The Ecology Company: Optimization of Pricing Strategy

Abstract

The case describes the situation with a company working on the B2B market was looking for ways and methods of optimizing its pricing policy and strategy. The Ecology Research and Manufacture Company produced humin salts (humates) for agricultural purposes. The unique technology ensured the company had certain cost advantages over competitors. However, various market segments when using a similar product make different demands on it, have different needs and willingness to pay. This made the company look at opportunities for using differentiated pricing despite the fact that it worked on the competitive market with a primary undifferentiated product.