Pricing Strategy

abhishreshthaa

Abhijeet S
One of the important constituent of rural marketing mix is pricing. In the rural market value-for-money brands give the fastest sales for the FMCG sector. FMCG majors are trying to increase sales through low unit perks and VFM products. In segments like bathing soaps, washing soaps, and detergents, toothpastes, etc. the consumers are increasingly opting for more VFM launcher. VFM brands like Nirma’s Soap, Britannia’s Tiger are doing better than the other premier brands from their own companies.



According to ORG many estimates, in the year 2001, Breeze recorded a growth of 12 % while Lux a premium brand recorded a negative growth of 12.3%. Britannia’s Tiger grew by 12.6% in 2001.



In a slowdown mass brands register better growth than premium brands. In the home appliances category, Videocon was one of the first companies to enter the rural markets in home appliances. Phillips who was the market leader for radio sets (cost Rs. 250) were attacked by Videocon by launching a radio set for Rs. 180. They grab a major chunk of the market, at present they are marketing ‘walky’ range of personal cassette players at low prices to rural customers. Only charging a lower price is not enough, they have to offer value-for-money.



Pricing strategy requires a holistic approach. Pricing is a part of the marketing strategy. It should be designed in such a way that it contributes to the objectives of the marketers and needs and wants of the customer groups.
 
One of the important constituent of rural marketing mix is pricing. In the rural market value-for-money brands give the fastest sales for the FMCG sector. FMCG majors are trying to increase sales through low unit perks and VFM products. In segments like bathing soaps, washing soaps, and detergents, toothpastes, etc. the consumers are increasingly opting for more VFM launcher. VFM brands like Nirma’s Soap, Britannia’s Tiger are doing better than the other premier brands from their own companies.



According to ORG many estimates, in the year 2001, Breeze recorded a growth of 12 % while Lux a premium brand recorded a negative growth of 12.3%. Britannia’s Tiger grew by 12.6% in 2001.



In a slowdown mass brands register better growth than premium brands. In the home appliances category, Videocon was one of the first companies to enter the rural markets in home appliances. Phillips who was the market leader for radio sets (cost Rs. 250) were attacked by Videocon by launching a radio set for Rs. 180. They grab a major chunk of the market, at present they are marketing ‘walky’ range of personal cassette players at low prices to rural customers. Only charging a lower price is not enough, they have to offer value-for-money.



Pricing strategy requires a holistic approach. Pricing is a part of the marketing strategy. It should be designed in such a way that it contributes to the objectives of the marketers and needs and wants of the customer groups.

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