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Presentation on Retail

Pricing

Group:

Manoj Panjwani

Nitesh Khanna

Prerna BhadaniRaghav

Sangeev Jha

Swapnil Karn

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Understanding Price As a

Concept.

Price is the monetary value assigned by the seller to something

purchase.

A transaction by a buyer as their willingness to pay for the benefits the

products delivers.

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Price Sensitivity.

Elasticity = % change in quantity demand

-------------------------------------------------------

% changes in any demand determinant

Different price points affects demand of particular merchandise

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Major Factors Affecting Price Sensitivity

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Cost-Oriented pricing

Approaches To Pricing The retail Product.

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Demand-Oriented Pricing

Conti

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Example

Discrimination pricing

Skimming Pricing

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Pricing Near to cost ratherthan at a loss

LeaderPricing

Match the market pricesof competitive retailers

CompetitivePricing

When a company orbrand wants to establishquickly in a market

MarketPenetration

Pricing

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Example

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Psychological Pricing or odd Pricing

Retailers will often price products below around figure e.g.:- 100 to 99.50 or

99.99

Everyday Low Pricing

Prices at a level between the normal storeprice & the price of the deep discountcompetitors.

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Psychological Pricing or odd Pricing

Example

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BenefitsofEDLP

Perception of Fairness

ReducedAdvertising

Improved CustomerService Management

Reduced Stock outs andImproved InventoryManagement

Increased Profits Margins

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Relationships Between

Pricing And Value

Value Quality Price Image

Value as low price,

Value as whatever is wanted from a product,

Value as the quality one gets for the price paid,

Value as what one gets for what one gives.

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Consumer travel cost (petrol expenses, etc.)

Parking charges

Level of traffic congestion

Free transit scheme

Pricing mix changes

Need of multi purpose visits

Other Cost and Therefor Pricing Implications..

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Competitor activity affecting demand. Inadequate original pricing policy.

Merchandise did not meet consumer needs or preferences.

Overstocking or poor stock keeping.

Quality of merchandise inferior due to manufacturer or damage.

Need to release the display space for other merchandise.

A policy to improve customer goodwill through markdowns.

Sales staff not being properly trained or encouraged.

Economic or seasonal problem.

Why Markdown Price Policy Consider By

Retailers?

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Value pricing Promotional pricing

Low interest financing Psychological

discounting Special event pricing

Differentiated Pricing Time pricing

Bundling

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Time pricing Value Pricing

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Bundling