Pricing Strategy

linguistic universal Rental Printing motorcar Assignment Objective The objective of the simulation was to outgrowth profits of Universal Car Rental troupe. The simulation was run across three cities in Florida, Tampa, Orlando and Miami. Our strategy We adopted a strategy of offering the highest price do fitting whilst maintaining 100% capacity utilization respective to the merchandise share. In the place setting of the scenario, where growth in posit outstripped supply and with only twelve rounds, we felt up market share was not fundamentally important.In respect of setting the price level, we calculated the price elasticity of demand to give us an sagacity into the increment we could make up the price. We concluded that price elasticity of supply was impertinent in the context of this simulation. Customer price response We were quickly adequate to(p) to observe that weekday and weekend demand out did supply we concluded that weekday demand was an alternative for business users and weekend demand was more for leisure users. The well-nigh important aspect we considered was increasing our fleet size to meet market demand. We lost a considerable amount of sales by not meeting customer orders.This could have been easily resolved by even increase of a number of fleet added per month. Universal should also increase filth awareness by applying brand management. After our great exercise and steady increase in market demand Universal should increase marketing in several media applications. Some of theses applications should include, airport advertising, e-advertising, TV commercials and newsprint ads. By advertising in these areas, Universal is certain to increase brand awareness and future success. Final Result My partner and I were able to increase the accumulative profit of Universal Rental Car Company to $268 million.