“WHY DO RETAILERS CHARGE HIGHER THAN MRP”

RESEARCH METHODOLOGY

People involved Retailers

Sampling frame Mumbai
Sample Size 30
Sampling technique Stratified
ANALYSIS
Percentage of Retailers Charging Higher than
MRP
17%

5%
Some Products

All Products

None

78%
 Products Coming under this Category
100% 95%
90%

80%

70%

60%

50%
41%
40%

30%

20%

10% 6%
0%
0%
Soft Drinks Dairy Products Snacks Personal Care
Percentage of People who Object
17%

Yes

No

83%
Segregation of objecting customer as per Retailers

7%
28%

7%

0%-20%

21%-40%

41%-60%

61%-80%
43% 15%
81%-100%
Percentage of Reaction of retailers to Customer Negotiations
18%

Let Go
Sell on
MRP

82%
 Weightage for Reasons for Charging Higher than MRP
100%
92%
90%

80%

70%
64%
60%

50%
Weightage for Reasons for
40% Charging Higher than MRP
30%

20%
14%
10%

0%
Higher Overheads Higher Profits Lower Margins
Percentage of change in Consumer Preference for the Product
12%

Yes

No

88%
Percentage of Retailers in conversation with Company Officials

41%

Yes
59% No
FINDINGS
 Soft Drinks being Major Product

 Load Shedding Problem

 Monopoly Provides Higher Profits

 Unhappy with Heavy Promotional Expenditure

 Discrimination of Prices
CONCLUSION