Академический Документы
Профессиональный Документы
Культура Документы
Affordability is, in determined by two factors1.Income of consumer 2.Price of the Product & Services
Pricing Strategies
Low Price Points:HLL sells the maximum number of its products in sachet packs in rural areas.Peopsodent toothpaste is available for Rs.4 Avoid sophisticated packaging; Highlight Value , not price Product Sharing price
Pricing Strategy
Low Price
Pricing the product at a lower price really attracts rural population for trying the products. For many FMCG companies , Rs.5 is an appropriate price point to draw new customers and increase consumption. Tata tea introduced Samunder salt in the economy category. 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
Credit Facilities The credit period varies between 7-30 days in the case of fast moving consumer goods, 60-90 days credit for fertilizers , seeds , etc.
Pricing Strategy
Discounts
Cash discount Quantity Discount Off season discount Promotional Schemes.
Pricing Strategy
Value Engineering
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.
Consumer Categories
Category
Quality conscious
Annual Income
Over Rs. 1,50,001
Life style
Very Rich
Value Conscious
Rs.45,001-1,50,000
Consuming class
Price Conscious
Rs.22,001- Rs.45000
Climbers
Product
Price
Promotion
Place
Premium Product
High
High
Mass Products
Medium
High
Price conscious
Spurious products
Low
No
Videcon :Pricing Strategy Videcon was one of the first companies to enter the rural market with a plethora of products in 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. Low Priced shampoo Cavinkare realized that for a family of five members at rs.2 per sachet and minimum of four hair washes per person per month would mean a Rs. 40 spend fro a shampoo . Many rural families cannot be afford expense.