International pricing strategies bases and challenges for small and medium handicraft enterprises in Tanzania

To be successful any business organization needs to have strategic marketing approaches in place among which pricing strategies are crucial accelerating components for a successful business. This study explores the international pricing strategies used in the Tanzania Handcraft Sector, the pricing challenges facing this sector together with the pricing bases applied by the sector in the international arena. The study employed a case study research design. Primary data was gathered by means of semi structured interview questions. Both purposive and random sampling techniques were used. A total of 50 respondents were interviewed after which qualitative data analysis was conducted. Respondents’ direct quotations were used to qualify qualitative data. The finding indicates that the International Pricing Strategy most frequently used in the handcraft sector was cost plus mark-up, others being competition based, penetration pricing, price skimming and cost based pricing. It was also found that the bases of pricing for Tanzanian handcraft sector were value based pricing; competitor based pricing and internal factors such as distribution costs and profitability. It was concluded that although the handcraft sector in Tanzania has done a commendable job in marketing the Tanzania handcraft products internationally the entrepreneurs lack international marketing skills for them to use in their undertakings. On the basis of the study findings it is recommended that an organ has to be established to address the supply chain issue and to link with promotion of the sector. It is also recommended that the Government has to promote a business friendly environment by establishment of a permanent private-public sector consultation mechanism without forgetting the reinforcement of training on international marketing skills and information systems to boost the handcraft trade