Today’s Tip
Best Practice: When branding with a Below Market Pricing Strategy, focus on low price in ways the brand can stand out from the competition.
Today’s Article: Tips to Branding with a Below Market Pricing Strategy
There are three pricing strategies: Below Market (low price), At Market (added values) and Above Market (luxury).
Branding with a Below Market Pricing Strategy focuses on low price. With low pricing, comes simplicity and no frills or extras. From the name, logo, tagline and the content focus on simplicity around price and saving money.
Example: Motel 6 (Traveling On A Budget? Motel 6 Has Rates From $39.99.)
Tagline: We’ll Leave the Light On For You
Amenities Available at Every Motel 6 Location:
Kids Stay Free**
Pets Welcome (View Policy)
Free Expanded Cable
Free Local Phone*
Free Morning Coffee
Wi-Fi Internet Access***
* No charge for local calls and no motel service charge for long distance.
** Children 17 and under stay free when occupying the same room with an adult family member.
*** Fee may apply.
WHY FRANCHISE WITH MOTEL 6
“At Motel 6, our commitment to guests is the same as the day we opened: no frills, just a clean, comfortable room for the lowest price of any national chain. Your Motel 6 property will enjoy immediate recognition with a name famous for creating the concept of economy lodging more than 50 years ago. Of course, we have changed with the times. Our contemporary design includes unique and modern décor with an all-new look but with the same low price.”
“Additional considerations:
No. 1 in consumer brand awareness among all economy brands
Highest occupancy in segment
Best operating margins
New design features advanced energy efficiencies to reduce energy costs
The Phoenix Prototype is designed with construction costs and profitability in mind”
Action Step: If pricing below market is your pricing strategy, review other companies that have successfully used this strategy. It this is not your pricing strategy, click on the Return to Pricing Strategies link below.
Additional Resources
Return to Pricing Strategies Return to Brand Library Return to Brand Yourself
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