BUSI 520: Strategic Marketing Management MMIP: PRICE AND
DELIVER VALUE OFFERING ASSIGNMENT 2025 Liberty
University
Marketing Management Individual Project (MMIP): H.E.B.
Eric Castro
School of Behavioral Sciences, Liberty University
BUSI 520: Strategic Marketing Management
Author Note
Eric Castro
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Eric Castro.
Email:
, MMIP: PRICE AND DELIVER VALUE OFFERING ASSIGNMENT 2
Marketing Management Individual Project (MMIP): H.E.B.
Q1. Explain the selected pricing strategy (penetration, skimming, competitor-based, etc.).
(Ch.11)
Competitor-based pricing is a pricing strategy in which a company decides to price at a
market average price in comparison to its rivals' rates (Marshall & Johnston, 2023). H.E.B. has a
competitive pricing approach, basing prices on what rivals charge for comparable items. This
strategy is critical in the grocery retail business, where price sensitivity is strong, and customers
often check prices between locations. H.E.B. maintains its competitive edge by constantly
analyzing rival prices and selling its products at favorable costs. This technique allows H.E.B. to
recruit price-sensitive clients while retaining a strong market position without jeopardizing
profits. The combination of competitive pricing and private-label items, which provide quality at
cheaper costs than national brands, strengthens H.E.B.'s value offering and distinguishes it from
its competitors (Gielens et al., 2021).
H.E.B.'s pricing strategy is underpinned by comprehensive price analytics and market
research, enabling data-driven pricing decisions across product categories and geographies.
Promotional activities such as frequent discounts, loyalty programs, and digital coupons
reinforce H.E.B.'s competitive price and encourage repeat business. Using these methods, H.E.B.
enhances shop traffic and total sales volume. This comprehensive approach ensures that H.E.B.
remains a popular choice for shoppers in a highly price-sensitive market, aligning with modern
marketing principles and positioning the company for long-term growth and success in the
competitive grocery retail landscape (Marshall & Johnston, 2023). By continually delivering
value via smart pricing and promotions, H.E.B. cements its position as a customer-centric retailer
dedicated to quality and affordability.