Cost will effect our pricing

After a series of meetings with our group, pricing has become a very sensitive topic mostly because after our meeting today, we were encouraged to make our a product a premium product and ask customers to pay a minimum of R30 for packets. I feel its important for ORA Hygiene to develop neutral price for consumers, mostly because the pricing will determine weather or not we make a good return.

ORA aims to offer functional, comfortable and convenient packaged disposable toilet seat covers. ORA seeks to use good-value pricing methodologies that are a mixture of quality, service and affordability for consumers. Round number pricing encourage 

Costs that can be incurred

1.    Material paper costs

2.    Die cutter costs

3.    Packaging costs

4.    Labelling costs

5.    Distribution costs 

Pricing Strategy for packs of 10 Hygiene Covers

Target price to match value – Round number pricing

ORA pricing must aim to create positive connotations that relate to product usability, convenience, quality and affordability.  Round number pricing strategies are more fluently processed and encourage reliance on feelings. The decision to purchase is motivated by feelings and emotions, this makes it important for pricing strategies to appeal to customer feelings and emotions.

Intersting article on round number pricing:

http://www.strategy-business.com/blog/The-P sychology-of-Pricing-Customers-Prefer-Round-Numbers?gko=f4877

Next Week

Next week we will be focusing on research required for the market research proposal which is due soon. This will be very tricky to do taking into consideration that exams are just around the corner.

Target market profile developmnts

Target market profiles have been developed and structured for the kind of customer ORA Hygiene wants to attract and communicate to for sales. 

The regular guy or girl:

These are your regular kinds of people who are characterised by different kinds of characteristics that motivate buying decision.

Example:

Anna

Anna is a 2^nd year undergraduate student at the University of Cape Town studying Bcom accounting. Anna comes from middle income family and her parents are fully responsible for her pocket money for food, entertainment and personal hygiene. Anna drives a Polo Vivo and lives on campus at the one of the female residencies. Anna is constantly having to share toilet facilities at school and at her residence.

Bidvest Steiner Hygiene

Steiner Hygiene is a one of South Africa's biggest hygiene companies that are involved in providing customers with innovative professional hygiene solutions. Its important for ORA Hygiene to start thinking of other potential products in which it can develop in the near future, which can expand the business into multiple avenues. 

Steiner provide a range of health and hygiene services from washroom accessory rentals to deep cleaning, dust control, pest control as well as hygiene, cleaning and office consumables sales.

Their clientele spans a range of industries and sectors, from Industrial to Mining, Manufacturing to Retail, Healthcare to Hospitality and Finance.

ORA Hygiene has the opportunity to be much more than disposable toilet seat covers, this business could one day be as big as Steiner Hygiene.

Logo feedback

ORA Hygiene has received dissatisfactory feedback on weather or not our current logo design is appealing for customers. Many people feel that using the colour yellow is unhygienic because of some of the negative connotations that are attached to the colour. 

Some people were highlighting at the fact that the branding looked like urine 

This is something that the ORA team was totally unaware of mostly because the team was trying develop a product that stood out from all potential rivals and competition.

Target Market - Connivence Providers

Convenience providers (Business to Business) - "Where the money is"

Convenience providers seek to provide complimentary convenience for users using convenience provider facilities like toilet facilities. These are the buyers who are motivated to provide complimentary convenience for restroom users. 

·     

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•       Cape Town shopping centers
• ·        Office centers
• ·       Cape Town IEB schools
• ·     Event organizers

Cape Town Shopping Centers:

The emerging middle class and urbanization are driving the growth of retail shopping centers in the country. If ORA targets 20 shopping centers in the Cape Town metropolitan area with some belonging to JSE listed companies like Old Mutual and Growthpoint properties, ORA can land big contracts that can result in big sales agreements and maximum profits.