Strategies of Pantaloon retail (India) limited

Time pricing Time-based pricing is a pricing strategy where the provider of a service or supplier of a commodity, may vary the price depending on the time-of-day when the service is provided or the commodity is delivered. The rational background of time-based pricing is expected or observed change of the supply and demand balance during time. Timebased pricing includes fixed time-of use rates for electricity and public transport, dynamic pricing reflecting current supply-demand situation or differentiated offers for delivery of a commodity depending on the date of delivery (futures contract). Most often time-based pricing refers to a specific practice of a supplier. The innovative way of attract the customer is Timely pricing it is known that during holidays rate of customer is more. Reduction of profit margin with lot of advertisement will invite new customers. The company has learnt it from strategy made on public holiday 26-Feb. When the turnover of the day reached 30 cores where average is 5 cores. With such experience crowded management is essential so to divert potential customers Wednesday bazaar where it will offer less profit margin sales.

Value pricing It is a pricing strategy which sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices. Where is it successfully used, it will improve profitability due to the higher prices without impacting greatly on sales volumes. The approach is most successful when products are sold based on emotions (fashion), in niche markets, in shortages (e.g. drinks at open air festival at a hot summer day) or for indispensable add-ons (e.g. printer cartridges, headsets for cell phones). Goods that are very intensely traded (e.g. oil and other commodities) or that are sold to highly sophisticated customers in large markets (e.g. automotive industry) usually are sold using cost-plus pricing.

This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales. The product value will be associated with external factors.

Promotional pricing Is a strategy used in sales and marketing that involves reducing the prices of products to attract customers. The prices might be lower than the cost of producing a given product. It may include approaches like buy one get one free among other approaches. This pricing is used to promote a product is a very common application. The application of this done by BOGO (Buy one Get One), BTGO (Buy Two Get One Free) etc.

Bundling Bundling is marketing tool sell two or more complementary product as a package with attractive price. The price is will lesser then individual selling price. Example: A Person needs one soap for a period of time But bundling with attractive price with more than 3 soaps can attract them. Physiological discounting In India this approach is called as Bata rating system. Organization utilizes this approach when product has emotional value rather than rational value. Example a product is priced for 99 instead of 100.When board shows price reduction from 100 to 99, Consumer looks at 3 digits to 2 digits rather than exact value

Pricing strategy of shoppers stop Pricing is a major element of marketing any product, and it is vitally important to set the right price. A price that is too high or too low for the target market can seriously affect sales. Elements such as target market, profit margin needed, growth strategy for the company and market share all play a role in what pricing strategy is used. Premium pricing can used for several purposes. Shoppers Stop follows Premium Pricing Strategy that includes selling of High Quality Products at a High Price. Shoppers stop caters to different segments of the consumers. Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction. A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to skim the cream off the top of the market. It is used to maximize profit in areas where customers are happy to pay more, where there are no substitutes for the product, where there are barriers to entering the market or when the seller cannot save on costs by producing at a high volume. Luxury has a psychological association with premium pricing. The implication for marketing is that consumers are willing to pay more for certain goods and not for others. To the marketer, it means creating a brand equity or value for which the consumer is willing to pay extra. Marketers view luxury as the main factor differentiating a brand in a product category.

Price range Mens apparel The range of mens clothing starts from Rs 500 being the lowest to nearly 6ooo highest. Price Womens apparel 10000 The range of womens clothing starts from Rs400 to Rs

Mens accessories like sunglasses, belts, watches, shoes etc ranges from Rs 1000 to Rs 20000. Womens accessories like sunglasses, watches, belts, sandals, earrings etc has the price range of Rs 2000 to Rs 40000. Price In the kids section prices of toys and other accessories ranges from Rs 100 to Rs 5000 In the cosmetics section there are products like deodorants, skincare cosmetic, make-up stuff. Their price ranges from Rs 200 to Rs 2000.

Discount Pricing Strategy The company may have no other way to differentiate its products, so it strives to be value leaders. Consumers usually know which products are priced for value, as they are often distributed in discount chains. The downside to using a discount pricing strategy is that the profit margin is extremely low for each product. Small companies that use discount pricing must sell in mass quantities to bolster profits. The major objective for using a discount pricing strategy is to gain market share at the expense of key competitors. Market share is the percentage of dollar and unit sales that a small company possesses in an industry.

Temporary Discount Pricing Shopper stops use a more temporary type of discount pricing, such as quantity discounts, special sales, cash-paid incentives and even seasonal discounts. A quantity discount enables a customer to save money by purchasing multiple items. For example, buy two, get one free is a quantity discount. A quantity discount also allows customers to get huge discounts when they purchase in large quantities,Shoppers