3701110 Pricing Strategy and Programs

8/12/2019 3701110 Pricing Strategy and Programs

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PROJECT REPORT ONPRICING STRATEGIES FORMARKETING OF PRODUCTS

A REPORT SUBMITTED IN PARTIALFULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER IN BUSINESS ADMINISTRATION


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GNIT Management School6-C, Knowledge Park-II, Greater Noida(G. . Nagar!

T% W&%' I M)* C%+, .+

Thi" i" to certi#$ that Mr. %M".RITIKA RAJ "t&dent o#M. .'. co&r"e ( )1 -1*! at GNITM)+)/ ' + S,&%% with d&al "+eciali ation inMARKETING HUMAN RESOURCE ha""ati"#actoril$ com+leted the "&mmer (NC !

e"earch +ro ect on PRICING STRATEGIES OFPRODUCTSThi" "t&d$i" done &nder the g&idance o# the &nder"igned /$

+artial #&l#illment #or the award o#

M. .'. I wi"h him%her all the /e"t #or /right #&t&re ahead.


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DECLARATION I RITIKA RAJ here declare that the project report title PRICING

STRATEGIES FOR MARKETING OF PRODUCT:- A COMPARISSION is

based on my project study. This project report is my original work this hasnot been used for any purpose .

RITIKA RAJ

MBA I\/ Sem.


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ACKNOWLEDGEMENTI express my sincere thanks to my project guide Mr. PRATEEK AB A!

!usiness "e#elopment $anager for guiding me right form the inception till

the successful completion of the project. I sincerely acknowledge him for

extending their #aluable guidance support for literature critical re#iews of

project and the report and abo#e all the moral support he had pro#ided to

me with all stages of this project.

I would also like to thank the supporting staff of company for their help and

cooperation throughout our project.


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PREFACE

A full time professional course like two year $anagement program demandboth conceptual and practical theory of knowledge. %ence there is a

pro#ision of the project research & prepare a proper report on it.

"uring this Research the student learn through his own experience real

situation of corporate world and its protocols and to put his theoretical

knowledge into practice. This experience is #ery #aluable for the student

and plays a leading as well as #ital role in the professional life of the

management student.

The 'roject study in EFFECTI"E PRICING STRATEGIES OF PRODUCT

was a complete experience in itself which has pro#ided me with the

understanding which has become an inseparable part of my knowledge of

management being learned in $anagement 'rogram. An opening experience


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TABLE OF CONTENT


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,.)o. T-'I 'A*( )-.

/. %. I Introduction /0 1 20

/./ About The Topic // 1 /3

/.2 -bjecti#e -f The ,tudy /4

/.5 6actors affecting pricing /7

/.8 ,ignificance -f The ,tudy 20

2. ase study 2/ 1 29

5. 'ricing strategies 2: 1 88

8. ,wot Analysis 89 1 8:

9. R(,(AR % %;'-T%(,(, 83 1 92


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INTRODUCTION

= N)..%7 *8 +rice i" the amo&nt o# mone$ charged #or a +rod&ct or "er3ice.


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8ow to +rice the "ame +rod&ct when it goe" thro&gh di##erent channel" 8ow to +rice the "ame +rod&ct in di##erent co&ntrie" 8ow to +rice on im+ro3ed +rod&ct while "till "elling the +re3io&" 3er"ion

Man$ com+anie" do not handle +ricing well. The$ make the"e common mi"take" +rice i" to co"t-oriented +rice i" not re3i"ed o#ten eno&gh to ca+itali e on marketchange" +rice i" "et inde+endent o# the re"t o# the marketing mi4 rather than a" anintrin"ic element o# marketing +o"itioning "trateg$ and +rice i" not 3aried eno&gh#or di##erent +rod&ct item ,market "egmentation , di"tri/&tion channel", and

+&rcha"e occa"ion".

Com+anie" do their +ricing in a 3ariet$ o# wa$". In "mall com+anie", +rice i"o#ten "et /$ the /o"". In larger com+anie", +ricing i" handling /$ di3i"ion and +rod&ct line manager". :3en here, to+ management "et" general o/ ecti3e" and +olicie" and o#ten a++ro3e the +rice" +ro+o"ed /$ lower le3el o# management.

P R I C I N G - I N T R O D U C T I O N


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(Perceived) VALU ! (perceived) " # $%&' (perceived) *'&'

' c&"tomer7" moti3ation to +&rcha"e a +rod&ct come" #ir"tl$ #rom a need and a want5 e.g.

> Need5 ?I need to eat

> @ant5 I wo&ld like to go o&t #or a meal tonight?!

The "econd moti3ation come" #rom a +erce+tion o# the 3al&e o# a +rod&ct in "ati"#$ing thatneed%want (e.g. ?I reall$ #anc$ a McAonald"?!.

The +erce+tion o# the 3al&e o# a +rod&ct 3arie" #rom c&"tomer to c&"tomer, /eca&"e +erce+tion"o# /ene#it" and co"t" 3ar$.

Percei3ed /ene#it" are o#ten largel$ de+endent on +er"onal ta"te (e.g. "+ic$ 3er"&" "weet, or green3er"&" /l&e!. In order to o/tain the ma4im&m +o""i/le 3al&e #rom the a3aila/le market,

/&"ine""e" tr$ to B"egment7 the market that i" to di3ide &+ the market into gro&+" o# con"&mer"who"e +re#erence" are /roadl$ "imilar and to ada+t their +rod&ct" to attract the"e c&"tomer".

In general, a +rod&ct" +ercei3ed 3al&e ma$ /e increa"ed in one o# two wa$" either /$5

(1! Increa"ing the /ene#it" that the +rod&ct will deli3er, or,

( ! ed&cing the co"t.


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F#$% $& 're(e)*+*,$)

/. ompare the alternati#e pricing strategies and

explain when each strategy is most appropriate.

2. "escribe how prices are >uoted.

5. Identify the #arious pricing policy decisions that

marketers must make.

8. Relate price to consumer perceptions of >uality.

9. ontrast competiti#e bidding and negotiated prices.

:. (xplain the importance of transfer pricing.

3 th th lt ti# l b l i i


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IMPORTANCE OF PRICING

@hen marketer" talk a/o&t what the$ do a" +art o# their re"+on"i/ilitie" #or marketing +rod&ct",the ta"k" a""ociated with "etting +rice are o#ten not at the to+ o# the li"t. Marketer" are m&ch

more likel$ to di"c&"" their acti3itie" related to +romotion, +rod&ct de3elo+ment, market re"earchand other ta"k" that are 3iewed a" the more intere"ting and e4citing +art" o# the o/.

Det +ricing deci"ion" can ha3e im+ortant con"e;&ence" #or the marketing organi ation and theattention gi3en /$ the marketer to +ricing i" &"t a" im+ortant a" the attention gi3en to morerecogni a/le marketing acti3itie". Some rea"on" +ricing i" im+ortant incl&de5

Mo"t


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c&"tomer" are more likel$ to di"mi"" a +rod&ct when all the$ know i" it" +rice. I# "o, +ricing

ma$ /ecome the mo"t im+ortant o# all marketing deci"ion" i# it can /e "hown that c&"tomer"are a3oiding learning more a/o&t the +rod&ct /eca&"e o# the +rice.

im+ortant Part o# Sale" Promotion Man$ time" +rice ad &"tment" i" +art o# "ale" +romotion" thatlower +rice #or a "hort term to "tim&late intere"t in the +rod&ct. 8owe3er, a" we noted in o&rdi"c&""ion o# +romotional +ricing in Part5 1 5 Sale" Promotion t&torial, marketer" m&"t g&ardagain"t the tem+tation to ad &"t +rice" too #re;&entl$ "ince contin&all$ increa"ing and decrea"ing

+rice can lead c&"tomer" to /e conditioned to antici+ate +rice red&ction" and, con"e;&entl$,withhold +&rcha"e &ntil the +rice red&ction occ&r" again.S%' % & '%. ,%''%+ 3.5,5+/ %;< , 5 6 ). :

Ma4imi e long-r&n +ro#it

Ma4imi e "hort-r&n +ro#itIncrea"e "ale" 3ol&me (;&antit$!Increa"e dollar "ale"Increa"e market "hareH/tain a target rate o# ret&rn on in3e"tment ( HI!H/tain a target rate o# ret&rn on "ale"Sta/ili e market or "ta/ili e market +rice5 an o/ ecti3e to "ta/ili e +rice mean" that the marketingmanager attem+t" to kee+ +rice" "ta/le in the market+lace and to com+ete on non+rime


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Ai"co&rage com+etitor" #rom c&tting +rice"

F"e +rice to make the +rod&ct 3i"i/le?&ild "tore tra##ic

8el+ +re+are #or the "ale o# the /&"ine"" (har3e"ting!Social, ethical, or ideological o/ ecti3e"Get com+etiti3e ad3antage

FACTORS EFFECTING DEMANDCon"ider the #actor" a##ecting the demand #or a +rod&ct that are

(1! @ithin the control o# a /&"ine"" and

( ! H&t"ide the control o# a /&"ine""5

'd3erti"ing "ale" +romotion

> T i i d i ti # th " l " #


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SETTING PRICING POLICY

STEP 1: SELECTING THE PRICING OBJECTIVES 5

The com+an$ #ir"t decide" where it want" to +o"ition it market o##ering. The clearer a #irm7"

o/ ecti3e", the ea"er i" to "et +rice. ' com+an$ can +&r"&e an$ o# #i3e ma or o/ ecti3e" thro&gh +ricing5 "&r3i3al, ma4im&m c&rrent +ro#it, ma4im&m market "hare, ma4im&m market "kimming,or +rod&ct ;&alit$ leader"hi+.

Com+an$ +&rcha"e "&r3i3al a" their ma or o/ ecti3e i# the$ are +lag&ed with o3erca+acit$, inten"e com+etition, or change in con"&mer want". '" long a" +rice" co3er 3aria/leco"t" and "ome #i4ed co"t", a com+an$ "ta$" in /&"ine"". S&r3i3al i" a "hort r&n o/ ecti3e inthe long r&n, a #irm m&"t learn how to add 3al&e or #ace e4tinction. Man$ com+anie" tr$ to "et +rice" that will ma4imi e c&rrent +ro#it". The$ e"timatethe demand and co"t" a""ociated with alternati3e +rice" and choo"e the +rice that +rod&ce"ma4im&m c&rrent +ro#it, ca"h #low, or ate o# ret&rn on in3e"tment. Thi" "trateg$ a""&me"that the #irm ha" knowledge o# it" demand and co"t #&nction" in realit$, the"e are di##ic&lt toe"timate. In em+ha"i ing c&rrent +er#ormance, a com+an$ ma$ "acri#ice long r&n +er#ormance

/$ ignoring the e##ect" o# other marketing mi4 3aria/le", com+etitor"7 reaction", and legalre"traint" on +rice.


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:ach +rice will lead to di##erent le3el o# demand and there#ore ha3e a di##er im+act on a

com+an$7" marketing o/ ecti3e". The relation /etween alternati3e +rice" and the re"&ltingc&rrent demand i" ca+t&red in demand c&r3e. In the normal ca"e, demand and +rice arein3er"el$ related the higher the +rice, the lower the demand. In thi" ca"e o# +re"tige good" thedemand c&r3e "ometime" "lo+e" &+ward. Per#&me Com+an$ rai"ed it" +rice and "old more

+er#&me" rather than le""O Some c&"tomer take" the higher +rice to "igni#$ a /etter +rod&ct.8owe3er i# the +rice i" too high, the le3el o# demand ma$ #all.

Hn the other hand, the im+act o# internet ha" /een to increa"e c&"tomer"7 +rice "en"iti3it$. In /&$ing a "+eci#ic /ook online, #or e.g. , a c&"tomer can com+are the +rice o##ered /$ o3er do en online /ook "tore" /$ &"t taking m$"imon.com. The"e +rice" can di##er /$ a" m&ch a"

) +ercent. The internet increa"e" the o++ort&nit$ #or +rice "en"iti3e /&$er" to #ind and #a3orlower-+rice "ite". 't the "ame time, man$ /&$er" are not that +rice "en"iti3e. McKin"e$cond&cted a "t&d$ and #o&nd that 9= +ercent o# internet c&"tomer" 3i"it onl$ 1 /ook "ite, 9*

+ercent 3i"ited onl$ 1 to$ "ite, and 91 +ercent 3i"ited onl$ 1 m&"ic "ite, which indicate" that

there i" a le"" +rice com+ari"on "ho++ing taking +lace on the internet that i" +o""i/le.

Com+anie" need to &nder"tand the +rice "en"iti3it$ o# their c&"tomer" and +ro"+ect" andtheir trade-o##" +eo+le" are willing to make /etween +rice and +rod&ct7" characteri"tic".

STEP #: ESTIMATING COSTS:


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T% ) ,%6 ,%+656 6 o# the "&m o# the #i4ed and 3aria/le co"t" #or an$ gi3en le3el o# +rod&ction.A .)/ ,%6 6 i" the co"t +er &nit at that le3el o# +rod&ction i# i" e;&al to total co"t di3ided /$ +rod&ction. Management want" to charge a +rice that will at lea"t co3er a total +rod&ction co"t ata gi3en le3el o# +rod&ction.ACCUMULATED PRODUCTION:

S&++o"e TI r&n" a +lant that +rod&ce" three tho&"and hand calc&lator" +er da$. '" TI gain"

e4+erience +rod&cing hand calc&lator", it" method" im+ro3e. @orker" learn "hortc&t",material" #low more "moothl$, and +roc&rement co"t" #all". The re"&lt "how", in that a3erageco"t #all" with the acc&m&lated +rod&ction e4+erience.

DIFFERENTIATED MARKETING OFFERS: Toda$7" com+anie" tr$ to ado+t their o##er" and term" to di##erent /&$er". Th&"a manact&rer will negotiate di##erent term" with di##erent retail chain". Hne retailer ma$

want dail$ deli3er$ (to kee+ "tock lower! while an other ma$ acce+t twice a week deli3er$ inorder to get a lower +rice. The manact&rer7" co"t" will di##er with each chain, and "o will it"

+ro#it".

TARGET COSTING Co"t" change with +rod&ction "ale and e4+erience. The$ can al"o change a" are"&lt o# concentrated e##ort" /$ de"igner", engineer" and +&rcha"ing agent" to red&ce them.


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Gi3en the three c"- the c&"tomer"7 demand "ched&le, the co"t #&nction, the com+etitor"7

+rice"- a com+an$ i" now read$ to "elect a +rice.Com+anie" "elect a +ricing method that incl&de" one or more o# 3ario&"

con"ideration". @e will e4amine "e3en +rice "etting method"5 mark-&+ +ricing, target ret&rn +ricing, +ercei3e 3al&e +ricing, 3al&e +ricing, going rate +ricing, action t$+e +ricing andgro&+ +ricing.MARK-UP PRICING 5 The mo"t elementar$ +ricing method i" to add a "tandard mark-&+ to the

+rod&ct7" co"t. Con"tr&ction com+anie" "&/mit o/ /id" /$ e"timating the total +ro ect co"tand adding a "tandard mark-&+ #or +ro#it.

S&++o"e a toa"ter manact&re ha" a #ollowing co"t and "ale e4+ectation

Earia/le co"t +er &nit .. 1)


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In increa"ing n&m/er o# com+anie" /a"ed their +rice on the c&"tomer7" +ercei3ed 3al&e. The$

m&"t deli3er the 3al&e +romi"ed /$ their 3al&e +ro+o"ition, and the c&"tomer m&"t +ercei3edthi" 3al&e. The$ &"e the other marketing mi4 element", "&ch a" ad3erti"ing and "ale" #orce, tocomm&nicate and enhance +ercei3e 3al&e in /&$er7" mind.

VALUE-PRICING 5In recent $ear", "e3eral com+anie" ha3e ado+ted 3al&e +ricing, in whichthe$ win lo$al c&"tomer" /$ charging a #airl$ low +rice #or a high ;&alit$ o##ering. 'mong the

/e"t +ractitioner" o# 3al&e +ricing are @' -M' T, IK:', and SHFT8-@:ST airline".

GOING RATE-PRICING:

In going rate +ricing, the #irm /a"i" it" +rice largel$ on com+etitor" +rice". The #irm might

charge the "ame, more, or le"" than ma or com+etitor". In oligo+oli"tic ind&"trie" that "ell acommodit$ "&ch a" "teel, +a+er, or #ertili er", #irm" normall$ charge the "ame +rice.

ACTION TYPE PRICING:

I" growing more +o+&lar, e"+eciall$ with the growth o# the internet. There are o3er )))electronic market +lace" "elling e3er$thing #rom +ig" to &"e 3ehicle" to cargo to chemical".Hne ma or &"e o# action" i" to di"+o"e o# e4ce"" in3entorie" or to &"e good. Com+an$ need" to


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PHYSIOLOGICAL PRICING:Man$ c&"tomer" &"e +rice a" an indicator o# ;&alit$. Image +ricing i" e"+eciall$ e##ecti3e withego-"en"iti3e +rod&ct" "&ch a" +er#&me" and e4+en"i3e car".

GAIN-RISK-SHARING PRICING:&$er ma$ re"i"t acce+ting a "eller7" +ro+o"al" /eca&"e o# the high +ercei3e le3el o# a ri"k. The

"eller ha" the o+tion o# o##ering to a/"or/ +art or all o# the ri"k i# he doe" not deli3er the #&ll

+romi"ed 3al&e.

THE INFLUENCE OF OTHER MARKETING MI@ES ELEMENTS:

The #inal +rice m&"t take into acco&nt the /rand7" ;&alit$ and ad3erti"ing relating to com+etition.

rand" with a3erage relati3e ;&alit$ /&t high relati3e ad3erti"ing /&dget" were a/le to charge

+remi&m +rice".

IMPACT OF PRICING ON OTHER PARTIES:

Management m&"t al"o con"ider he reaction o# other +artie" to the contem+lated +rice. 8ow willdi"tri/&tor" and dealer" #eel a/o&t itU @ill the "ale" #orce /e willing to "ale at that +riceU 8owwill com+etitor" reactU @ill "&++lier rai"e their +rice" when the$ "ee the com+an$7" +riceU @illthe go3ernment inter3ene and +re3ent thi" +rice #rom /eing chargedU


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. P.5, S +65 5 5 * The +rice "en"iti3itie" o# /&$er" "hi#t /a"ed on a n&m/er o# #actor" and

$o&r +ricing "trateg$ m&"t "hi#t with them.0. C%'3 5 5%+ Pa$ attention to them, /&t donVt co+$ them . . . when it come" to +ricing"trateg$ the$ ma$ ha3e no idea what the$Vre doing.

*. P.%9 , L5 ,*, . 8ow $o& +rice, and what 3al&e $o& +ro3ide #or that +rice, willchange a" $o& mo3e thro&gh the +rod&ct li#ec$cle.

P.5,5+/ ; %. *% ; 5 9

:"ta/li"hing a +ricing "trateg$ i" an acti3it$ that "ho&ld /e com+leted be ore $o& "tart +rod&ctde3elo+ment. The onl$ wa$ to acc&ratel$ determine how m&ch mone$ $o& can a ord to "+end onde3elo+ment, "&++ort, +romotion and the other co"t" a""ociated with a +rod&ct i" to anal$ e howm&ch o# that +rod&ct $o& will "ell, and at what +rice. ThatV" the heart o# a "&cce""#&l +ricing"trateg$.

U6 & R5/& C%6 6

' "&cce""#&l +ricing "trateg$ i" $o&r mean" o# making a +ro#it toda$, not o# reco3ering co"t""+ent a $ear ago. AonVt &"e the co"t o# de3elo+ing $o&r c&rrent +rod&ct a" the /a"i" #or it" +rice.In"tead, &"e the c&rrent co"t" o# de3elo+ing $o&r new +rod&ct" a" the /a"i" o# the +rice o# $o&rc&rrent +rod&ct.

R)56 P.5, % E=3 %5 ) R 5, +, % S75 ,&Hnce the c&"tomer i" $o&r", the "it&ation "witche" in $o&r #a3or. Hne o# the re"i"tance #actor"$o&r "ale" #orce enco&nter" on a new "ale i" reticence to "witch. 'n e4i"ting c&"tomer i" "till&nwilling to learn "omething new, onl$ now the$Vre a#raid to "witch < HM $o&, not TH $o&.


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training and "er3ice" #rom the +rod&ct it"el#, which will allow $o& to lower +rice witho&t

di"co&nting.

Strategic +ricing i" the e##ecti3e, +roacti3e &"e o# +rod&ct +ricing to dri3e "ale" and +ro#it", and tohel+ e"ta/li"h the +arameter" #or +rod&ct de3elo+ment. F"ed wi"el$ it i" a clearl$ +ower#&l tool#or "&cce""#&l marketing "trategie".

NEW PRODUCT-PRICING STRATEGY

Pricing strategies usually change as the product passes through its life cycle. The introductory stage isespecially challenging. Companies bringing out new product face the challenge of setting prices for thefirst time .

1 $ Market-skimming pricing

The +ractice o# B+rice "kimming7 in3ol3e" charging a relati3el$ high +rice #or a "hort time wherea new, inno3ati3e, or m&ch-im+ro3ed +rod&ct i" la&nched onto a market.

The o/ ecti3e with "kimming i" to "kimJ o## c&"tomer" who are willing to +a$ more to ha3e the

+rod&ct "ooner +rice" are lowered later when demand #rom the earl$ ado+ter"J #all".

h k $ l l$ d d h l $ d d


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> $ charging high +rice" initiall$, a com+an$ can /&ild a high-;&alit$ image #or it" +rod&ct.

Charging initial high +rice" allow" the #irm the l&4&r$ o# red&cing them when the threat o#com+etition arri3e". $ contra"t, a lower initial +rice wo&ld /e di##ic&lt to increa"e witho&tri"king the lo"" o# "ale" 3ol&me

> Skimming can /e an e##ecti3e "trateg$ in "egmenting the market. ' #irm can di3ide the marketinto a n&m/er o# "egment" and red&ce the +rice at di##erent "tage" in each, th&" ac;&iringma4im&m +ro#it #rom each "egment

> @here a +rod&ct i" di"tri/&ted 3ia dealer", the +ractice o# +rice-"kimming i" 3er$ +o+&lar, "incehigh +rice" #or the "&++lier are tran"lated into high mark-&+" #or the dealer

>


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C&"tomer" are then "old acce""orie" (which o#ten onl$ #it the manact&rer7" main +rod&ct! which

are "old at higher mark-&+".

e#ore im+lementing a +enetration +ricing "trateg$, a "&++lier m&"t /e certain that it ha" the +rod&ction and di"tri/&tion ca+a/ilitie" to meet the antici+ated increa"e in demand.

The mo"t o/3io&" +otential di"ad3antage o# im+lementing a +enetration +ricing "trateg$ i" thelikelihood o# com+eting "&++lier" #ollowing "&it /$ red&cing their +rice" al"o, th&" n&lli#$ing an$

ad3antage o# the red&ced +rice (i# +rice" are "#icientl$ di##erentiated the im+act o# thi"di"ad3antage ma$ /e dimini"hed!.

' "econd +otential di"ad3antage i" the im+act o# the red&ced +rice on the image o# the o##ering, +artic&larl$ where /&$er" a""ociate +rice with ;&alit$.

PRODUCT-MI@ PRICING STRATEGIES

The "trateg$ #or "etting the +rod&ct7" +rice o#ten ha" to /e changed when the +rod&ct i" +art o#a +rod&ct mi4. In thi" ca"e the #irm look" #or a "et o# +rice" that ma4imi e" the +ro#it on thetotal +rod&ct mi4. Pricing i" di##ic&lt /eca&"e the 3ario&" +rod&ct" ha3e related demand andco"t and #ace di##erent degree" o# com+etition5

P.%9 , L5+ : Setting +rice "te+" /etween +rod&ct line item" (#or e4am+le. 8onda Ci3ic i"


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P.%9 , B +9 : Pricing /&ndle" o# +rod&ct" "old together (#or e4am+le Ne"ca#e i" o##ering it"

co##ee along with it" c&+ #or 1)) r&+ee" th&" their o##er i" "imilar to +rod&ct /&ndle /e"ide" thatdi##erent com/o deal" o# K


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U+5 %.' D 5 . 9 P.5,5+/: ' geogra+hical +ricing "trateg$ in which the com+an$ charge" the

"ame +rice +l&" #rightened to all c&"tomer", regardle"" o# their location.( #or e4am+le . e3er$c&"tomer ha3e to +a$ a "imilar and "+eci#ied amo&nt o# mone$ to Nike i# the$ are tran"acting#rom a/road!

>%+ P.5,5+/: ' geogra+hical +ricing "trateg$ in which the com+an$ "et" &+ to or more one".'ll c&"tomer" within a one +a$ the "ame total +rice the more di"tant one, the higher the +rice.( #or e4am+le. I# 'dida" i" tran"acting with it" c&"tomer" #rom a/road region" then the$ will

charge #reight according to the di"tance o# the region and a" the di"tance will increa"e #reightcharge" will al"o increa"e.!

B)65+/ P%5+ P.5,5+/: ' geogra+hical +ricing "trateg$ in which the "eller de"ign" "ome cit$ a"a /a"ing +oint and charge" all c&"tomer" the #reight co"t #rom that cit$ to the c&"tomer. ( #ore4am+le. Aell com+&ter" e"ta/li"hed their /a"ing +oint in India and then deli3er" their +rod&ct" inthe '"ian region" charging #reight #rom that region!

"$ I+ .+) 5%+) :ad &"ting +rice" in international market". (


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Strategie" ,0and 6 are wa$" to attack the diagonal +o"ition". Strateg$ to "a$7" H&r

+rod&ct ha" the "ame high ;&alit$ a" +rod&ct 1 /&t we charge le""J. Strateg$ 0 "a$" the "amething and o##er" and e3en greater "a3ing. I# ;&alit$-"en"iti3e c&"tomer" /elie3e the"e com+etitor",the$ will "en"i/l$ /&$ #rom them and "a3e mone$ (&nle"" #irm earn" 17" +rod&ct ha" ac;&ira/le"no/ a++eal.

Po"itioning "trategie" *,2and 9 amo&nt to o3er-+ricing the +rod&ct in relation to it" ;&alit$. Thec&"tomer will #eel taken and will +ro/a/l$ com+lain or "+read /ad word" o# mo&th a/o&t the

com+an$.


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,ummation of -bjecti#es

> 'rofit objecti#es e.g.

1 Targeted profit return

1 $aximi+e profits

> ?olume@,ales objecti#es e.g.

1 "ollar or unit sales growth

1 $arket share growth

> ,tatus1>uo objecti#es e.g.


30/131

> ost of the product

> ompetition

1 "irectly similar products

1 A#ailable substitutes

1 Bnrelated products

> -ther marketing mix elements

1 'roduct

1 "istribution channels

1 'romotion

PHILIP KOTLER HAVE IDENTIFIED PRICE UALITY STRATEGIES:NINE PRICE UALITY STRATEGIES


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FACTORES AFFECTING PRICING DECISION


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33/131

O 5/%3% 56 5, C%'3 5 5%+:


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35/131

RESPONDING TO COMPETITORS PRICE CHANGES: 8ow "ho&ld a #irm re"+ond to a +rice c&t initiated /$ a com+etitorU In market"characteri ed /$ high +rod&ct homogeneit$, the #irm "ho&ld "earch #or wa$" to enhance it"a&gmented +rod&ct".

Market leader" #re;&entl$ #ace aggre""i3e +rice c&tting /$ "maller #irm" tr$ing to /&ilt

market "hare. F"ing +rice,


36/131

-bjecti#es of 'ricing

=Short-term profit maximization=Short-term revenue maximization=Maximize quantity=Maximize profit margin=Differentiation=Survival

Price is what you pay.


37/131

SURF E@CEL 8

JA>>8

MC DONALDS8

COKE8 PEPSI 8

NIRMA

FOOD BA>AAR

T3e Tr+)(&er Pr, e D,#emm+

E Tr+)(&er 'r, e F cost assessed when a product

is mo#ed from one profit center to another

E Pr$&,* e)*er F any part of an organi+ation to

which re#enue and controllable costs can be


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39/131

PRICING STRATEGY BY PAN PI>>A


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42/131

PRICING STRATEGY OF JA>>

RATES NETWORKS

.1 Pai"a

99 Pai"a

'WW TH 'WW

'WW TH HT8:


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It i" well known /rand o# Mo/ilink. Pre3io&"l$ Mo/ilink wa" o##ering a connection #or

a/o&t 0))) r&+ee" $ear" ago. It" market oriented "tatement i" '&r S&naoJ &t thro&gh the +a""age o# time Ynow Mo/ilink i" o##ering a connection" #or a/o&t 1)) r&+ee". In ))F#one which i" one o# the leading com+etitor o# a introd&ced it7" +re+a$ connection #ora/o&t )) r&+ee". In )) Telenor came into e4i"tence in Paki"tani market and o##ered it"connection" #or a/o&t )) r&+ee". Then in )) @arid al"o entered the market o##ering it"connection" #or ) r&+ee". In thi" wa$ +rice war "tarted /etween the"e telecom /rand" in the

market. Pre3io&"l$ it wa" a 7" oligo+ol$ a" the$ o##ered their +rice". In )) a o##ered acell+honeRconnectionR+re+aid card im+lementing a +rod&ct-/&ndle +ricing "trateg$ #orcreating more attention and attraction. The ma or "hi#t in the +ricing "trateg$ came in whenthe$ "tarted 0)."econd o+eration" &"ing the +romotional +ricing "trateg$. In the earl$ da$"

a wa" o##ering it" "im-card" #or a high-+rice &"ing ca+ti3e-+rod&ct +ricing "trateg$ a" it""im-card i" a main +rod&ct that m&"t /e &"ed along with the cell +hone. Initiall$ a 7" call rate" and "m" charge" were al"o red&ced &"ing di"co&nt and

allowance "trateg$ and initiall$ directing toward" +romotional "trateg$ a" the com+etition /etween cell&lar /rand" in the market grew #a"ter. ecentl$ a introd&ced it" o##ering" o#).== +er min&te call rate" in their ha++$ ho&r +ackageJ which re+re"ent" their o+eration"with the +romotional a" well a" +"$chological +ricing o# their "er3ice". Thro&gh it" ha++$ ho&r +ackage the$ are al"o o+erating with +romotional "trateg$ a"the$ are engaged in contin&o&" +romotion thro&gh their o##ering". e"ide" that a ado+ted"egmented +ricing "trateg$ a" the$ were charging di##erent call rated #rom one cit$ to another

/&t it" com+etitor" ha3e emerged tremendo&"l$ the$ ha3e re"+onded e##icientl$ toward" theiraction" thro&gh c&tting their +ricing mainl$ a++l$ing +romotional and +"$chological "trateg$.


44/131

PRICING STRATEGY OF PEPSI


45/131

*) " 1. lit

" . lit

In o&r "ociet$ Pe+"i o#ten red&ce" it" +rice" d&ring the hol$ month o# amadan and at the time o#:id. In thi" wa$ the$ ado+t +romotional +ricing "trateg$. :3en i# $o& notice on their o##ering"the$ are &"ing +rod&ct-line +ricing "trateg$ a" the$ are o##ering di##erent ;&antitie" with di##erent

amo&nt o# mone$. In di##erent "ector" Pe+"i ha3e al"o ado+ted "egmented +ricing "trateg$ a" it" +rice" are m&ch higher in l&4&rio&" hotel" and other "ector". It" main com+etitor i" Coca-colawhen it come" to "o#t-drink". Coca-cola ha3e al"o made 3ario&" e##ort" thro&gh di##erent +ricing"trategie" and o##ering" /&t Pe+"i ha3e al"o re"+onded e##ecti3el$ toward" their action" thro&ghinitiating +rice c&t" at the right time #or e4am+le. In the month o# amadan whene3er Coca-colared&ce" their +rice" Pe+"i al"o re"+ond" thro&gh +rice c&t" and then e3ent&all$ a#ter that +eriod itri"e" it" +rice". 8owe3er /&$er7" reaction" ha3e not /een m&ch a##ected the com+an$ in the long-

r&n. Pe+"i ha3e alwa$" o+erated their "ale" thro&gh +romotional and +h"$cologilical +ricing"trateg$ and the great e4am+le #or thi" can /e their recentl$ o##ered deal which i" . litre o#

+e+"i in r&+ee".


46/131

$c"onald s


47/131

S*+r B+4++r Pr, ,) Err$r

hocolate %orlicks "isplayed

priceF Rs. 250@1 hargedF Rs.

293.80

5 Toor "aal H900g $R'F Rs. 57.00

hargedF Rs. 80.97

6 %imani $udpack $R'F Rs. 40.00

hargedF Rs 77 00

N5 ') %'3)+*


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*9

N5. ) ,% 3)+*

,tarted as a one1product one1man outfit in /7:7 by a chemist Karsanbhai 'atel.= The new yellow powder detergent was priced at Rs. 5.90 per kg at a time when %


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50/131


51/131

1


52/131

M+r e* e)*r2 (*r+*e 2


53/131


54/131

differentiate

*


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Price com+etition


56/131


57/131

2


58/131

9

)on price competetion


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=


60/131

6)

"iscounts and allowances

> uantity discounts

> Trade discounts

> ash discounts

> Rebates


61/131

61


62/131

6


63/131

60

4

4

4

4

>uantity discount


64/131

A,% "I, -B)T

6*


65/131

TRA"( "I, -B)T

6


66/131

SPECIAL PRICING STRATEGIES

66


67/131


68/131

-"" 'RI I)*69


69/131

(thical dilemma= Lhich software would you upgrade firstprice1rise or price1reduction

6=


70/131

'RI ( LAR, !(TL(() -K( A)" '(',I

(stablished 1 okeF /44:M 'epsiF /475= /755F 'epsi struggling to sta#e off bankruptcy. "ropped priceof its /0c /2 o+. bottle to 9c making it a better #alue Hdiscount= Ad jingle of 'epsi Ntwice as much for a nickelO better known inthe B, than the oke ad

Pe+"i kee+" +rice ad3antage thro&gh 6)" and 2)", when Pe+"i charged it" /ottler") le"" #or it" concentrate (trade di"co&nt!

u @ith ri"ing ingredient co"t", Pe+"i co&ld no longer o##er twice a" m&ch #or the"ame +rice. So it rai"ed +rice to Coke7" le3el gi3ing it a war che"t to #&el an

2)

aggre""i3e ad cam+aign


71/131

aggre i3e ad cam+aignu attle "hi#ted #rom Price to L&alit$ , with Pe+"i targeting the $o&thu @hat #ollowed wa" the Pe+"i Challenge eal ThingJ Coke ad"

Percei3ed ;&alit$ ca&ght &+. Aee+er +ocketed and lower co"t Coke initiated a +rice war in "electi3e market" where Pe+"i wa" weak in the 2)". (Geogra+hicalPricing!u Hther com+anie" mo3ed into the lower le#t ;&adrant o# the market. (market

+enetration +ricing! &t the two ma or +la$er" #orced +rice down to &ltimate3al&e.Ju To /reak +rice "+iral, Coke la&nched New Coke to kee+ Coke lo$al" and ind&ce"witching among Pe+"i /&$er". (market "kimming! e ected /$ market.u Attempts are on to move to next arena via niches in caffeine and sugar substitutes

21


72/131

2


73/131


74/131

2*


75/131

2


76/131

26


77/131

22

PRICE REDUCTIONTO INCREASE MARKET SHARE


78/131

29


79/131

2=


80/131

9)


81/131

91


82/131

9

CHNC FSIHN

E -ne of the four major elements of the

marketing mix is price. 'ricing is an important

strategic issue because it is related to product

positioning. 6urthermore pricing affects other

marketing mix elements such as product

features channel decisions and promotion.

E Lhile there is no single recipe to determine

pricing the following is a general se>uence of

steps that might be followed for de#eloping

the pricing of a new product


83/131

90


84/131

9*

SWOT ANAL!SIS


85/131

STRENGT :

$ulti1channel distribution and one of the largest distribution networks in India.

Implementing ,ix1,igma process.

ustomer centric products and ser#ices.

/ $illion 'R-"B T, sold within 5 and half years.

ompany has maximum number of t ra ined employees as well as good number of

legal ad#isors.

Training process of the company is #ery strong.

"ifferent plan for different products

Acc ordi ng to the ch ange in su rrounding en #i ronment li ke ch ang es in custo mer

re>uirement.

9

WEAKNESS:


86/131

-$'A); does not penetrate on the rural market at a time.

There is no plan for the low income group.

6ees for the ad#isor is high than the other company.

OPPORTUNITY:

market is very big, where company can expand its horizon in the industry.

Though good in#estment it is easy to top Indian customers.

The huge market H33G is left so company has opportunity to expand our products.

To associate with the more number o f customers

THREATS:

P-


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2 There must be some objecti#es to be attained.


88/131

3 There must be some alternati#e means to obtain the objecti#es.

4 There must be some en#ironment.

W32 %e (*1 2 re(e+r 3 me*3$ $#$ 2;

1 To get an inside about e#ery knowledge.

2 To determine the association of one acti#ity with another acti#ity.

3 To determine the characteristics of an indi#idual or a group of indi#iduals or #arious acti#ities or their

fre>uency of occurrence.

Im'$r*+) e $& re(e+r 3 me*3$ $#$ 2 ,) m+)+ eme)*:

%elps the managers to take good decisions.

'ro#ide the managers more knowledge and better information.

99

%elps the management for new product de#elopment.


89/131

A#ailability of impro#ed techni>ues and tools to meet this need

%elps in customer satisfaction

T2'e( $& re(e+r 3:Two types of research are there.

'#$r+*$r2 re(e+r 3

5= C$) #1(,?e re(e+r 3.C%+, 65 . 6 ).,& 56 . & . 95 59 9 5+ % D 6,.53 5 . 6 ).,& )+9 E=3 .5' + ) 5%+ . 6 ).,&

S$1r e( $& +*+ $##e *,$):There are two sources of data collection.

Pr,m+r2 ($1r e( F

The data are collected directly from the uni#erse by conducting inter#iews etc. these are the original

sources from which the researcher directly gathers data which are not pre#iously referred.

Se $) +r2 ($1r e(:

The data are collected from the secondary sources such as maga+ines journals

etc. These sources consist of already #ariable data in the form of statements

9=


90/131


91/131

UESTIONNAIRES ARE OF TWO T!PES:

'! O'e) e) e 1e(*,$))+,re

It consists of open ended >uestions that allow the respondent to answer in their own words. ,uch

>uestionnaires re#el more because they do not constraint respondent s answers.

! C#$(e e) e 1e(*,$))+,re

This >uestionnaire consists of >uestions that pre1specified all the possible answers tabulation and

interpretation of such uestionnaires are easier as compare to open ended >uestionnaire.

Pr$ e(( $& re(e+r 3 me*3$ $#$ 2:There are different steps in#ol#ed in the process of research methodology. They are as followsF

F$rm1#+*,$) $& *3e 'r$0#em:

Research design

,ources of data collection

"etermining sample design and sample si+e

-rgani+ing and conducting field sur#ey

Analysis of data

=1

Research report


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S+m'#,) '#+):-

It includes all the information about uni#erse sample si+e sample unit sampling method sampling

procedure and contact method sampling frame data processing and place of information.

S+m'#e (,4e- 400

T2'e $& S*1 2- "escripti#e Research HBnder conclusi#e Research

S+m'#,) 'r$ e 1re 1 Judgment and on#enience ,ampling as met personally.

C$)*+ * me*3$ 1 'ersonal.

S*+*,(*, +# *$$#( &$r D+*+ A)+#2(,(

1. ,i+e of products2. 'acking artons H)o. of arton re>uired5. $R' per@unit8.


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DATA ANAL!SIS AND INTEREPRETATION

=0


94/131

RESEARCH METHODOLOGY

' detailed "&r3e$ o# con"&mer" wa" carried o&t to #ind o&t their +re#erence" #or CHC' CH ' the detail" o# themethodolog$ are "tated /elow5

AREAS:

DELHI (GK-1, GK- , ' P'T N'G' , N:8 F N'G' , S'K:T!

GHA>IABAD (Gandhi Nagar, Ka3i Nagar, a nagar, "ha"tri nagar, ka&"ham/i!

T2'e $& Re(e+r 3 F (xploratory Research

"escripti#e resarch=*


95/131


96/131

9/G87G male

female

F5/ 1

Ta/le1

H&t o# 9)) con"&mer", 1 are male" and onl$ *= are #emale" .=6

?alid $ale 80: 9/.0 9/.0 9/.06emale 578 87.0 87.0 /00.0

Total 400 /00.0 /00.0

6re>uency

'ercent

?alid'ercent

umulati#e

'ercent


97/131

2 AGE GROUP OF THE CONSUMER

=2


98/131

58G

24G

22G

/5G5G

!(


99/131

# OCCUPATION OF THE CONSUMER

6re>uency 'ercent ?alid'ercent umulati#e 'ercent?alid 'rofession

al /00 /5.0 /5.0 /4.0

!usinessman 39 7.0 7.0 22.0

,er#ice 2/0 2:.0 2:.0 84.0,tudent 570 87.0 87.0 73.0

Any other 29 5.0 5.0 /00.0

Total 400 /00.0 /00.0 /00.0T); 2

==


100/131

/5G

7G

2:G

87G

5G

'R-6(,,I-)Auency 'ercent

?alid'ercent

umulati#e 'ercent

?alid ;es 338 73.0 73.0 73.0

)o 2: 5.0 5.0 /00.0Total 400 /00.0 /00.0

Ta/le 0


102/131

? COLD DRINKS PEOPLE BUY

6re>uency 'ercent ?alid 'ercent umulati#e 'ercent?alid -K( /9/ /4.4 /4.4 /4.4

'(',I /82 /3.39 /3.39 5:.99

3 B' 7: /2 /2 84.99

,'RIT( 47 //./2 //./2 97.:3

6A)TA:7 4.: 4.: :4.23

$AQQA :3 4.5 4.5 3:.93

T%B$,B' /4: 25.2 25.25 /00.0

Total 400 /00.0 /00.0

1)

Ta/le*


103/131

Ta/le*

/7G

/4G

/2G//G

7G

4G

25G.-K('(',I

3 B'

,'RIT(

6A)TA

$AQQA

T%B$,B'


104/131

?alid !randname /:0 20.0 20.0 20.0

Taste 208 29.0 29.0 89.0!randambassador

44 4.0 4.0 95.

0packaging /94 /0.0 /0.0 :5.0(asya#ialability :: /:.0 /:.0 37.0

'rice /28 20.0 20.0 77.0 Any other 4 /.0 /.0 /00.0Total 400 /00.0 /00.0

Table 9

1)*

TA,T(


105/131

29G

20G

20G

/9G

//G

4G /G !RA)" )A$(

'A.KA*I)*

'RI.(

!RA)" A$!A,,A"-R

(A,; A?IA


106/131

Ta/le 6


107/131

!9.5+ 6 PEOPLE REMEMBER THE MOST

6re>uency 'ercent ?alid 'ercent umulati#e 'ercent?alid -K( < 23.0 23.0 23.0 '(',I < 24.0 24.0 99.0

3 B' /:.0 /:.0 3/.0

,'RIT( 2/.0 2/.0 72.0

6A)TA 65 8.0 8.0 7:.0

Total

$AQQA5.0 5.0 77.0

T%B$,B' < < /.0 /.0 /00

T$*+# /00 /00

Ta/le 2

1)2


108/131

25G

25G

//G:G

8G

/0G

25G.-K(

'(',I

3 B'

,'RIT(6A)TA

$AQQA

T%B$,B'

6ig40 +eo+le remem/er CHK:0 +eo+le remem/er P:PSI

11 +eo+le remem/er 2FP6 +eo+le remem/er SP IT:* +eo+le remem/er uency 'ercent

?alid'ercent

umulati#e 'ercent

? lid i i / 8 28 0 28 0 28 0


109/131

?alid reati#ity /78 28.0 28.0 28.0!randambassador

/7: 29.0 29.0 87.0

Idea ofdeli#eringmessage

70 //.0 //.0 :0.0

6re>uencyof add 208 29.0 29.0 49.0


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* +eo+le remem/er the ad3erti"ement /eca&"e o# C :'TIEITD. +eo+le remem/er the ad3erti"ement /eca&"e o# 'NA 'M 'SS'AH

11 +eo+le remem/er the ad3erti"ement /eca&"e o# T8:I IA:' H< A: IE: ING T8:M:SS'G:.

+eo+le remem/er the ad3erti"ement /eca&"e o# < :LF:NCD H< 'AA.1 +eo+le remem/erthe ad3eri"ement /eca&"e o# HGIC' :'SHN.COLA DRINK PEOPLE BUY

1 CHI-S UARE TEST,%++ , 5%+6

O;6 . 9 N E=3 , 9 N R 659 )CHK:1 1 114 # 10? "

P:PSI1* 114 # -101 #

2 FP=6 114 # -2 #

SP IT:9= 114 # "? "


111/131

T); T 6 S ) 56 5,6

C%++ , 5%+6

C&5-S ). ()$ 44" 2 0D

A6*'3 S5/ 000a ) cell" (.) ! ha3e e4+ected #re;&encie" le"" than . The minim&m e4+ected cell fre>uency is //8.5.

Ta/le 1)

8H-there i" no "igni#icance di##erence /etween the +re#erence" o# con"&mer" regarding the CH A A INKSU81-there i" a "igni#icance di##erence /etween the +re#erence" o# con"&mer" regarding the CH A A INKSU

IF H0 0? OUR + H*3% & 656 56 . < , 9 )+9 5+ &56 ,)6 H0 IS REJECTED THAT ' )+6 ,%+6 ' .6 3. . +, 6 %. D.5+ 6 ). 95 . +

111

1 1 :SPHNA:NTS /&$ CHK: 1* /&$" P:PSI =6 2FP 9= con"&mer" +re#er SP IT: 6= +re#er


112/131

1 1 :SPHNA:NTS /&$ CHK:, 1* /&$" P:PSI, =6 2FP, 9= con"&mer" +re#er SP IT:, 6= +re#er


113/131

ADVERTISEMENT PEOPLE REMEMBER THE MOST

. CHI-S UARE TEST

O;6 . 9 N E=3 , 9 N R 659 )CHK:

1! 1## # -4? #

P:PSI1!! 1## # - " #

2 FP!4 1## # #0 "

SP IT:4! 1## # - #


114/131

C&5-S ). ()$ 101 0?

D ?

A6*'3 S5/ 000) 0 , 6 ( 0 $ &) =3 , 9 . +,5 6 66 &)+ ? T& '5+5' ' =3 , 9 , . +,* 56 1## #

T); 12

IF H0 0? OUR + H*3% & 656 56 . < , 9 )+9 5+ &56 ,)6 H0 IS REJECTED THAT ' )+6 ,%+6 ' .6 . ' '; . 95 . + 95 . + )9 . 56 ' + 6

19= +eo+le remem/er the ad3erti"ement o# CHK:, 199 +eo+le remem/er the ad3erti"ement o# P:PSI, 9* +eo+leremem/er the ad3erti"ement o#2FP,*9 +eo+le remem/er the ad3erti"ement o#SP IT:,0 +eo+le remem/er thead3erti"ement o# M'WW', 'NA 191 +eo+le remem/er the ad3erti"ement o# T8FMSFP.REASON TO PURCHASE A COLD DRINK

0. FRIEDMAN TESTR)+ 6

11*


115/131

D


116/131

A6*'3 S5/000

a


117/131

REASON TO REMEMBER

*. F.5 9')+ T 6R)+ 6

M )+ R)+ C. ) 5 5 *

# 1

B.)+9 )';)66)9%. 4 2#

I9 ) % ' 66)/1 10

F. +,*4 2

L%/5,) . )6%+2 4#

T); 1?

112

T 6 S ) 56 5,6()$

N


118/131

N!00

C&5-S ).4 2 4"

D

A6*'3 S5/00#

) F.5 9')+ T 6Ta/le 16 .

H0 - there i" no "igni#icance di##erence /etween all the #actor" TH :M:M : T8: +ricingH1 -there i" a "igni#icance di##erence /etween all the #actor" TH :M:M : T8: +ricing

IF H0 0? OUR + H*3% & 656 56 . < , 9 )+9 5+ &56 ,)6 H0 IS REJECTED THAT ' )+6 ,%+6 ' .6. ' '; . & )9 . 56 ' + % )+* COLA DRINK ; ,) 6 % 6%' ), %.68

'NA the mean rank #or idea o# deli3ering the me""age i" 1.1) T8'T mean" CHNSFM: S don7t care a/o&t the idea

o# deli3ering the me""age.

MAJOR FINDINGS

1. H&t o# 9)) con"&mer", 1 are male" and onl$ *= are #emale".

119

. Ma4im&m n&m/er o# +eo+le "&r3e$ed i" /elow 1 $ear"


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0. H&t o# 9)) +eo+le 10 are +ro#e""ional", = are /&"ine""man, 6 are "er3iceman, and *= are"t&dent".

*. H&t o# 9)) re"+ondent", =2 o# con"&mer" /&$ cold drink" and onl$ 0 o# them do not /&$.

.1= re"+ondent" +re#er coke, 19 +re#er +e+"i, 1 2&+, 11 o# them +re#er"+rite, = #anta, 9 +re#er ma a, and 0 +re#er th&m"&+

6. +eo+le +&rcha"e cold drink" /eca&"e o# ta"te, ) +eo+le +&rcha"e cold drink" /eca&"e o# /rand name, ) +eo+le +&rcha"e cold drink" /eca&"e o# +ackaging,1 +eo+le +&rcha"e cold drink" /eca&"e o# +rice ,11 +eo+le +&rcha"e cold drink" /eca&"e o# /rand am/a""ador 9 +eo+le +&rcha"e

cold drink" /eca&"e o# ea"$ a3ila/ilit$1 +eo+le +&rcha"e cold drink" /eca&"e o# an$ other rea"on.

2. H&t o# 9)) con"&mer" =9 ha3e "een the ad3erti"ement and onl$ ha3e not "een thead3erti"ement o# an$ chi+"

9. 0 +eo+le remem/er the ad3erti"ement o# coke, 0 +eo+le remem/er the ad3erti"ement o#.+e+"i,1 +eo+le remem/er the ad3erti"ement o# 2&+, 6 +eo+le remem/er the ad3erti"ement o# "+rite, *

+eo+le remem/er the ad3erti"ement o# #anta, 1)'urchasing power is the most important role to play with in any 6$ *

organi+ation as per my project is concerned it suggests that o#erall 58G of the Retailers who are

purchasing the 'arle1Agro 'roduct are actually spending on the product would be around Rs. /900

11=

to Rs. 5000 Lhile more than ::G of Retailers spending is less than Rs. /900. H'lease refer the

Annexure for further details


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redit period should be taken into consideration while working out for working capital.H'lease refer

the table no.7 for further details

As per my sur#ey suggested that the better distribution network of pepsi should be enhanced to thatextent where its Retailers would reach the maximum satisfaction. H'lease refer the table no.2 for

further details

'epsi is ha#ing the suitable distribution ,trategy for hotels. oming to other segment it should treat

oca1 ola as bench mark and based on that they can start distribution.H'lease refer the table no.2

for further details

ompany wants to design a point of purchase

'ush and pull is most important to understand for the company. H'lease refer the table no.8 for

further details

The existing pricing scheme is unable to kill the competitors. H'lease refer the table no.3 for further

details

1 )


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:CHMM:NA'TIHNS SFGG:STIHNS

1) Even though most of the customers are satisfied with pricing,though some more effective pricing should

be done so that the customers do not switch.

2) The company should find out the no. of people who prefer competitors brand on the base of pricig andalso find out the reason why.

1 1

3) Some schemes should be introduced so that customers feel priveledged.


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8 ompany should try different le#el of pricing so that they can find out that what le#el of pricing

satisfies the customer the most.

9 ompany should target each and e#ery class of the society.

: -$'A); should pro#ide full information to the customers before targeting so they can take

interest.

'roduct differentiationF -ffering a product that is distinctly different from other products a#ailable in the

market.

Inno#ati#enessF Identifying means of a delightful customer experience.

RidersF These are additional offerings along with the main product.

6lexibilityF The ompany should make their products flexible for the con#enience of their customer 1

IMIT'TIHN H< T8: STFAD

The sur#ey report that was conducted had a pre1defined boundation of


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inter#iewing the retail outlet owners. ItDs based on simple obser#ational analysis which may lead todeflection at the time of conclusion arri#al.

Le considered at Indore region only because of limited time duration.

"ue to this our sample si+e is only 70 which is not #ery large.

uestionnaire on their own due problem of time and lack ofpositi#e beha#ior.

The actual information was not disclosed.

1 0


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6 5%++)5.

N+me:..................................... A e:HHHHH..

O 1'+*,$):HHHHHHH..

1e(.< W3, 3 'r$ 1 * $ 2$1 1(e;

1 *

+= ($&* r,) ( 0= m,)er+# %+*er = ($ +


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$mme)*

1e(.5 Are 2$1 (+*,(&,e %,*3 *3e 'r, ,) $& *3+* '$ 1 *;

+= !e( 0= N$

$mme)*

1e(.6 W3+* *2'e $& 'r, ,) ( 3eme( $ 2$1 're&er;

+= HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH.

0=HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH..

1

=HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH..

=HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH..


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1e(. Are 2$1 1(,) (,m,#+r 'r$ 1 * $& +)2 $*3er $m'+)2;

+= !e( 0= N$

$mme)*

1e(.7 ,& 2e( *3e) %3+* +re 2$1r ?,e%( +0$1* *3e 'r, ,) $& *3e,r 'r$ 1 * ;

$mme)*

1 6


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1e(. AN! (1 e(*,$)( %$1# 2$1 #, e *$ ,?e;


128/131

+= !e( 0= N$

$mme)*

S1 e(*,$)(:

1 9


129/131

BIBLOGRAPHY

1 =

B$$ (


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the strategy and tactics by Reed k %olden

'ower pricing by %erman simon

'ricing for profitability

We0(,*e(

ocacolaindia.com

'epsicoindia.co.in

,urfexcel.in

$cdonalds.com

)irma.co.in

Ja++smart.co.in

10)


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