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 COST-PLUS PRICING
 MULTIPLE PRODUCT PRICING
 TRANSFER PRICING
 PEAK-LOAD PRICING SYSTEM
"Customers want high quality
 at low prices and they want
      it now." – Bill Gates
 1) PERFECT COMPETITION
 2)IMPERFECT COMPETITION
    › MONOPOLISTIC COMPETITION
    › OLIGOPOLY
    › MONOPOLY
ITC has diversified presence in:
   Cigarettes
   Hotels
   Packaging
   Personal care
   Agri-based business
   Branded apparel
   Safety matches
   Greeting cards
 Main objective was to compete effectively
  with players who are already there. Hence,
  it launched direct frontal attack by
  introducing similar priced product.
 ITC already enjoyed advantages over
  competitors through e-choupal initiative.
  This also facilitate timely supply of raw
  material.
 ITC’s printing and packaging business also
  leads to high quality, cost effective and
  innovative products.
    The company dose not raise the price of its
    most selling brand(Gold Flake (S)) so that it can
    get max market share and earn money on its
    premium brands(Insignia).
   The cost structure of the company plays a
    major role in determining the prices the various
    stages and the companies cost structure is as
    follows:- Fixed Cost(Plant operations)
    .69% &Variable (manufacturing , packaging
    etc. 99.31%)
    Further on the company cannot afford to raise
    its mark-up due to the presence of intense
    competition.
 Cost of raw material is same for every
  industry
 Logistics
 Labor
 Larger the Quantity lower the production
  cost
 Target market
 Brand value
 Government policy
 Form of market
 Whole sales
 supply chain
 compititors
 Study of market
 Cost calculation
 Production expenses
 Channel of supply
 Brand value
Pricing practises

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Pricing practises

  • 1.
  • 2.  COST-PLUS PRICING  MULTIPLE PRODUCT PRICING  TRANSFER PRICING  PEAK-LOAD PRICING SYSTEM
  • 3. "Customers want high quality at low prices and they want it now." – Bill Gates
  • 4.  1) PERFECT COMPETITION  2)IMPERFECT COMPETITION › MONOPOLISTIC COMPETITION › OLIGOPOLY › MONOPOLY
  • 5.
  • 6.
  • 7. ITC has diversified presence in:  Cigarettes  Hotels  Packaging  Personal care  Agri-based business  Branded apparel  Safety matches  Greeting cards
  • 8.  Main objective was to compete effectively with players who are already there. Hence, it launched direct frontal attack by introducing similar priced product.  ITC already enjoyed advantages over competitors through e-choupal initiative. This also facilitate timely supply of raw material.  ITC’s printing and packaging business also leads to high quality, cost effective and innovative products.
  • 9. The company dose not raise the price of its most selling brand(Gold Flake (S)) so that it can get max market share and earn money on its premium brands(Insignia).  The cost structure of the company plays a major role in determining the prices the various stages and the companies cost structure is as follows:- Fixed Cost(Plant operations) .69% &Variable (manufacturing , packaging etc. 99.31%)  Further on the company cannot afford to raise its mark-up due to the presence of intense competition.
  • 10.  Cost of raw material is same for every industry  Logistics  Labor  Larger the Quantity lower the production cost  Target market  Brand value  Government policy
  • 11.  Form of market  Whole sales  supply chain  compititors
  • 12.  Study of market  Cost calculation  Production expenses  Channel of supply  Brand value