Pricing Strategies

PRICE value of products expressed in monetary terms.

Steps in Pricing
1. Set pricing objectives
- Maximizing usage: Offering an affordable price that encourages more students to use the
service.
- Recovering costs: Setting a price that covers installation, maintenance, and operational
expenses.
- Market penetration: Introducing the service at a low price to attract more users quickly and
build a customer base.
2. Determine demand
The poor mobile signal in the College of Engineering makes “I CE U Wi-Fi Vendo” a promising
service for students who need reliable internet access. As they often require stable connectivity
for online research, working with large files (like CAD designs), and collaborating on projects,
this service is crucial for enhancing their academic experience.
By offering consistent, on-demand Wi-Fi, “I CE U Wi-Fi Vendo” effectively addresses the
connectivity issues students face. This service not only facilitates productive study sessions but
also allows seamless use of online learning platforms and collaboration tools.

3. Determine costs
ITEM PRICE(PhP)
Wi-Fi Vendo 8,000
Monthly Internet Subsbription 1,800
Installation Fee 500
Router 1,540
Maintenance and Technical Support 1,000
Wi-Fi 5 Wave 2 Access Point 23,700
Total 36,540

4. Determine competitors’ prices and pricing Strategies

Existing Campus WiFi Services
- Locations: Available primarily in high-traffic areas like the student canteen.
- Pricing: Generally greater price and lower duration of connectivity and may have slower
speeds and limited coverage in populated area like the canteen.
Comparison Factors:
a. Location and Environment
- “I CE U Wi-Fi Vendo”: Located in the college of engineering's study area, which is quieter
and more productive to studying.
- Competitors: The campus canteen is noisy and crowded, making it difficult for students to
focus.

b. Service Features
“I CE U Wi-Fi Vendo”:
- Pause Feature: Users can pause their usage time, allowing them to manage their study
sessions more effectively.
- Extra Hour Offer: For every 10 hours purchased, an additional hour is granted.
- Referral Credits: Users earn extra credits for every successful referral, encouraging word-
of-mouth promotion.

Competitors:
- Typically offer standard WiFi without unique features or flexibility.

c. Performance
- “I CE U Wi-Fi Vendo”: Promises higher speeds and better coverage in the engineering area,
specifically designed to cater to students needing a stable connection for studying and projects.
- Competitors: May experience congestion and slower speeds during peak times, especially in
crowded areas like the canteen.

Pricing Strategy:
- Competitive Pricing: Since “I CE U Wi-Fi Vendo” has the same pricing as competitors but
offers enhanced features, it positions itself as a superior option.
I CE U Wi-Fi Vendo Canteen Wi-Fi Vendo
Price(Php) Duration(mins/hours/day) Price(Php) Duration(mins/hours/day)
1 10 mins 1 1 mins
5 1 hour 5 1 hour
 10 3 hours 10 2 hours
20 1 day 20 5 hours
40 1 day
120 7 days
300 30 days

- Value Proposition: Highlight the added benefits (pause feature, extra hours, referral credits) to
justify the price.
- Promotional Offers: Consider introductory discounts or promotions to attract initial users and
build a loyal customer base.
“I CE U Wi-Fi Vendo” hasits unique advantages effectively—location, enhanced features, and
better performance—while maintaining competitive pricing. By understanding its strengths, it
can differentiate itself from local data plans and existing campus WiFi, making it the go-to
option for students seeking a reliable and study-friendly internet connection.

5. Evaluate different pricing methods

Explore different pricing methods to determine what works best:
- Pay-per-use pricing: Charge based on the amount of time (e.g., per hour) or data used. This is
typical for Peso WiFi and allows flexibility for students.
- Flat-rate pricing: Offer daily, weekly, or monthly passes for unlimited access within a set time
period.

6. Set the price

WiFi ACCESS
Amount(PhP) Duration(mins/hours)
1 10 mins
5 1 hour
10 3 hours
20 24 hours

Place (Distribution) Strategies

• Making the right products available at the right place and at the right time; done through
distribution channels
• Choice of channels dependent on:
a. Nature of product
The weak mobile signal in the College of Engineering area makes “I CE U Wi-Fi Vendo” a
vital service for students who rely on internet access but struggle with mobile network
connectivity. By providing reliable, on-demand WiFi in this area, it promotes the service
needed as a primary solution for internet access, particularly for study sessions, online
research, and communication, since students might access heavy files (e.g., CAD designs,
large documents). “I CE U Wi-Fi Vendo” would be an essential service to help them access
research materials, online learning platforms, and collaboration tools.

b. Capability of the producers to produce

Since mobile networks aren’t reliable, “I CE U Wi-Fi Vendo” will need to handle high user
loads efficiently, as many users will rely on it for all their internet needs. Ensuring strong
signal coverage across the entire engineering ground will be crucial, possibly requiring more
access points or stronger routers as the study area might see high traffic during peak times,
especially before exams or project deadlines. And ensure the “I CE U Wi-Fi Vendo” is
sufficient to cover the entire study area. This includes setting up the necessary equipment
like access points, repeaters, and ensuring adequate bandwidth to handle multiple users,
given that the area lacks strong mobile data service.

c. Willingness of the middlemen to carry company’s product

In this case, the middlemen could be the college administration and College of Student
Council. Their willingness to support the project would depend on factors such as:
- Educational benefit: Since internet access is crucial for students' academic work, the
administration may be inclined to support the initiative.
- Financial or logistical support: The administration may also consider how the service
will be funded (e.g., will students pay per use, or will there be some shared financial
responsibility?).

1. College Administration:

- Benefit to students: Highlight how the “I CE U Wi-Fi Vendo” will support students'
academic work, especially in the study area where internet access is limited.
- Approval and logistics: Obtain necessary permissions for installation, power supply,
and maintenance access. The administration may also have input on how the service
aligns with the school's IT policies.
 2. College of Student Council:

- Student support: Engage the Student Council to advocate for the project, as it directly
benefits students. They can help rally support and promote the service among the student
body.
- Feedback and promotion: The Student Council can provide insights on the students'
needs and preferences (e.g., preferred price points or access points in the study area).
They can also help communicate the availability of the service and address any concerns
students might have.

And highlight any educational advantages, like making it easier for students to access
learning resources and address any concerns about network safety or content filtering.

Promotion Strategies
• Done to communicate part of the marketing strategies
• The promotion mix includes:
a. Sales promotion
- Free Trial Period: Offer a one-day or one-week free trial for students to experience the
service. This will encourage usage and let them see the value firsthand.
- Loyalty Offers: Provide discounted rates or extra “I CE U Wi-Fi Vendo” credits for frequent
users, such as giving an extra hour of access for every 10 hours purchased.
- Referral Program: Encourage students to refer their peers to the service by offering bonus
credits for each successful referral.

b. Advertising
- Posters and Flyers: Place eye-catching posters around high-traffic areas of the college,
especially the study area and common spaces. Highlight the convenience, low cost, and
availability of the “I CE U Wi-Fi Vendo.”
- Digital Ads: Leverage the student portal or internal communication channels to send out
announcements and details about the service. We can also use social media posts in the school’s
official groups or pages.

c. Publicity
- Word of Mouth: Ask the College of Student Council to endorse the service and promote it
during meetings or events. Student Council members can help spread the word informally
through peer networks.
- Launch Event: Host a small launch event in the study area where students can learn about the
service, get free access for a day, and enjoy giveaways (like free “I CE U Wi-Fi Vendo.” credits).
- Positive Reviews: Encourage students to leave positive feedback or reviews on social media
or internal platforms once they have used the service. Highlight any recommendations from
satisfied users to build trust.
d. Personal selling
- Recruit student volunteers to engage with their peers directly. These volunteers can promote the
service during peak study times and help new users get set up, offering assistance with
connection issues or explaining how to buy credits.
- Set up a small info desk near the study area or in the College of Student Council Office where
students can ask questions, purchase credits, or receive help signing up for the service.