Price Strategie of Ford Fusion Hybrid Research Paper

Price Strategie of Ford Fusion Hybrid - Research Paper Example The present research has identified that Ford has launched Ford Focus Hybrid car keeping in mind the continual rise in the price of gas and the overt health conscious that global society has become. This situation is ideal since people are looking for such hybrid cars and carmakers are ready to grab the opportunity to improve their financial health. Toyota has already launched a few hybrid cars and has captured a majority portion of the market. Ford, as a result, has to keep the price of its hybrid fusion in such a way that it can meet its objectives. It is found that the price of Ford hybrid Fusion is set at just over $27000 which is almost $3000 more than its Toyota counterpart. Hence, it can be said that the main objective of such pricing is to gain as much profit as possible; in other words, this pricing strategy of Ford is profit oriented. Flexibility is an important element in the overall pricing strategy. Flexibility is provided in terms of discounts, customization, and negoti ation. Like any other cars of Ford, a customer can place their customized order on the company’s website. Prices are set on the basis of specifications of the customers. Discounts are given to promote the car to some special customers. However, rebates or discounts vary with region. Consumers have little power to negotiate regarding the price of the product. Only customers i.e. dealers have the power to bargain with the manufacturer. Pricing strategies vary with the different stages in the product lifecycle. Usually, there are four different stages in the life cycle of a product. These are introduction, growth, maturity, and decline. Ford Hybrid Fusion is at its growth stage where its demand is found to be increasing continuously as consumers are looking for more and more fuel-efficient car. In other words, sales growth is rapid at this stage.