ERP In Manufacturing 2012 - A Study done by Aberdeen
Pricing Siddhant Gupta
1. 1
Pricing
Indian Institute of 12/18/2012
Management Raipur
Adarsh Chowdhury (12PGP058)
Anurag Rai (12PGP064)
Nikhil Garge (12PGP070)
Siddhant Gupta (12PGP096)
Shubham Singh (12FPM004)
2. 2
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What is a PRICE ?
Price is defined as the monetary value of a
product.
It can also be defined as everything that a
customer has to give up in order to acquire a
product or service.
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Role of Pricing Indian Institute of
Management Raipur
12/18/2012
Marketing
Strategy
Competitive
Weapon Demand
Regulator
Role of
Pricing
Input to
Revenue
Decision
Generator
Making
Positioning
of Product
4. 4
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Marketing Strategy
• Skimming Pricing
• Setting a high price for a new product to skim
maximum revenues layer by layer from the
segments willing to pay the high price.
• Appropriate for a distinctly new product, provides
the firm with an opportunity to profitably reach
market segment that are not sensitive to the high
initial price
5. 5
Apple has priced Mac Laptops, iPhone
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iPod all at a high premium
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Sony launched HDTV Bravia at a high
premium
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Penetration Pricing
• Setting a low price for a new product in order to
attract a large number of buyers and a large
market share.
• Appropriate when there is high price elasticity of
demand, strong threat of imminent competition,
and opportunity for a substantial reduction in
production costs as volume expands
8. 8
Karbon, Micromax, Intex, iball etc. are
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certain examples where companies resort
to penetrative pricing
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Maybelline’s use of Penetrative Pricing
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Role of Pricing Indian Institute of
Management Raipur
12/18/2012
Marketing
Strategy
Competitive Demand
tool Regulator
Role of
Pricing
Input to
Revenue
Decision
Generator
Making
Positioning
of Product
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Demand Regulator
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PVR & Cinemax changing prices to
control demand
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Role of Pricing Indian Institute of
Management Raipur
12/18/2012
Marketing
Strategy
Competitive Demand
Tool Regulator
Role of
Pricing
Input to
Revenue
Decision
Generator
Making
Positioning
of Product
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Revenue Generator
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Royal Stag & IKEA’s pricing act as
revenue generator
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Role of Pricing Indian Institute of
Management Raipur
12/18/2012
Marketing
Strategy
Competitive Demand
Tool Regulator
Role of
Pricing
Input to
Revenue
Decision
Generator
Making
Positioning
of Product
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Pricing as a Positioning tool
• Firms use pricing as a tool to position their
products & services in the different market
segments.
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Positioning of a Product
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Pricing as low end positioning
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Competitive Tool
Marketing
Strategy
Competitive Demand
Tool Regulator
Role of
Pricing
Input to
Revenue
Decision
Generator
Making
Positioning
of Product
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Internal Factors Management Raipur
Marketing Common objectives of
Objectives
the company are
Cost
Marketing Mix
1. Survival in the
Strategy market
2. Profit maximization
External Factors
3. Market share
The Market leadership
Demand
4. Product quality
Competition
leadership.
Other External
Factors
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Internal Factors Management Raipur
Marketing
Survival in market
Objectives
Due to intense
Cost competition
Setting low price
Marketing Mix
Strategy
External Factors
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
Marketing Profit maximization
Objectives
Prefer financial results to
Cost
long run performance.
Marketing Mix
Strategy
External Factors
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
Marketing
Market Share Leadership
Objectives
Cost Conditions are
• Highly price sensitive market
• Low price affect potential buyers
Marketing Mix
Strategy
• Economics of scale
External Factors
The Market
Demand
Competition
Market Share 16.9% Market share 17.3%
Other External
Factors
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Internal Factors Management Raipur
Marketing Product Quality Leadership
Objectives
Cost The company set high prices and
provide high quality products in
Marketing Mix the market.
Strategy
External Factors
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
Marketing Cost
Objectives
Cost is related closely with price
Cost
because to select the price it will
include cost of distribution,
Marketing Mix
Strategy production and all the other costs
on product.
External Factors
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
Marketing
Objectives
Cost
Marketing Mix Rising prices of
Strategy petrol due
to rising costs of
External Factors imports
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
In India McDonalds classifies its
products into 2 categories
Marketing namely the branded
Objectives affordability (BA) and
branded core value products
Cost (BCV). The BCV products
mainly include the McVeggie
Marketing Mix
and McChicken burgers that
Strategy cost Rs 50-60 and the BA
products include McAloo
tikki and Chicken McGrill
External Factors
burgers which cost Rs20-3
This has been done to satisfy
The Market consumers which different price
Demand perceptions.
Competition
Other External
Factors
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Internal Factors Management Raipur
Marketing
To set the price the
Objectives marketers should take into
consideration the market
Cost
demand
Marketing Mix
Strategy
External Factors
The Market
Demand
Competition Hafte Ka Sabse Sasta Din”
Other External
Factors
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Internal Factors Management Raipur
Marketing
Objectives
Cost
Marketing Mix
Strategy
External Factors
The Market
Demand
Competition
Other External
Factors
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Internal Factors Management Raipur
Government policies.
Marketing
Objectives
Inflation/deflation and
Cost
interest rate affect selling
price because they affect cost
Marketing Mix of production and consumer
Strategy perceptions related product
price
External Factors
The Market
Demand
Competition
Other External
Factors
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Price Sensitivity
• The degree to which price affects consumer
purchasing behaviour
• Input to Marketers
• Popularly measured using ―Price Sensitivity
Meter‖ developed by P V Westerdorp
▫ Capture the extent to which a product has an
inherent value denoted by price
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Types of Price Sensitivity
• Reference Price Effect
• Difficult Comparison Effect
• Switching Costs Effect
• Price-Quality Effect
• Expenditure Effect
• End-Benefit Effect
• Shared-cost Effect
• Fairness Effect
• The Framing Effect
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Types of Pricing Sensitivity
• Reference Price Effect The higher the
product‘s price to perceived alternatives the
greater is the price sensitivity
• Buyer segment, occasions, and many other
factors impact sensitivity
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Types of Pricing Sensitivity
• Difficult Comparison Effect Sensitivity of
buyers with respect to price gets reduced if the
product price is difficult to compare with other
products or if the product is by a reputed
manufacturer
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• Switching Costs Effect Some products
involve switching costs while opting for
substitutes, buyers are in this case willing to
abide by manufacturers price instead of
switching
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Types of Pricing Sensitivity
• Price-Quality Effect Price
sensitivity of buyers is lower if high
price means high quality
• This effect is especially applicable
for following type of products:
image products, exclusive products,
and products with
minimal cues for quality.
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Types of Pricing Sensitivity
• Expenditure Effect As the ratio of the price of
the product to the buyer‘s income increases,
price sensitivity increases
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Types of Pricing Sensitivity
• End-Benefit Effect This effect is divided into
two sub-parts. It primarily deals with the overall
benefit of the product to user:
• A. Derived demand: Price sensitivity towards
spare parts & components is higher if the price
sensitivity towards end product is high
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Types of Pricing Sensitivity
• B. Price proportion cost: The price proportion
cost refers to the ratio of the cost of the
component to the price of the end product (e.g.,
think CPU and PCs). Buyers are less sensitive to
a components cost if it is a small part of the
overall product price
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Types of Pricing Sensitivity
• Shared-cost Effect Buyer will be less cost
sensitive if the price of the product is shared
amongst a group and an individual has to pay
less
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Types of Pricing Sensitivity
• Fairness Effect Price sensitivity of the buyer
increases if the product price is perceived to be
greater than the ―reasonable‖ price range for the
specific product
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Types of Pricing Sensitivity
• The Framing Effect Bundled products have
less price sensitivity and also if a product gets
priced as a loss to customer, it will lead to buyer
sensitivity as opposed to customer viewing a
product having ―opportunity‖ cost
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Penetration pricing
• Pricing technique of setting a relatively low
initial entry price, often lower than the eventual
market price, to attract new customers.
• The strategy works on the expectation that
customers will switch to the new brand because
of the lower price.
• Penetration pricing is most commonly
associated with a marketing objective of
increasing market share or sales volume, rather
than to make profit in the short term.
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TATA Sky
TATA Sky (A joint venture of TATA And Sky TV)
gained market leadership having the first mover
advantage. Soon they had mighty rivals like
DISH TV, AIRTEL DIGITAL TV etc. So have an
edge, they launched various price cuts giving
benefits like:
Budget packs
Regional packs
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Add on and A La Carte Packs
Twice an year subscription holiday
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• Ghadi Detergent: Ghadi Detergent (Rohit
Surfactants) did to Nirma (Karsan Bhai Patel
group) what Nirma had done to wheel.
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Ghadi did extensive soil testing and improved on
its ability to work in hard water in UP region.
They targeted the mass and soon became
famous. In turn Everyone else in the market had
to lower down prices to counter attack.
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Chik Shampoo: Chik Shampoo ( Cavin Kare)
used penetration pricing by changing the whole
game altogether by launching a completely new
SKU ( sachets) into the Indian market.
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Sachets were present before Chik came to
market but they were not present for all FMCG
product. With Chik‘s sachets. Cavin Kare group
targeted the lower level of the pyramid
successfully. In response to the attack, the global
giants like Unilever, Garnier, P&G etc. had to
come out with sachets which they were used to
give free of cost as samples in rest of the world.
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• Parle G: Parle used price penetration owing to
their strong distribution network. They had a
very wide reach and they used this advantage to
the fullest.
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They prices their products competitively and
when they faced pressure from their
competitors, a new SKU (Parle g in 2 rupees
packet) was launched and that prevented Tiger (
glucose biscuit brand from Britannia) from
getting hold of the market. Tiger was then
gradually rolled back from a major part of the
market.
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LG Television: LG entered the market when
the Indian market was dominated by local
players like Videocon, Onida and BPL. For
multinationals, only SONY had left a mark. LG
used the mass production method and thus
reduced the price more and more and in turn
attracted more and more buyers.
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China Mobile Phones in India
• Penetration Pricing
• Intention to maximize the market share
• Higher sales volume leads to lower unit costs &
higher long-run profit
• Problem: Consumers have a low quality perception.
• However, well suited to certain group of people.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Text Books
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(Special Indian/ South Asian Edition)
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Geographical Pricing
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• Pricing Strategy to gain market share by volume
& not by value.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Predatory Pricing
• Predatory pricing is the practice of selling a product
or service at a very low price, intending to drive
competitors out of the market, or create barriers to
entry for potential new competitors.
• The predatory merchant then has fewer competitors
or is even a de facto monopoly, and purportedly could
then raise prices above what the market would
otherwise bear
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Walmart: The third largest public corporation
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by revenue, this firm has literally conquered the
retail market because of its predatory pricing.
They sell in bulk and give huge discounts to
customers and thus could capture the market
well. They own huge stores and they are well
known to take feedback to understand market
sentiments from petty truck drivers and other
petty staff members.
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Big Bazar
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Best Price: Best Price is a Bharti & Walmart
joint venture in India. They have opened a chain
of stores on the lines of the large Walmart stores
across the globe. As FDI in retail had limitations,
they opened it for shopkeepers and institutional
sales, but the relaxed norms let them reach a
wider audience. They have priced everything
very low and they are using Wal-Mart's forte
here in India as well.
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Reliance’s Rs. 500/- Mobile
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Predatory Pricing – Reliance Mobile
• Both handsets along with connections were
available for Rs. 500/-.
• Intention to wipe out the competition.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Psychological Pricing
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Psychological Pricing
• Based on the theory that certain prices have
a psychological impact.
• ―According to a 1997 study published in
the Marketing Bulletin,
• 60% of prices ended in the digit 9.
• 30% ended in the digit 5.
• 7% ended in the digit 0.
• remaining seven digits combined accounted
for only slightly over 3% of prices.‖
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Psychological Pricing
MOTOYUVA - W156
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Psychological Pricing
• MOTOYUVA - W156 prices at Rs. 1,099/-
Samsung Guru- Rs. 2,999/-
• Psychological Pricing
• This is done to make the customer believe that
product is priced cheaply or some cases just
break the price barrier that customer has in his
mind.
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Psychological Pricing - Playstation
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Psychological Pricing - Playstation
• In 2006 Sony released the Playstation 3 (PS3). The price for
the 60gb model was an astronomical $699 and the 20gb
model was $499.
• Price was very high for a gaming console and the alternatives
(Xbox 360 and Nintendo Wii) were much cheaper.
• Consequently, the company issued price cuts when it
introduced two models, the 80gb and 40gb, and phasing out
the 60gb and 20gb.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Perceived Value Pricing
• PVP is an open line pricing technique where
respondents estimate the price of a new product
compared to those who are already in the market.
• This method can be used with concepts or real
products. The technique is used with face to face
interviews. It is a preferred approach if the client has
little idea about the price level of the new product.
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It can used in the following cases:Indian Institute of 12/18/2012
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• For new products you can identify price expectations
• Identify the willingness to pay
• Make rough assessments of price elasticity
• For line extensions you can
• Assess expected relativities within the product range
• For re-launches you can
• See if price perceptions in relation to competitors
change as new features or additional information is
added to product description
• For existing products you can
• Explore perceived differences in relative values
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Vertu: Vertu is an expensive mobile phone
brand owned by Nokia. The phones in the Vertu
series are not very high tech but still they come
at a huge price. The Vertu with very basic
features comes with precious stones and metals
and comes a t a starting price of approx Rs.
200000/-. This product works solely on
customer perception as this brand commands
commendable premium as far as brand value is
concerned.
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Sony LCD & LED TV’s: Sony earned huge
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revenues by using skimming pricing technique
for their LCD and LED display panels. They were
prices at INR 21 Lakhs almost a decade ago and
now they are priced at 43 Lakhs for a similarly
sized better featured model. Sony has a premium
brand reputation in consumer electronics model
and they encashed on it. When they started
facing the heat of the competition, they came up
with ‗Monolithic Design Bravia‘ and tried to
retain their market share.
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Designer Branded Clothes : The price of designer
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clothes runs into thousands on Euros and the brands
like D&G , Versace, Armani etc. are able to sell clothes
at such high prices because these clothes are perceived
as fashion accessories rather than basic clothes.
As the are held very high in public perception so they
come at a premium pricing. The denims for Armani,
for example start at whooping 15000 INR.
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Omega: Premium Swiss watches sell at a huge price
premium. Omega is one amongst them. It‘s a brand of
the swatch group company. These watches are often
made up of precious metals and stones. Also, Swatch
has the credit of having the thinnest chrono to its
name. But the biggest factor for the huge price tags
that these watches carry is the positive mass appeal
and perception.
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Rolls Royce: This is another Example of a brand that
works on perceived value pricing. Rolls Rocye sells its
cars only to the elitist class and is available for sale on
the sole discretion of the company. As this is found
only with the elites, this brand comes at a huge price.
The prices of Rolls Royce Phantom and Ghost run into
crores of INR and they do not have any real
competitor due to the perceived brand image which is
enjoyed by just them.
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Apple Products: The ―i‖ products also rank very
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high on perceived pricing strategy. This is evident
from the fact that Apple makes all the launches a huge
event and public flock in in large numbers to get the
products on priority basis. No doubt, that the products
are very sophisticated and technically sound, but
Apple has still carved out a market for itself which is
happy paying a huge price premium for their products.
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The perceived pricing strategy works here
because Apple priced its latest iphone at a 25%
price premium than the nearest competitor from
Samsung (Galaxy S3)
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IPhone
• The Iphone from Apple is offered in price
range of Rs. 31,000/- to Rs. 42,500/-.
• Comparable NSeries Nokia & Sony Mobile
Phones are offered in the price range of Rs.
28,000/--31,000/-.
• Pricing is done based on the customer‘s
perception about the company and its
product.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Value Pricing
• The setting of a product or service's price, based
on the benefits it provides to consumers. By
contrast, cost-plus pricing is based on the
amount of money it takes to produce the
product. Companies that offer unique or highly
valuable features or services are better
positioned to take advantage of value-based
pricing, than companies whose products are
services are relatively indistinguishable from
those of their competitors.
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Nike Studio Wrap – Premium Pricing
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Nike Studio Wrap – Premium Pricing
• A footwear product targeted at women who favor
studio workouts like yoga and pilates
• Priced at $110 a pair.
• Priced with a strategy to target up-market people
doing workouts like yoga and gain profit by
value.
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Dove – High price to indicate premium
quality
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Dove – High price to indicate premium
quality
• Company aims to be product quality leader in
the market.
• Priced higher than its competitors.
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Tata Aria – Premium pricing(failure )
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Tata Aria – Premium pricing(failure)
• Tata Aria was launched with an expensive price
tag of Rs 12 -15.5 Lakh
• Priced with an expectation to create a new
market and a new image for TATA Motors.
• It did not perform as expected
• Company is planning to launch a Mini-Aria with
a reduced price to take advantage of the mini-
SUV / MPV market.
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TAG Heuer
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TAG Heur – Premium pricing
Swiss watchmaker TAG Heuer raised average price of its
watches from $250 to $1000
&
Sales volume increased sevenfold!
Basis of Pricing:-
• Price affects perception of quality
• Price affects consumer perceptions of prestige
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Premium Pricing – Chevy Cruze
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Premium Pricing – Chevy Cruze
• The Cruze was launched at $16,995—well beyond what GM
has ever charged for a compact and more than the $15,655
Honda asks for its base Civic sedan!
• Getting customers to pay more is central to GM's ability to
become profitable over the long term.
• GM had reason to believe its higher-price strategy for the
Cruze will work based on its experience with the Chevy Malibu
sedan, whose 2007 redesign was well-received by critics and
the public.
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Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Competitive Pricing
(An Example of Pricing Failure)
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Competitive Pricing
(An Example of Pricing Failure)
• Back in 2007-08, Anheuser-Busch had lowered
the price of its brand ‗Budwieser‘ so as to match
the price level of its competitors.
• However, this aggressive pricing strategy was
short lived.
• Within a few months, the prices were increased
to cut down the losses.
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Management Raipur
Competitive Pricing
Surf Excel
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The price strategy of Surf Excel has always been
in accordance with it competitors
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Indian Institute of 12/18/2012
Management Raipur
Honda City – Competitive Pricing
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Management Raipur
• Back in July 2011, Honda had slashed the price
of its product City.
• It was done in response to the growing sales of
new rivals like the VW Vento and Hyundai‘s new
Verna.
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Management Raipur
Kodak - Competitive Pricing
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Management Raipur
Kodak
• In 1994, Kodak‘s market share of the US film
market was 70% but was declining
• Flagship product Kodak Gold sold at 17% over
Fuji
• Kodak launched ‗funtime‘ film at a price lower
than that of Fuji
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Management Raipur
Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Product Form Pricing
• One of the variants of price discrimination
where the seller charges two different prices for
different versions of the product not in
proportion to their respective costs. This is quite
a common practice where a company adds new
feature and increases the price more than the
cost difference it incurred in adding new feature.
Here all the features bit one is kept constant and
that feature becomes the price determining
factor.
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Indian Institute of 12/18/2012
Management Raipur
Maruti WagonR and Maruti Zen Estillo:
Both these vehicles are powered by the same
K10 engine from Suzuki and are basically of the
same form factor (hatchbacks). Also the model
to model specification is the same (LX,Lxi,Vxi).
Only the external shape is different and so the
price is different. The model to model variation
in features is also the same. Even the gear shift
mechanism and other mechanical and electrical
equipments are the same.
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Management Raipur
Nokia Cell phones
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Management Raipur
Nokia phones-Product Form Pricing
• Different versions of the same product are priced
differently.
• Nokia-5000 is priced at Rs. 4,300/- Whereas,
Nokia-7210C-Supernova is priced at Rs. 4,800/-
offers almost the same features.
The reason for difference in pricing is to demand
premium for the sleek structure of Nokia-7210C.
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Indian Institute of 12/18/2012
Management Raipur
Penetration
Pricing
Promotional Geographical
Pricing Pricing
Product Predatory
Form Pricing Pricing
PRICING
STRATEGY
Competitive Psychological
Pricing Pricing
Premium Perceived
Pricing Value Pricing
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Promotional Pricing Indian Institute of
Management Raipur
12/18/2012
• Promotional pricing is a sales and marketing
technique. It involves reducing the price of a
product or service to attract customers. This
technique can be effectively used across
numerous industries including food services,
cosmetics, and household cleaning supplies.
• Promotional pricing often involves reducing
prices to unsustainably low levels. In some
cases, products and services may be sold at or
below cost. A buy one get one free scheme may
even be used. When this is done, interest in
goods can be greatly increased, meaning sales
are also likely to increase dramatically.
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Types of Promotional Pricing
1. Special Event Pricing: One of the
Promotional pricing techniques in which, the
marketers establish special prices in certain
seasons to draw more customers and sales.
Example: Promotional Pricing for Diwali
by Honda Siel Cars India: Honda had
slashed the prices of its entire product range by
giving loyalty discounts, free insurance etc.
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Management Raipur
SAMSUNG Omnia
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Management Raipur
Promotional Pricing
• In Diwali season of 2009 Samsung offered discounts
on Samsung Omnia mobile phone. Their market
price at that time was Rs. 33,990/- whereas their
discounted price for Diwali was Rs. Rs. 31,990/-
• Promtional Pricing
• In this case special prices are offered during special
occasions like festivals to increase the sales.
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2. Low Interest Financing: Companies may
decide to provide low interest rates for
financing their products.
Example: This Diwali Season Hero MotoCorp
(that is trying to set its foot firm after its
separation from its Japanese counterpart,
Honda) had provided discounted interest rate
of 6.99% for its entire range of two wheelers.
They were trying their level best using these
tactics as profits were under pressure from high
production costs and slow growing economy
meant sluggish sales figures.
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Management Raipur
• In 2009, Nokia piloted a scheme in two Indian
states where it sold handsets on a weekly
installment of 100 rupees ($2) over 25 weeks
period.
• Low-Interest financing
• To reduce the burden of initial cost to the
customer.
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Food Industry Pricing – Multi
Price Point Game
Indian Institute of 12/18/2012
Management Raipur
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Management Raipur
Food Industry Pricing – Mass
Consumption Products
• Low priced, plain vanilla products
• Available at price points as low as 2 INR
• Price was not changed
• Net weight of package was reduced to account
for increase in raw material prices
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Food Industry Pricing – Mass
Consumption Products
• Britannia Tiger biscuits
• Britannia’s Tiger is available in packs priced at
Rs.2, 4 and 10
• Tiger Banana biscuits (new product) are also
available in pouches of Rs.2 and 4
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Food Industry Pricing
• Net weight of package was reduced to account
for increase in raw material prices
• Parle G Glucose Biscuits
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Food Industry Pricing – Refined
Products
• Marie biscuits – as the name suggests thin,
crispy biscuits
• Positioned as a product to be consumed by
family together
• Britannia Marie Biscuit – minimum price is Rs.10
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Management Raipur
Food Industry Pricing – Refined
Products
• Salty biscuits are also part of this strategy
• Refined, mid-high income product
• Parle Nimkin positioned as an accompaniment
for tea
• Minimum price starts at Rs.5
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Food Industry Pricing – Light &
Digestive Biscuits
• Sunfeast Marie Light Original
▫ Priced at Rs.20 per 250 gm
• Sunfeast Marie Light Orange
▫ Priced at Rs.10 per 110 gm
• Sunfeast Marie Light Oats
▫ Priced at Rs.25 per 250 gm
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Management Raipur
Food Industry Pricing – Cream Biscuit
• Biscuits available at different price points
• Parle Kreams
• Packs priced at Rs.2 , Rs. 5 and Rs. 10
• Britannia Treat Fruit Creams
• Rs. 5/- smuggle-in-your-pocket pack, a Rs. 12
hide-under-the-pillow pack or a Rs. 25/- share-
with-everyone Family pack
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Management Raipur
Food Industry Pricing – Cream Biscuit
• Kreams Gold – Image Pricing strategy
• Packs priced at Rs 5, Rs 10 and Rs 18
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Management Raipur
Food Industry Pricing – Cream Biscuit
• ITC Dark Fantasy pursuing premium, niche
segment or long tail
• ITC Dark Fantasy Chocofills priced at Rs.30 for
84 g pack
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Management Raipur
Food Industry Pricing – Penetration
Pricing
• ITC Glucose biscuit
• Priced competitively at Rs.2 and Rs.4 packs
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Management Raipur
Food Industry Pricing – Penetration
Pricing
• Cadbury Oreo - India was expecting Oreo to be
launched as a competitor to Pure Magic
(Britannia), Dark Fantasy (ITC) and Hide N‘
Seek Milano (Parle)
• Kraft priced it at Rs 5 for a pack of three
biscuits, Rs 10 for a pack of seven, and Rs 20 for
14
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Thank You !!!