PRESENTATION ON PRICING STRATEGY FOR CLINIC ALL CLEAR

FOR THE SUBJECT:-

MARKETING MANAGEMENT

SUBMITTED TO PROF KAMAL GUPTA

PRESENTED BY SUBHOJIT DUTTA BROJA SUNDAR MONDAL SUBHANKAR DEY SANTANU DUTTA .

PRICING STRATEGY  Understand the role of pricing policies in developing a strategic approach to pricing Establish the link between a firm’s pricing actions and customer expectations & future purchase behaviors Provide frameworks for understanding customer behaviors and establishing policies to ensure profitable pricing outcomes Understand the major stages of the price setting process and the role of value and cost at each stage Strategic alignment. & Customer response. 12/19/11 33 . Price-volume tradeoffs.      Show how to communicate new prices to maximize perceived fairness and minimize adverse customer response .

Lack of proactive (not reactive) pricing policies reduces firm negotiating power with potential buyers who devise purchase strategies to gain discounts. 12/19/11 GROUP 7 44 • • • . Compounding the competitive landscape issue is the fact that many firms provide incentives based on units sold and not on margin gained off each sale. This has led to a large number of firms that have created “strategic sourcing” programs. One problem is that purchasers tend to research and understand the competitive landscape better than the firm’s sales representatives.PRICING POLICY • Most managers have difficulty communicating their firms pricing policies… because they don’t have any….

12/19/11 55 .SETTING THE PRICE DEFINE PRICE WINDOW-set initial price range based on differential value & relevant costs. SET INITIAL PRICE-determine amount of differential value to be captured. COMMUNICATE PRICES TO MARKETdevelop communication plan to ensure prices are perceived to be fair.

CLINIC ACTIVE -1991 12/19/11 66 .SHAMPOO INDUSTRY LAUNCHED HUL undisputed leader from the early 90’s. CLINIC PLUS-1971. SUNSILK-1964. CLINIC ALL CLEAR-1987. SUNSILK RE LAUNCHED-1987.

12/19/11 77 . Bulk of the growth at low price of the market as a result of increased rural consumption. Globalization. increasing purchasing power etc has demand for personal care products like shampoo. increase in awareness levels. Rapid emergence of the organized sector due to reduction of increase duties.MAJOR ISSUES Low penetration of shampoo market in INDIA. liberalization.

.PENETRATION PRICING HUL responded with its own 50 paise version of Lux shampoo The company launched 30 ml bubble pack for Clinic Plus (Rs 8) Clinic All Clear has less price in premium segment.

5. Burgeoning middle class. Teaming millions. Low penetration levels. Huge un topped market.ENTRY OF COMPETITORS 1. 12/19/11 99 . 3. 2. 4. Westernized youth.

THE PRICING TRIPOD Pricing strategy Costs 12/19/11 Competition Value to customer 1010 .

THREE MAIN APPROACHES TO Cost-based pricing PRICING Set prices relative to financial costs (problem: defining costs) Activity-based costing Pricing implications of cost analysis Competition-based pricing Monitor competitors’ pricing strategy (especially if service lacks differentiation) Who is the price leader? Does one firm set the pace? Value-based pricing Relate price to value perceived by customer 12/19/11 1111 .

MAJOR PLAYORS HLL-63% BEAUTY COSMETICS-13% P & G-12% AYUR LTD-8% 12/19/11 1212 .

TOP SHAMPOO BRANDS NORMAL SHAMPOO CLINIC PLUS SUNSILK PANTENE CHIK HARBAL SHAMPOO AYUR DAVUR VATIKA NYLE 12/19/11 1313 .

. ANTI DANDRUFF SHAMPOO PREMEUM PRODUCTS SHEHNAZ HUSSAIN REVLON FLEX L.OREAL CLINIC ALL CLEAR HEAD & SHOULDER PANTENE PRO-V 12/19/11 1414 .CONT…….

WHAT DO YOU THINK ABOUT THE PRICE OF CLINIC ALL CLEAR? GR OU P 7 Click to edit Master text styles Second level ● Third level ● Fourth level ● Fifth level 12/19/11 1515 .

GR OU P 7 WHAT INFLUENCES YOUR DECISION WHILE BUYING CLINIC ALL CLEAR? 12/19/11 1616 .

55 Rs. 1. 12/19/11 1717 . 105 Rs.5ml 40ml 100ml 200ml 400ml Rs. 3 At the time of launching it used pricequality inference strategy. Currently it is using reference pricing as well as value pricing. 30 Rs. 185 Rs.5 Rs.PRICE MIX GR OU P 7 Different size of packet and price 4ml 7.

fragrance & ingredients. Can make first growing saloon business & compete with other retail brands. Re launch its organizes shampoo brand to capture herbal shampoo segment. Innovative promotion channel.MARKETING STRATEGY PRODUCT FOR PRICING PRICE      12/19/11 Variants are harmonized in turns of the product. Color.   1818 . Highest number of variants promotions.  Intensive distribution network to expend its rural market. Brand experience in form of therapy centers.

Thank You ! .

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