Pricing Objectives and Strategies of Pixar Animated Studios Essay

Pricing Objectives and Strategies of Pixar Animated Studios - Essay Example One of the most important considerations while setting the price objectives is the fact that how much prices setting objectives corresponds to the overall strategy of the firm. Further to this, the pricing objectives are selected with business and financial goals in the mind. Error: Reference source not found. The possible pricing objectives to be set can be: Considering Pixar in mind, since in entertainment industry prices vary according to the film theaters, therefore, there is a very little bargaining power left to the producers to bargain. A closer look at the situation would suggest that the pricing within the entertainment industry largely depends upon the quality of the content. If films are being liked by the audience than any pricing objective can be set to achieve. It can be either to maximize sales volume, profits or to keep the status quo. If the content is not liked by the audience than any pricing objective and subsequent pricing strategies may not work for the Pixar. As discussed above that the pricing strategy within the entertainment industry does not have preferential rights to set the prices and they are largely being standardized within the industry, therefore, any pricing flexibility may not be working directly for the Pixar. However, within Channel distribution, the negotiable pricing may seem to the right idea for Pixar to work. Since pricing, flexibility within channel distribution will provide them a necessary room to gain more room on the theater for prolonging and a special screening of the films at special prices for the different classes of the customers. Since Pixar is the producer of animated films which are supposed to be more popular with children, therefore, a targeted pricing flexibility against specially arranged screenings may allow it to generate more audience hence more revenue.