ABSTRACT

This study was to establish the effects of pricing strategy on sales volume a case study of Bidco Uganda limited. Bidco Uganda limited was selected to the basis of the research study. The main objective was to establish the effects of pricing strategy on sales volume, to establish the pricing objectives pursued by Bidco (U) limited, to establish pricing strategies at Bidco (Ur Limited, to identify factors that influence pricing strategies at Bidco U Limited, and to establish the effect of pricing strategies on sales volume at Bidco (U) Limited. The study revealed that the pricing objectives pursued by Bidco (U) Limited include pricing for profit, pricing for competitive advantage, pricing for sales growth and positioning. The pricing strategies pursued by Bidco (U) Limited include cost-based strategy, competition-based strategy and demand-based strategy. The factors that influence pricing strategy at Bidco (U) Limited are identified as cost of operation, buyer purchasing power, government policy, prices of substitute and marketing mix strategy. It was established that pricing strategy affects sales volume depending on its impact on buyer's purchasing power. Based on the findings the research recommended that Bidco Uganda limited should closely monitor the following aspects that affect the sales volume; the marketing mix strategy (i.e. product features, place, and promotion), customer care to build long term mutually beneficial relationship with customers, the company should monitor the price of the competing products, position its brand as the best in the market place through brand promotion, offer trade discounts and sales discounts for repeat purchase, and employ an efficient technology to cut operation costs.