NESTLE PRICING STRATEGY

Price

In Price strategy, I would adopted the strategy of non-price competition. It is offering one price
for NPL to all. It also keeps the check on distributors to maintain single price of NPL. It offers
trade discounts to its distributors.

“Price is the amount of money and/or other items with utility needed to acquire a product and
utility is an attribute with potential to satisfy the wants.”

A product price influences wages, rent, interests, and profits. Some prospective customers are
interested in low prices, where as another segment is more concerned with other factors, such as
service, quality, value, and brand image. Consumer’s perception of quality may be influenced
not just by price but also by such factors as store reputation and advertising.

I estimated the cost by doing accumulated production because if they produced mass production
so it reduced their labored cost and other cost for production process it’s a big advantages of the
company who produce large quantity of units. With the help accumulated production Nestlé
Company has a low cost of production and high profit margin.

Next,company selecting a price method of going rate price because their pricing near the
competitor pricing. As an example, Nestle juices have a market leader in beverage industry. Last,
Nestlé set the final pricing related to their market competitors so Nestlé price do not have impact
on the company policy , and other marketing activities.

The Pricing objectives are separating into different oriented. The first is profit- oriented which
help to achieve a target return and maximize profit. The second is the sales-oriented which help
to stabilize prices and maintain or increase market share. The last is status quo-oriented that help
to stabilize the prices, to meet competition, to standardize their quality.