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Pricingstrategy 090420093616 Phpapp01

The document discusses pricing strategies for rural markets in India. It outlines factors that influence pricing like costs, customers, and competitors. It then describes various pricing strategies companies have used successfully in rural areas, including keeping prices very low (Rs. 4-5 range), avoiding sophisticated packaging, highlighting value over price, product bundling, refill options, discounts, and discriminatory pricing. Specific company examples provided include HUL's sachet strategy, Videocon's low-cost radio launch, and Asian Paints' small paint packs. The overall strategies aim to make products affordable and accessible to rural populations.

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Amit Mahto
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33 views11 pages

Pricingstrategy 090420093616 Phpapp01

The document discusses pricing strategies for rural markets in India. It outlines factors that influence pricing like costs, customers, and competitors. It then describes various pricing strategies companies have used successfully in rural areas, including keeping prices very low (Rs. 4-5 range), avoiding sophisticated packaging, highlighting value over price, product bundling, refill options, discounts, and discriminatory pricing. Specific company examples provided include HUL's sachet strategy, Videocon's low-cost radio launch, and Asian Paints' small paint packs. The overall strategies aim to make products affordable and accessible to rural populations.

Uploaded by

Amit Mahto
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Pricing Strategy

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Yactors influencing the price

h Internal Yactors
h Cost
h Pricing Objective
h External Yactors
h Customers
h Suppliers
h Competitors
Pricing Strategies

h Low Price Points : HUL sells the maximum number


of its products in sachet packs in rural areas
Peopsodent toothpaste is available for Rs.4
h Avoid sophisticated packaging;
h Highlight Value , not price
h Product Sharing price
Pricing Strategy

› 
Pricing the product at a lower price really attracts rural population for
trying the products.
h Yor many Y CG companies , Rs.5 is an appropriate price point to draw
new customers and increase consumption.
h Tata tea introduced Samunder salt in the economy category.
h Bharat Petroleum has introduced five kg gas cylinders to reduce initial
deposits and refill cost for rural consumers. The deposits for 5 kg
cylinder is Rs. 350.
Pricing Strategy (Contd..)
 
 

The production cost can be lowered by using less


sophistications and rather concentrating on the utility
of the product.
h aharaja Appliances Ltd.. Sells washing machine
without a drier for rural market at Rs. 2990/-

LG electronics launched tv sets at a affordable price


for rural customers like ± sampoorna at Rs.3000
cineplus at Rs.4900
reduced price by replacing 4 speakers by 2.
Pricing Strategy (Contd..)

? ?
 
By giving refill packaging marketers can add
value pricing of the product.
h Bournivita available in refill pack
h Detergent made available in reusable packaging.
Pricing Strategy

h Discounts
h Cash discount
h Quantity Discount
h Off season discount
h Promotional Schemes.
Pricing Strategy
j  
This technique helps the organization not only
lower cost but enhance the value
Nirma detergent powder over a period of ten years
has become the largest selling brand in rural India.
The success of Nirma is due to affordable price,
medium quality, availability at village shops and
use of rural specific mass media.
Pricing for Quality Conscious

h Pricing ethods
When price quality relationship are easy to associate marketer can employ the following
methods of pricing
h Discriminatory pricing
h Perceived value pricing

h Discriminatory pricing is employed to charge different customers grouped differently


projecting in quality offer.

h Companies add features to their products with a view to enhancing their customers
perceived value. Yor each factures which enhance convince durability reliability
attractiveness.
Videocon : Pricing Strategy

Videocon was one of the first companies to enter the


rural market with the home appliances. It attacks
market leader Phillips by launching a radio set for
Rs.180(the Phillips radio set cost Rs.250) and grabbed
a major chunk of the market.
Operation Bharat: Bundle-Price Strategy

h HUL Under ³operation Bharat´, they introduced sachets of clinic plus,


ponds , close up and fairness cream.
h To make sachet buying a habit for these consumers.
h later launched 18 gm life-buoy soap, priced at Rs. 2.

h Asian paints was the first company to come up with 50 ml and 100 ml
paints pack for rural market

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