Price Branding Strategy

1. Value based pricing usually starts with

customers and their perceptions of value.
Eventually, the customer will decide whether a
product is worth its price or not.
2. Cost-based pricing involves setting prices
based on the costs for producing, distributing
and selling the product. In order to make some
profit, a fair rate of return is added to account
for efforts and risks.
3. Competition-based pricing involves setting
prices based on competitors’ strategies, costs,
prices and market offerings. In highly competitive
markets, consumers will base their judgements of a product’s value on the prices that
competitors charge for similar products.

AMUL
Amul has gained more brand visibility and
results in lesser marketing and advertising costs.
Having a top of the mind positioning, excellent
supply chain channels, Amazing product line,
and the low pricing strategy have all helped the
brand grow.
They always catered to the needs of all
economic segments without any compromise on
their product quality.  
Strategy :
Products that cover a huge market segment and
are used on the daily basis like milk, ghee, ice-
cream, cheese, butter are tried and provided at
rates lesser than that of their competitors.
With the rise in the Indian economy,
transportation cost, storage cost, labor cost etc
have piled up but still, Amul provides quality
products at a fair and affordable price(for
example, reduction in prices) in comparison to
its competitors, thus emerging as the most
preferred brand.
NIKE
This element of the marketing mix identifies the prices
that the company applies to maximize profits while
attracting the desired share of the multinational market.
Nike’s investments in technology is linked with a
strategy to offer its products at a premium. 

Strategy :
1.Value-based pricing strategy

2.Premium pricing strategy

In using the value-based

pricing strategy, Nike Inc.
considers consumer
perception about the value
of its products. In the
context of the marketing
mix, this value is used to
determine the maximum
prices that consumers are
willing to pay for the
company’s sports shoes,
apparel, and equipment.

In relation, the premium pricing strategy involves high prices, based on a premium branding
strategy that establishes Nike products as higher in quality and value than competing products.
The company’s use of advertisements involving high-profile celebrity endorsers is indicative of
such emphasis on premium branding.

In this element of the marketing mix, Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in promoting its products and brand.