Page 5 - Getting the Secret Recipe Right
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4.0 PRICING STRATEGY
A) LINING
Generally, Secret Recipe uses price lining
concept on certain product categories in order
to simplify the choices of the customers by
introducing same pricing for foods of the same
category8. As referred to Table 4, the cakes
offered are divided into several categories e.g.
cream, cheese, premium, square cakes and
brownies. For Cream cakes and Cheesecakes
categories, it is price as RM98.00 per whole
cake, RM9.80 per slice for take away and
RM10.75 per slice for dine in.
B) SKIMMING
For overall of their products, Secret Recipe As compared to other brand that provide a
use skimming strategy, which setting a similar concept of dining cakes (Refer figure
price that is close to their Value to below), Secret Recipe has been using skimming
Customer (VTC) and be perceived as high strategy in pricing its product. To make a
price by the customer. Nevertheless, comparison among competitors, each of this
customers are willing to pay for their brand has a unique attribute that makes their
product and services because Secret Recipe product different and thus influence the price
never fails to deliver their promises; in setting.
serving fine quality cakes and cuisine in a
fascinating environment at an affordable For instance, Secret Recipe, Starbucks and
price. In addition to that, it also has Baskin Robbins are targeting the middle-upper
successfully maintained their image and income group by providing a fancy, hipster &
brand for more than 20 years and have exclusive surrounding and offering a variety
become the main brand whenever choice of food and beverage. And in addition,
customer think about cake (refer Table 6). Starbucks are specifically focus on their coffee
product while Baskin Robbins specialized in ice
cream product.
On the other hand, King’s Bakery and Baker’s
Cottage are targeting for low-middle group.
King’s Bakery does not provide dining area or
selling cakes per slice; thus, they have reduced
the fixed cost involved (staff, kitchen, assets)
and manage to offer a cheaper cakes but with
limited choice.
Geting the Secret Recipe right 04
