Pricing Strategies

Pricing Strategies

Pricing refers to the process of setting a price for a product or service and more than any other element of your marketing mix, will have the biggest impact on the amount of profit you make. Developing an effective pricing strategy is a critical element; the other elements create costs and sales volume.

                               

Kissan jam Varieties :
* Pine apple
* Mango
* Apple
* Strawberry
* Mixed fruits

Pricing :
100 gm Bottle - Rs. 22
200 gm Bottle - Rs. 47
500 gm Bottle - Rs. 102

Step 1. Selecting the pricing objectives: For a kissan brand setting of a Price for its product is a very important decision It needs to align the company’s objectives. Within setting a price objective a company also needs to look into the following factors – survival, maximum current profit, maximum market share, maximum market skimming and product – quality leadership. Kissan jam have to select the pricing objective for the customers and also for the competitors.

Step 2: Determining a demand:  Every company must known and they must determine the demand from customers for the product. Kissan should known when there is a high demand in the markret on that basis they must manufacture the stock It needs to fix prices of the products taking into consideration the demand for a particular brand of jams.

Step 3: Estimating Costs: Once kissan jam determines the demand for the jam; it also has to estimate the costs and the levels of productions. It has to take into account the variable costs, the total costs, the fixed costs which go into the production of the jam. These factors go into the fixing a price for the products.

Step 4: Analysing Competitor’s Costs, Prices and Offers:  Prices are also determined keeping in mind the competitor’s costs. Prices are also determined by knowing what the competitor is offering for the same product. FMCG companies regularly come out with discount & promotional offers especially during festive times to generate more revenue.

Step 5: Selecting a Price Method: Appropriate Pricing Methods are determined to gauge come to a method for effective determination of a price.

Step 6: Selecting the Final Price: After considering all the determinants of coming to a pricing conclusion, the final price for the product is determined. Here, the prices are adapted.

Kissan jam also finds itself in a peculiar position once it has determined it’s pricing strategies. There arises a demand to reduce prices of the products. A price decrease might be brought about by excess plant capacity, declining market share, a desire to dominate the market through lower costs, or economic recession.

For a market leader like kissan jam, if attacked by a lower – priced competitors can seek to better differentiate itself, introduce its own low cost competitor, or transform itself most completely.