Price

Price Decision of Savlon soap bar:

Pricing is the most crucial part for any brand. It is the amount which a customer pays and from
what a company makes their profit. Savlon is the one of the prestigious brands of ACI. They
have already created a good customer using friendly soap line. This soap line is mainly based on
hygiene and antiseptic germ-free formula.

Being an antiseptic soap line the factors for price decisions work differently for Savlon.

 Competition: In the market there’s tons of antiseptic soap line brands. These brands
are already in the lead. For example: Dettol, Lifebuoy, and others. As customers easily
find another preferences in the market Savlon has fixed their prices according to their
competitors price range. Because if the price range went way too higher then the others
brand, customers won’t buy it. Plus, savlon have created more soap lines for more
specific uses with higher price. This line serve a totally different customer base. By this
Savlon create a more strong place in the market and make profits.
 Material-Cost: To follow a price range which is budget friendly for all the customers,
Savlon maintain the material costing nearly. If the material costs the soap got higher the
selling price will be automatically higher, which eventually results in loss. Because
Savlon need to constantly hold their target market and make profit in minimum costing.
 Customer's perceived value: It is the customer’s own perception about the Brand.
Savlon have already created a customer base line. These customers have their own ideas
and choice for Savlon soaps. To make it stronger Savlon sometimes give away coupons
or discount cards to enhance the loyal customer line and attract new ones. In all this
savlon may compromise their price for the time being to make profit in the future.
 Wholesale-Retail pricing: Salvon follows different pattern of pricing on buying
amount. For example, in retail, a 75gm antiseptic soap bar is 27tk. But for wholesale the
price got decrease on the amount of numbers. By this Savlon attract the wholesalers more
to buy and sell their product more.
 Categorized pricing based on using: Salve has 3 categorized soap: Active, Mild
& fresh. These are the basic using soap have a friendly price range.

But Savlon has also introduced two more types, which are: 1) Savlon sports & 2) Savlon
men.

These two types are for more specific use with more
upgraded formula. So, the price range of these two products
is a bit higher then the others. As the target market and
segmentation is totally different and more precise, higher
price doesn’t matter here. The customers of these two types
will eventually buy it for the specific uses and benefits.
Thus, Savlon create a different customer base in the market
and make profits.