Research On Pricing Strategy Of IHDC Hydraulic Company

As the Industrial Hydraulic Division in China of PH group,IHDC hydraulic company's PK series products are well known among China's industry field.With her leading technology,reliable product quality and performance,IHDC company has obtained a group of loyal customers.But with the competition become fiercer,IHDC conducts new market 4Ps strategies: on product,promotes standard product and shorten lead time;on channel,integrate small customers and grow distributors;on price,shorten quotation span and realize margin maximization;on promotion,strengthen E-commerce and social media promotion.The article aims at IHDC's product pricing and promotes pricing strategy solutions to solve company's two price problems.For problem that price discount cannot reflects different demand of different customers,by analyzing market demand and cost factors to find out the cause of the problem: lack of deep market segmentation and incorrect cost.Aims at these causes,the article promotes demand differentiated pricing strategy and cost improvement solutions.By using 80/20 principle,Boston matrix analysis tools to adjust price discount.For problem that selling price cannot reflects product differentiation,by analyzing product position and competition strategy factors to find out the cause of the problem: cost plus pricing cannot reflects different products' market positions and higher selling price caused by improper competitor positioning.Aims at these causes,the article promotes product life-cycle pricing and value-added pricing improvement pricing strategies.By using value exchange model and sales threshold formula to adjust product sales price.Based on problem raising,analyzing and solving these three problem-solving steps,this article finally promoted the pricing strategy solutions.The strategies are helpful for solving company's price problems and achieving the profitability maximization pricing goal.