CHAPTER-III

DATA ANALYSIS AND

FINDINGS
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ANALYSIS AND FINDINGS

A comparative study on the pricing strategies rendered by the various textile outlets –
Kalyan Silks, N’styles, Athira Silks, Novelty and Swapna are as follows:
Kalyan Sliks
 Luxury based and value based strategies are the main strategies that the
management uses to price there various unique and quality products ,which
allows to retain the customer base through prices like no other.
 These range of prices help in increasing the rapo between the customer and the
firm ,
 The customers here mainly focusses on brand image along with the quality of
the products that are offered to them.
 Kalyan tend to attract there customers through many major promotion method (
like television ,radio internet etc), that has helped them in maintaining there
customer base throughout all these years.
 The geographical location of the kalyan reatail outlets also play a role in the
pricing policy of the products offered by them, the retail outlets are placed in
such locations that are of convenience to the retailor as well as the customers. By
placing the shops in such areas the retailor incur very little cost in relation to
transportation of the goods from the manufacturing outlet to the retail outlet.

Pricing strategies:
Luxury pricing:
 In the luxury tier of the market, consumers' price sensitivity often is more closely
correlated with a brand's image rather than inherent product quality or market
value.
 Apparel products are closely tied with self-expression and social status in
consumers' minds, so consumers in this segment are often more concerned with
the social image of their apparel than its durability of the quality of materials.
This strategy focuses on marketing and brand positioning as a main driver of
price structure.

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Value based pricing:

 The value pricing strategy sits somewhere between the budget and luxury
segments.
 The key to value pricing is to strike a balance between cost and quality.
 Value shoppers are not willing to sacrifice quality for extremely low prices, but
they also are not willing to pay more than apparel is worth simply for a popular
brand logo. Consumers in this segment look for clothing and accessories that will
last several years or more, making the durability of materials a prime concern.
o Distribution Channel: The distribution channels that are chosen by them are
such that in help in reducing the overall cost of the products offered by them for
sale.
o Online shopping: Kalyan offers both interpersonal as well as online servies that
has helped them in expanding there horizon.
o Promotions: Kalyan is the world biggest saree showroom that presents grand
clearance sale up to 50% off.it also provides sessional discount sales from 10-
15% off in all cotton material and men’s wear.it also attracts the customers by
means such as lucky draws and this intern effect the pricing of the products .

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N’Style
 Economy pricing is the main strategies that the management uses to price their
products in this firm.
 It help in maintaining a strict budget that helps in cutting short of any kind of
unnecessary cost that may incur in the future.

Pricing strategy:
o Economy pricing: The pricing Strategies of these products are considered
as no frill low prices where the promotion and the marketing cost of a
product are kept to a minimum. Economy pricing is set for a certain time
where the company does not spend more on promoting the product and
service. Economy pricing can also be termed as or explained as budget
pricing of a product or a service.
o Cost of production: The cost of production in this retail outlet is keep at
bay by reducing the purchase cost of raw material and the cost incurred for
the distribution of the final products offered for sale to customers.
o Employee/Workforce: In this firm the main workforce are the women and
lady staffs who are enhanced in the skills of tailoring and designing.
o Welfare programs:This retail outlet tend to do a lot of social activities
that focus on teaching women from backward areas the skills necessary for
tailoring and designing of products that helps the firm in balancing out the
cost incurred during the training process.

N’style Mainly focuses its production in various parts of Kerala ,as the cost of
production in Kerala is comparatively low than other states.
o Demand-
As the company is in its booming stage they use bill to bill method that
focuses in the not to keep any excess items in storage that in turn reduces the amount
of wastage in the firm which effect the price setting in the firm.
They offer special event pricing due festival seasons , where the products are
offered at exceptionally low prices than the margin priced fixed that enable to retain
and increase their customer base .

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Reason of using Economy Pricing:-

Economy pricing is useful for companies who are keeping their overhead low. products
usually have a lower price than the name-brand items, due to the lack of advertising or
out-of-store promotion. Because these companies save on those aspects of the product,
they are able to keep their pricing low. Companies who use economy pricing count on
the fact that their lower price compared to the product next to them on the shelf will
increase the number of sales. Economy pricing does particularly well during times of
economic recession.
Table 1.1 : Comparison between prices of N’style and other retail outlets.

Price Range in N’style Price Range of others

Nighty Type
(Rs.) (Rs)

WINTER NIGHTY 584 onwards 800 onwards

REGULAR LONG 628 onwards 832 onwards

NIGHTY

COTTON NIGHTY 299 onwards 800 onwards

NIGHT GOWNS 260 onwards 800 onwards

LACE BODICE 410 onwards 690 onwards

SUMMER NIGHTY 407 onwards 730 onwards

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Athira Silks
 Athira silks mainly uses odd pricing and loss leader pricing strategies that
is focused in increasing the sales of the firm , this is done to attract more
and more customers to the firm.
Pricing strategies:
 Odd pricing:
 It is a pricing method aimed at maximizing profit by making micro-adjustments
in pricing structure. It relies on the assumption that consumers are calculation-
averse and will therefore only read the first digits of a price when making their
purchasing decision.
 According to this method, the relevant information of any given price does not
usually relate to the last digits, but rather to the first digits, or in other words, to
the order of magnitude of the numbers. For example, the price of Rs.17.99 looks
more like Rs.17 and not like Rs.18.
 The odd pricing strategy relies on the fact that consumers highly value their time
when evaluating prices. There is an increasing time cost associated with
examining each additional digit within any given number, which means that
when examining a price, the first digits carry more weight than the last ones.

 Loss leader pricing:

 Loss leader pricing is a marketing strategy that involves selecting one or
more retail products to be sold below cost – at a loss to the retailer – in
order to get customers in the door.
 The loss leaders are the products being sold at such low prices as an
enticement to buyers to step foot in the store. With any loss leader
product, retailers hope that, once inside the store, buyers will also buy
other items that are being sold at their full retail price. The profit from
those additional purchases generally more than compensate for the losses
on the one.

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Reason for selecting odd pricing:-

 The main reason for selecting this type of pricing strategy is that it helps a firm in
market positioning, If buyers do see odd numbered prices as bargains, that
perception should play into a business’ pricing strategy. If the company desires to
be seen as a good value, or a discount retailer, pricing items using an odd pricing
strategy makes a lot of sense.
 And companies that want to be seen more as an upscale retailer, or with premium
products or services, pricing using whole numbers – even numbers – makes more
sense.

Reason for selecting loss leader pricing:-

 Loss leader pricing is employed by retail businesses; a somewhat similar strategy
sometimes employed by manufacturers is known as penetration pricing.
 Loss leader pricing is, in essence, a bid to lure customer traffic away from the
businesses of retail competitors. Retail stores employing this pricing strategy
know that they will not make a profit on those goods that are earmarked as loss
leaders. But such businesses reason that the use of such pricing mechanisms can
sometimes attract large numbers of consumers who would otherwise make their
purchases elsewhere.

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Novelty Clothing:-
The pricing strategies used by novelty are Allowance Pricing and Discount pricing this
is usually done for getting favourable response from the customers.

Pricing strategies:
 Allowance and Discount pricing: Most companies adjust their basic price to
reward customers for certain responses, such as early payment of bills, volume
purchases and off-season buying. These price adjustments - called discounts and
allowances - can take many forms.
 A cash discount is a price reduction to buyers who pay their bills promptly, a
typical example is '2/10, net 30'. Which means that although payment is due
within 30 days, the buyer can deduct 2 per cent if the bill is paid within 10 days.
Such discounts are customary in many industries and help to improve the sellers'
cash situation and reduce bad debts and credit-collection costs.
 A quantity discount is a price reduction to buyers who buy large volume.
Discounts provide an incentive to the customer to buy more from one given
seller, rather than from many different sources.

Reason for selecting Discount and allowance pricing:

 These are used to promote sales, reduce inventory, and reward or encourage
behaviours that benefit the issuer of the discount or allowance.
 These are typically used by sellers to encourage buyers to pay earlier, improving
the seller's cash flow.
 It can help the seller to reduce their own production costs.
 It can help to reduce prices for the buyers.
 Sellers also use trade allowances to reward buyers for participating in promoting
the seller’s products.

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Swapna Silks & Sarees:

 The pricing strategy adopted by Swapna Silks & Sarees are Charm pricing and
Special Event Pricing in order to attain a wide volume of customer from different
places.
Pricing Strategies
Charm pricing:
 This strategy, involves using pricing that ends in “9” and “99”.For Example,
Rs.1999.00 and Rs.599.00.
 In Charm pricing, the left digit. Is reduced from a round number by one rupee.
 Psychologists state that Human brain processes Rs.3.00 and Rs.2.99 as different
values as Rs.2.00, Which is cheaper than Rs 3.00.This is also known as left digit
effect.
Discount Pricing:
 It’s no secret that consumers love sales, coupons, rebates, seasonal
pricing among other promotion related markdowns, and that’s exactly what
this refers to.
 There are several scenarios in you might consider going down this road. The
more obvious ones being to increase foot traffic to your store, offloading unsold
inventory, and attracting a more price-sensitive group of consumers.

Reason for selecting the above pricing strategies

 As many other apparel retailers, Swapna silks & Sarees holds its discount sale
periods for about a month following each biannual selling season, with country-
specific starting dates at the beginning of January(Fall/Winter season) and late
June or early July (Spring/Summer season).
 The generic goal of these discount pricing (clearance sale) is to maximize the
revenue derived from merchandise that is still unsold when a new collection is
about to be introduced .And also for attracting a larger amount of foot traffic to
your store and getting rid of out-of-season or old inventory

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 The reason for adopting charm pricing is to tap into the irrational part of a
consumer’s brain and trigger impulse purchasing through perception of a bargain
deal or steal.

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Benefits of pricing strategies

 One of the more recent innovations in the marketing industry is the pricing
strategy . The reason this is of benefits to companies large and small is that
it will work to calculate and analyze factors to help you arrive at a price that
is suitable for your product or service.
 The pricing strategy works by enabling you to first enter in the variables
that affect your pricing decisions.
 The factors added include market position, promotions, analysis, demand
versus price, value, product expenses and costs, and environmental factors.
There are other considerations, however these are the most common. When
you utilize a pricing strategy, this will account for all of those variables and
others that affect pricing to help you arrive at the right price for your
product.
 Pricing is a strategy, not a task. If you think of pricing as a mere task, you
will overlook many decisions, variables, and plans that go into your pricing
method and structure.
 Pricing is directly related to positioning in the market and it is one of the
four elements of your marketing mix. It also affects other elements in
various ways, so you have to make sure that you set your prices
accordingly.

Concerns of Pricing Strategies:

 Pricing: More ethics than legality
There is a general consensus that marketing strategies must not infringe on values
like honesty, transparency, and autonomy. As such, the main crux of pricing
ethics concerns the establishment of a balance of power (through information)
between the producer and the consumer. In a completely free market, producers
often have the upper hand because they are in control of their products and
processes. This potentially lead to unethical practices (using cheap or harmful
materials, lying about benefits, etc.), which are deemed harmful for society as a
whole.

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 Price fixing: Collusion at its worse

Price fixing involves the an agreement between a group of people on the same
side of a market to buy or sell a good or service at a fixed price. Typically,
competition between these participants for consumers drives down prices for
goods.
 Supra competitive pricing: Monopoly gouging
Sometimes the value that consumers place on a good is much greater than the
cost of producing that good. In such cases, there is controversy about whether the
corporation is justified in charging a much higher price and matches the
perceived value.

Advantages & Opportunities

 Pricing strategy let the business to control the competition by preventing losing
market share and customers to the competitors. Assuming you’ll have the
adequate intelligence from the competitors through right technology. By the aid
of that intelligence, you can respond every move of your competitor. As a result,
you can better position your business towards different strategic decisions of
competitors and won’t lose your customers because of the price wars

 Pricing is considered as one of the most important criteria for shoppers while
making their final purchase decision. More than 60% marked pricing as the first
indicator.

 With the pricing strategy, you’ll take the first steps of dynamic pricing, a more
sophisticated approach that stands at the top of competitive pricing strategy. In
dynamic pricing, frequently updated competitor pricing information can be used
as a triggering factor to update your own prices depending on certain pricing
rules for your product assortment. With the abilities of the dynamic pricing,
you’ll be able to compete better in the industry and allows you to maximize
profits with each customer.

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 Pricing strategy can be combined with some other pricing strategies to make it
even more efficient. For example, to hold the profitability through pricing
strategy, online retailers should always keep their costs in mind, and use a mixed
approach, where cost-based pricing may decide on the target profit margins
according to the pricing.

 Pricing strategy does not only mean cutting your prices. There are some
opportunities to increase your prices while monitoring the competition. For
example, sometimes, your prices may be too low when compared to other
retailers in the market, so even lifting up the price by 5% or 10% isn’t really
likely to affect your competitive position. This is an opportunity to test a price
increase, improving your profit margins and still being the most competitive in
the market. By gathering price intelligence data from the market, you will have a
clear view of your price positioning among your competitors and detect the price
differences won’t be a hassle for you.

Disadvantages & Risks

 If a retailer just focuses on competing with the other players in the market, they
may miss covering production and overhead costs. As a result, there is a risk of
losing from margins.

 The situation at above is valid if you are selling premium products. For example,
in the luxury market, online shoppers tend to feel more special and don’t care
about the prices. So, trying to be competitive in such industries may harm the
customer loyalty and brand value. It is better to mix consumer-oriented and
market-oriented pricing strategies in these scenarios.

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 By setting the competitive pricing intelligence, retailers assume that competitors

have priced their products correctly. But, the pricing strategy of competitors may
not fit with the company and it causes disharmony in the company. So, it would
be better mix competitive pricing with some other strategies.

 For small-sized companies, creating the resources such as technologies, money,

new staffs to sustain competitive pricing strategy be a hassle.

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CHAPTER-IV

CONCLUSION

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The objective of the study is to find out the Pricing Strategies towards Garments
Segments with special Reference to N style Piravom, Novelty Textiles Market Road
Ernakulam, Kalyan silks Kochi, Swapna Silks Eramaloor and Athira Silks Ernakulam.
The main purpose of this study is to evaluate which is the most suitable pricing strategy
for retail Garment segment.

The study clearly shows that the adoption of pricing strategies by various retail garment
shops depends upon their size, brand value, quality, quantity, design, economic condition
in and around the shop situated, etc.

An organization can adopt a number of pricing strategies; the pricing strategy will
usually be based on corporate objectives

After selecting a pricing objective you will need to determine a pricing strategy. This
will assist you when it comes time
to actually price your products. As with the pricing
objectives, numerous pricing strategies are available from which to choose. Certain
strategies work well with certain objectives, so make sure you have taken your time
selecting an objective. Careful selection of a pricing objective should lead you to the
appropriate strategies. If the pricing strategy you choose seems to contradict your chosen
pricing objective, then you should revisit the questions posed in the introduction and
your marketing plan.

Additionally, different pricing strategies can be used at different times to fit with changes
in marketing strategies, market conditions, and product life cycles. For example, if
you’re working under a status quo pricing objective with competitive pricing as your
strategy due to poor market conditions, and a year later you feel that the market has
improved, you may wish to change to a profit margin maximization objective using a
premium pricing strategy.

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In the conclusion of pricing strategies, setting the price for the company’s products and
services are a vital roles and important parts for our business success, through the
understanding the distinct between cost and price which company charge the appropriate
and best price which means customer is willing to pay a price to your products then can
maximize sales volume and profit margin.

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BIBLIOGRAPHY

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1.Online References

 http://swapnasilks.in/about-us.php#swapnasilks
Retrieved on 2018
 https://kalyansilks.com/about-process
Retrived on 2017
 http://nstylenighties.com/aboutus.html
Retrived on 2016

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