Pricing Strategy ITC Foods Business Division (Staples) The FMCG & RETAIL Pricing Strategy UNDERSTANDING THE PROCESS FMCG Pricing Strategy is now a critical element of the management mix. Old school management responsibilities of Sales owning the trade spend budget and customer negotiations with marketing owning the Recommend Retail Price do not work in today ’s information driven age. Retail sales volume is now 80% controlled by 2-3 chains with a scattering
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Part IV. The global marketing mix 2. Global pricing strategy 1 Cheap and cheaper… 2 Expensive and more expensive… 3 1. Basic pricing concepts Introduction Price: the amount charged to customers/consumers in exchange for goods or services Market price: the price that prevails in the market for a particular good at a specific time 3 key elements of market price: supply‚ demand and time Eg: hotel prices – peak season during summer – higher prices driven by the demand (more
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Allowances Loss-Leader Pricing Special-Event Pricing Cash Rebates Low-Interest Financing Longer Payment Terms Warranties & Service Contracts Psychological Discounting Customer-Segment Pricing Product-Form Pricing Image Pricing Channel Pricing Location Pricing Time Pricing Price Discrimination Differentiated Pricing Promotional Pricing Geographical Pricing (Cash‚ Countertrade‚ Barter) Changing Pricing Environment How Companies Price Understanding Pricing Consumer Psychology and Pricing Reference Prices
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Indomie Pricing Strategy One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore‚ pricing affects other marketing mix elements such as product features‚ channel decisions and promotion. In this case‚ Indomie is brand of noodle which was produced by PT Indofood Sukses Makmur‚ Tbk. As a leader of brand noodle‚ Indomie has pricing strategies‚ it product-line pricing. They set different price in
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Nature Beauty Price strategy will be the penetration theory for my product. Penetration is pricing low to stimulate the sales‚ encourage trail‚ and trigger by word of mouth. Nature Beauty’s mineral powder foundation will not be a new product that no company has similar to. We will need to start by gaining the trust of the consumers by word of mouth and different marketing strategies to the targeted customers. This way once the product has some buzz and customers appreciate the products value‚ we
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INTRODUCTION AVIS Avis is the Australian largest car rental company‚ with 33% market share across the nation’s airports‚ employing 1000 staffs in 240 locations (Super brands 2009). The company entered Australian market in 1955‚ initially only had a market share of just 10- 11% of the car rental market. In 1962 Robert Townsend joined as President of Avis and introduced a bold advertising campaign focusing on the company’s customer service: “We’re No.2. We try harder!”. The message‚ together with its
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7: Pricing Contents A. Understanding Pricing 4 1. Internal and External Considerations Affecting Price Decisions 5 1.1. Internal factors 5 1.2. External Factors 9 2. Setting The Price 10 B. Introduction to Apple 13 1. Product 14 2. Promotion 15 3. Place 16 4. Price 17 C. IPHONE 19 1. Introduction to iPhone 19 1.1 Main Features 19 1.2 Market share 20 2. Pricing Strategy of Apple’s IPhone 21 2.1 High Reference Pricing 21 2.2 Penetration pricing 22
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1. Introduction Pricing strategies usually change as the product passes through its life cycle‚ because there is constrains on the company’s freedom to price a product at different stage. The purpose of this report is to determine and elaborate the elements in pricing strategies of Dell’s notebook. 2. Key Objectives Price is the amount of money changed for a product or service‚ or the sum of the values consumers exchange for the benefits of having or using the product or service (Kotler et al
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The target market of Firefly has always been travellers both for business and also leisure. Travellers for both business and also leisure are potential customers of Firefly as it is a low cost airline providing great services. 2.0 Marketing Mix Strategies Marketing mix is a mixture of numerous ideas followed by a marketing representative in promoting a particular product or brand. The elements of marketing mix are often called the four P’s of marketing which are product‚ price‚ place and promotion
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Chapter 11 Pricing Strategies Questions for Discussion 1. Which of the different product mix pricing strategies discussed in the text applies best to Payless’s new strategy? : The strategy for setting a product’s price changes when the product is the part of a product mix. Firms are look for a prices that maximizes the profits on the total product mix. There are five product mix pricing strategies for the firms. Product line pricing‚ optional-product pricing‚ captive-product pricing‚ by-product
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