Pricing Strategies of Itc

set Strategy ITC Foods Business Division (Staples) The FMCG & RETAIL Pricing Strategy UNDERSTANDING THE PROCESS FMCG Pricing Strategy is now a critical element of the counseling mix. Old school management responsibilities of Sales owning the trade spend budget and customer negotiations with merchandise owning the Recommend Retail Price do not effect in todays information driven age. Retail gross revenue volume is now 80% controlled by 2-3 chains with a scattering of independent operators making up the rest of the volume. This assimilation means the negotiations favour the retailer with the supplier handing over gross profit margin via the mechanism of trading terms and via the demand for increased promotional frequencies and deep price discounts on key branded lines. The scrap for Trade Marketing, Category Management as well as Sales and Marketing is to develop a price system of rules that can be customized to reflect your business needs scarcely utilize the power of a structured and proven pricing management system. The Basic Concept used by ITC is: outlay IS SOMETHING WHICH CUSTOMER IS READY TO PAY FOR YOUR PRODUCT Hence it is a majority function of -Consumers purchasing Power.

-Market condition created by the Competitor in terms of the Price. PRICING STRATEGY Pricing is an eventful strategic issue because it is related to product positioning. Furthermore, pricing affects another(prenominal) marketing mix elements such as product features, behave decisions, and promotion. While there is no single recipe to go out pricing, the following is a general sequence of steps that ar followed for developing the pricing of product: 1.Develop marketing system - perform marketing analysis, segmentation, targeting, and positioning. orders Adopted: Box Plot Method: i.e. Market Segmentation 2.Make marketing mix decisions - desexualise the product, distribution, and promotional tactics. 3.Estimate the demand curve - understand how... If you necessity to get a full essay, order it on our website: Ordercustompaper.com

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