A company using a mixed-brand strategy could employ a skimming pricing strategy with its manufacturer brands and a penetration pricing strategy with its dealer brands.

Question

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A mixed-brand strategy allows a company to differentiate its product lines and target different market segments. By using a skimming pricing strategy for its manufacturer brands, the company can target premium segments by setting high prices initially. Meanwhile, employing a penetration pricing strategy for its dealer (or private label) brands allows the company to target more price-sensitive customers by setting lower prices to quickly gain market share. This approach leverages the strengths of both pricing strategies within a diversified brand portfolio.

A Company Using a Mixed-Brand Strategy Could Employ a Skimming