As an example, consider how biscuits are sold in different weighted categories of 180g, 250g, 500g and 100g. The price varies based on the addition of grams or reduction in weight. This specifically exists to ensure that all consumers would be able to afford the products. Thus given this existing situation, it would be impossible to impose premium pricing on this product. Premium pricing is best used when there is some definitive advantage over existing competition and when it is necessary to create uniqueness. Now when a brand already has created some awareness in global markets, then during entry, it would make sense for the brand to make use of premium pricing during entry.
However, in the case of the Wu Dalang, it is noted that the brand is not that popular in the United Kingdom. The number of British Chinese that are living in the country are seen to be approximately 247,403 and this is around 0.5 percent of the UK population only. Therefore, while it would be a safe bet to assume that this population would know about Wu Dalang biscuits, the rest of the UK population could still be unaware of the biscuits. The product hence cannot afford to use premium pricing for penetration. For penetration advantage, it is necessary for the company to make use of a standard competitive pricing set based on the existing biscuit manufacturers in the country.
This form of pricing choices would allow the company to start out competitively and the company would also be able to retain their competitive sensibilities over time. Economy pricing is hence best suited. As previous economy facts indicate that the total number of the unemployed in the country has still not improved vastly. It is still high compared to its previous rates and the heavy inflation in the country has still not stopped, so consumers would expect to have their products at rates that are convenient to them. Therefore, low and competitive pricing would be better suited here.