerce
Push or Pull Strategy
Clear-Springs, Inc. used the pull strategy to motivate its customers to seek out its brand in an active process. Some of the tactics used included: Customer relationship management
Word of mouth referrals
Advertising and mass media promotion
Sales promotions and discounts
This strategy required a highly visible brand, such as Clear-Springs, Inc.’s brand, which was developed through mass media advertising or similar tactics. Create the demand, and the supply channels will almost look after themselves .
Distribution Strategy
Because of Clear-Springs, Inc.’s company-owned distribution centers located throughout the United States, it was able to package and distribute the company’s product to all of its customers and consumers directly, regardless of where they were located. This also included international customers and consumers as well. The company was able to cut spending costs tremendously by storing, packaging, and distributing its own products and/or services itself.
Works Cited
Fontelera, J. (2013). Distribution Channels and Marketing Analysis. Retrieved from Chron: Small Business Web site: http://smallbusiness.chron.com/distribution-channels-marketing-analysis-60985.html KuTenk 2000. (2009, May 28). Four Pricing Strategies for Setting the Optimum Price. Price to Cover Costs. Pricing to Meet the Market.