Nestlé Naturnes

Price Policy Analysis

Pricing Objectives and
Pricing Policy
pricing objective range of range of
and pricing competitors
pricing policy in the retail store prices
Internal Pricing External
Factors Factors
Decision
 Factors having
an impact on pricing
External factors •• Consumer
Consumerperception
perceptionof
of
price/value
price/value
•• Demand
Demandelasticity
elasticity

•• Industry
Industrystructure
structure
External
External •• Competitors’
Competitors’policies
policies
factors
factors ••Retailers’
Retailers’policies
policies
••Substitutes
Substitutes

•• Other
Otherenvironmental
environmentalfactors
factors

Marketing Mix Strategy - III. Price Policy Analysis 4

 pricing objectives and
pricing policy
Finding the perceived value:

Value = Benefits - Costs

Marketing Mix Strategy - III. Price Policy Analysis 5

 pricing objectives and
pricing policy
Benefits
Prestigious image
Quality: biological products
 no use of additives, conservatives,
thickener
 no additional sugar, salt

Marketing Mix Strategy - III. Price Policy Analysis 6

 pricing objectives and
pricing policy
Benefits
 Innovation: new technological procedure (every
ingredient is steamed cooked separately)
Innovative packaging
 Simple/Various recipes
Delicious

Marketing Mix Strategy - III. Price Policy Analysis 7

 pricing objectives and
pricing policy
Buyers perseption of price: image
• nestlé biggest nutrition company worldwide
• 100% biological products
• good for the environment (25% less CO2
emission than with other products)

Marketing Mix Strategy - III. Price Policy Analysis 8

 pricing objectives and
pricing policy
Buyers perseption of price: personal
benefit
• saving time and energy
-Easier and faster to
prepare a meal:

-The jars are mircrowave

able

-they are also stackable

- the jar is reclosable

Marketing Mix Strategy - III. Price Policy Analysis 9

 pricing objectives and
pricing policy
Buyers perception of price: benefit of service
• augmented product:
– consumer service hotline (number on the
package)
– special web side www.naturnes.com
 with chat rooms, information

Marketing Mix Strategy - III. Price Policy Analysis 10

 pricing objectives and
pricing policy
Buyers perception of price: Product‘s benefit
• new steamed cooking technology
 preserves vitamins, minerals of the food
• no additional chemical substances
• colors and textures of the food remain natural
• 100% biological ingredient

Marketing Mix Strategy - III. Price Policy Analysis 11

Choice

Marketing Mix Strategy - III. Price Policy Analysis 12

 pricing objectives and
pricing policy
Costs

 Time cost
 Available everywhere: High penetration
Monetary cost
Middle range price

Marketing Mix Strategy - III. Price Policy Analysis 13

 Factors having
an impact on pricing
Industry structure

1.035 billion €
turnover 2007 in the
whole industry

Marketing Mix Strategy - III. Price Policy Analysis 14

 Factors having
Competitors policies
an impact on pricing

Retailer brands

-Low-Middle
-Market leader ranged price
- is the cheapest
- but no new inventions
-High range of products
lately
-Low quality
-Cheap

Marketing Mix Strategy - III. Price Policy Analysis 15

 Factors having
an impact on pricing
Internal factors
 Marketing Objective:
Market Share Leadership
 Good quality product to attack Blédina
 Prices are not as high as organic products
usually are


Marketing Mix Strategy - III. Price Policy Analysis 16

 Factors having
an impact on pricing
Product Distribution Communication
-Magazines for parents/
-40 different dishes - supermarket
-medical magazines
- for children from (carrefour, - posters, Internet
4 month to 1 year intermarché) -Sales promotion, POP

Price
Middle price range

Marketing Mix Strategy - III. Price Policy Analysis 17

range of pricing in the
retail store
pricing objective range of range of
and pricing competitors
pricingpolicy in the retail store prices
 range of pricing in the
retail store

Carrefour: 1,45 €
Marché plus: 1,45 €
Intermarché: 1,30 €
Paradis des prix : 1,44 €

Marketing Mix Strategy - III. Price Policy Analysis 19

range of competitors
prices
pricing objective range of range of
and pricing competitors
pricingpolicy in the retail store prices
 range of competitors prices

Marketing Mix Strategy - III. Price Policy Analysis 21

Demand Elasticity
 Factors having
an impact on pricing

• Nearly inelastic for the whole industry

• Elastic for Naturnes

Marketing Mix Strategy - III. Price Policy Analysis 23

 Factors having
an impact on pricing
Estimation of price elasticity from target
market’s buying intentions (in €)

Marketing Mix Strategy - III. Price Policy Analysis 24

 Factors having
an impact on pricing
Product is common;
• Quality is comparable;
• Substitute is abundant;
• Price is high;
•

Pri c e
s i
sen
t iv e

Marketing Mix Strategy - III. Price Policy Analysis 25

Any questions?