Read the following case and answer the question.

Case: Marketing Mix

Amit owns a bakery business in a bustling city in India. His bakery specializes in handcrafted cakes and cookies. As competition increases, Amit decides to create a marketing strategy using the 4Ps of Marketing Mix to boost sales by satisfying customers better than his competitors.

Amit ensures that his products are unique by offering organic and customized cakes. He also adds gluten-free and vegan options to cater to health-conscious customers, emphasizing quality and innovation.

To attract a wide customer base, he adopts a competitive pricing strategy. For premium, customized cakes, he charges higher prices, but his regular cookies are competitive and reasonably priced to appeal to budget-conscious buyers.

He has decided to open outlets in high-footfall areas like malls and introduce an online delivery system to reach customers at their convenience. Amit uses social media platforms like Instagram and Facebook to promote his bakery, sharing visually appealing posts of his cakes. He also offers discounts during festivals and runs a referral program to encourage word-of-mouth marketing.

By carefully managing these elements of the marketing mix, Amit successfully boosts his sales and builds a loyal customer base.

What pricing strategy is Amit using for regular cookies?

Competitive pricing

The correct answer is option 3- Competitive pricing.

In the case, it is mentioned, ''To attract a wide customer base, he adopts a competitive pricing strategy. For premium, customized cakes, he charges higher prices, but his regular cookies are competitive and reasonably priced to appeal to budget-conscious buyers.''

This clearly indicates that Amit is using a competitive pricing strategy for his regular cookies, meaning he sets the price in line with competitors to attract price-sensitive customers.