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प्रश्न
What pricing strategy will be used to launch shampoo?
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उत्तर
Penetrating pricing
Shampoo is a widely used Fast Moving Consumer Good (FMCG). Penetrating pricing is acceptable for this product.
This technique involves setting a low initial price so that the brand quickly gains popularity and market share. Shampoo demand is very elastic, which means that lowering the price can significantly increase demand. There is also strong competition in the shampoo business, so a cheap starting price helps to limit the entry of new companies and obtain widespread adoption. For example, shampoo sachets are sold at extremely low prices in order to target the rural and middle-class markets.
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संबंधित प्रश्न
It is also known as ‘going rate pricing’ or competition based pricing.
The strategy of introducing new product in existing market is classified as ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
______ determines the sales volume and the profit margins.
“Parity pricing is not relevant under the present marketing conditions.” Justify either for or against by giving two reasons.
What is parity pricing?
Mention the advantages of cost plus pricing.
"Competition based pricing is ideal for non-branded products." Comment.
Give one difference between skimming pricing and penetrating pricing.
| Evergreen Cosmetics is planning to launch a new range of ‘anti-wrinkle creams’ in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market. |
- Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
- Describe any two qualities that a salesman selling this product should possess.
- Explain any two tools of sales promotion that can be used here.
