3. Marketing Plan
3.5. Pricing Strategies
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9. Invite friends and family to visit the fan page – ask for improvement suggestions and contents that are truly of interest.
10. Set out targets for the coming year – understand all the dimensions of social media marketing. Set targets that can be achieved within a limited time period.
11. Humanize social media with personal presence – meaning to have a human touch and create a personal brand on facebook.
12. Create more viral contents – leverage the popular videos or clips on the Internet, and make connections with them.
13. Incorporate all possible multimedia tools – contents need to be dynamic and vivid to make the marketing standout.
14. Limited time only on sale events – to be shown on fan page to attract buying intentions.
15. Combo sale announcement – related products can be bundled into package sale at a considerably cheaper price.
16. After sale satisfaction survey – customers will receive e-mail from Pylones-Taiwan.tw about their satisfaction on the products and logistics services.
17. Periodic free delivery by occasions or holidays – to stimulate sales specifically on important holidays, such as children’s day, mother’s day…etc.
3.5. Pricing Strategies
Pylones-Taiwan.tw will follow Pylones Headquarters’ international retail price policy, which will be within the range of +/- 15%. Taking the available retail prices from Pylones Australia
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and Korea respectively from http://www.pylones-australasia.com/shop.asp (Ref. 8) and http://www.pylones.kr/ (Ref. 9), product pricing is marked up between 20% ~ 25% from the country of origin’s list price possibly due to currency fluctuation, import tariffs, and GDP of the country in subject, and shipping cost.
According to information from the online data WTO Import Tariff Rates by Country provided by Chung Hua Institution for Economic Research in 2013 (Ref. 10), most of the Pylones products would fall into the 5% import tariff rate category in Australia, and 0% ~ 8% for Korea.
However, according to the 2012 Global GDP Per Capita Statistics by StockQ.org in 2012 (Ref.
11) showed below in Table 15, product prices do not seem to be strongly influenced by the GDP per capita: Australia at USD 69,200 while Korea is at USD 23,900; therefore it is reasonable to state the assumption that the oversea product pricing is mainly managed by the Pylones Headquarters with markup adjustments based on tariff rates and shipping cost.
For Taiwan, even though Pylones products are new to the market, and that some of its design ideas are one of the kind, price positioning is still critical. Based on the import tariff of how Pylones products are categorized, tariff rates of 3.4% to 10% will be applied to most products;
and based on the business model of special franchise, tariffs would need to be put into considerations for Pylones Headquarters to agree on the pricing plan for Taiwan. Table 16 shows the import tariff of the product categories Pylones-Taiwan.tw will carry. Column I indicates the import rates of duty set forth for all countries that are WTO members (for those listed as the members on the WTO website which are not subjected to non-application of the
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Without having the physical shop to add onto the operational cost, product pricing for online sale should be relatively less expensive than if a physical store was present. Therefore, product pricing for Pylones-Taiwan.tw will be proposed with 10% to 15% markup after being converted from Euro to NTD. Thus, according to Chapter 2.1 Products Descriptions mentioned earlier, pricing will be product dependent and set within the following range:
Beauty: NTD 275 ~ NTD 1,795 Office: NTD 140 ~ NTD 735 Tableware: NTD 320 ~ NTD 1,520 Kids: NTD 230 ~ NTD 1,000
Table 15: Pylones Stores’ Country Distribution and GDP Continent Country No. of Stores 2012 GDP Per Capita
France 18 43,100
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Table 16: Taiwan Import Tariff Rates by Product Categories
Column I Column II Column III 0%(GT) Description of Goods Unit Tariff Rate
7.50%
95049090 Other articles for funfair,
table or parlour games KGM 40151990 Other gloves, mittens and
mitts, of vulcanised rubber DZN KGM
96081000 Ball point pens
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4.1. Company Setup and Domain Name Registration
Pylones-Taiwan.tw will register its company name at the Ministry of Economic Affairs (MOEA) website with the following procedures and fees involved, see Table 17.
Table 17: Company and Business Registration Fees in Taiwan
Registration Item Applicable Fees (NTD)
Company Name Pre-Inspection 150
Company Setup Registration 1000 for actual capital under 4M 1 per every 4000 worth of total capital
Business Name Pre-Inspection 150
Business Setup Registration 1000 (20% off for Internet Registration = 800)
Business Operation Registration Free Setup Labor Health Insurance Coverage Free Company’s Internal Work Regulation
Approval Free
After the company is officially established, incorporation and tax registration application and purchase of invoice from the Tax Bureau will need to be done, with the initial business operations, an assumption of sales between NTD 60,000 and NTD 200,000 will take place in the beginning, thus 1% of sales tax will be applied; however, as business progresses, monthly sales will exceed NTD 200,000, thus 5% sales tax will be applied, and invoices will need to be issued.
As for the company domain name, Chung Hwa Telecom Hinet Service charges are shown as below in Table 18, and initially the company will sign a two-year service to obtain the domain name, later as the business grows, the service contract will be long term and extend to possibly 10 years.