Viking Simmers a Strategy

Essay by mijailA+, October 2007

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“Viking Simmers a Strategy”. http://www.time.com/time/magazine/article/0,9171,1655710,00.html .

1.How does Viking use branding to its advantage?Viking use branding to their advantage by positioning their products at the higher price range top of the line by identifying their products as high quality and selling the idea of an experience (for gourmets in this case) instead of just a product.

-By focusing the design, pricing, and promotion on their gourmet target, the consumer identify Viking product as more than a range or a grill, but a very functional piece of the kitchen that will not only serve its purpose, but it will also be enjoyed.

-Due to identification of the brand, repeat sales are more probable since the customer already knows the brand and has expectations.

-Profits are higher because customers are willing to pay more for a product of brand they trust, than from some other brand they don’t recognize (even though they may be the exact same product).

2.For Viking, what are the marketing implications of its implied warranty?It’s understood by consumers that a product from Viking will be of high quality, which is considered an implied warranty that comes from unspoken promises and perception.

Implications for implied warranty could be:-Viking is forced to keep high quality standards for their products in order to fulfill expectations for the target market.

-Legal actions could be taken against Viking if low quality products are sold when consumers expect otherwise, as it has been done in the past.

-The implied warranty offers an incentive for consumers to buy, and that brand equity is too valuable to be ignored when promoting.

-Placement is carefully executed through distributor that will be able to meet expectations from implied warranties when it comes to customer service, delivery, etc.

-Pricing can be higher than average base on implied warranty for a product that will last longer and will offer better satisfaction.

3.What level of distribution intensity does Viking use and why?Viking uses selective distribution since they have more than 80 distributors around the world, but due to the type of product (shopping almost specialty) and price, it is not sold through massive distribution. Viking also tries to maintain an excellent image, and for that reason they must be selective about the distribution channels they use.