Price

Ah Huat actually used the non pricing competition as their strategy to attract their consumers with their branding. Because offering a lower price than a competitor is not the only way of competing. Sometimes, little possibility of quality differentiation is exists between two products. For this reason, Ah Huat can compete their brand with other by manufacturing a perception of high quality products. Ah Huat used a lot of method such as the very impressed and creative advertising to emphasis that Ah Huat White Ceffee is a traditional flavour of white coffee with high quality. Thus, all this can said that the positioning of Ah Huat is more higher and the price will be more expensive than the other brands because of the good quality. But, if consumers must choose between two products of the same price, they can see that the quality between the product is different. So, consumers will typically pick the product with higher quality even the price is higher. Pricing strategy for establishing products, Ah Huat White Coffee is focus on the maintaining prices because in circumstances where a price change may be desirable, but the magnitude of change is undeterminable. It is found the competitors of Ah Huat White Coffee are very week in terms of having market share, so it give company a edge on competitors to maintain prices while introducing new product. They have flexibility in their pricing strategy but only for the Institutional businesses, otherwise they stick on with same prices in market. And this is because their competitors are not powerful and not in a position to dictate Ah Huat White Coffee to create flexibility in pricing. The instant coffee market is absolutely oligopolistic but Ah Huat White Coffee has a few competitors such as Jacobs, Cafe Crown and Tchibo. In this market the demand structure is elastic. Product line pricing strategy of Ah Huat White