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Business Analysis - The Braap Organization

The majority of products and services that Braaap offers are accompanied by a life-time warranty. This is the only motorcycle company in the world to offer this feature. This feature somewhat o enhances how people perceive the company and its values. Customers are more likely to be attracted to products which offer lifetime warranties as this decreases the worry customers feel associated with future repair and maintenance. The company build their bikes to specifically fulfil the needs of adults. Braaap's design philosophy is to provide comfort and support for adults along with ease of movement. Braaap designs bikes compatible for both beginners and motoring enthusiasts whilst also providing bikes suitable for kids to learn on. They also offer additional accessories including fashionable and protective clothing and other bike accessories.
             3. Review pricing policy and analyse pricing variables to determine the effect of demand.
             Pricing Policies: Braaap uses three main pricing policies/strategies. These include product line, product bundling and market skimming. They also offer a variety of flexible payment plans to suit customers. One of the main pricing strategies that Braaap uses is product line, which is setting price steps between product line items. Using high-low pricing is an effective technique when it comes to attacking the premium motorcycle market. This strategy offers Braaap the same or higher price than their competitors. Another common strategy also used by Braaap is product bundling. Product bundling refers to when customers are offered a deal or discount when they make a larger purchase rather than buying individual products. Braaap has also adopted the market skimming strategy. This is when prices are initially set higher to "skim" revenue layer by layer from the market. Braaap is able to utilise this strategy because their brand image, quality and reputation are able to justify the high price.


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