Retail Mgmt on Retail Pricing
-
Upload
prerna-bhadani -
Category
Documents
-
view
226 -
download
0
Transcript of Retail Mgmt on Retail Pricing
-
8/3/2019 Retail Mgmt on Retail Pricing
1/18
Presentation on Retail
Pricing
Group:
Manoj Panjwani
Nitesh Khanna
Prerna BhadaniRaghav
Sangeev Jha
Swapnil Karn
-
8/3/2019 Retail Mgmt on Retail Pricing
2/18
Understanding Price As a
Concept.
Price is the monetary value assigned by the seller to something
purchase.
A transaction by a buyer as their willingness to pay for the benefits the
products delivers.
-
8/3/2019 Retail Mgmt on Retail Pricing
3/18
Price Sensitivity.
Elasticity = % change in quantity demand
-------------------------------------------------------
% changes in any demand determinant
Different price points affects demand of particular merchandise
-
8/3/2019 Retail Mgmt on Retail Pricing
4/18
Major Factors Affecting Price Sensitivity
-
8/3/2019 Retail Mgmt on Retail Pricing
5/18
Cost-Oriented pricing
Approaches To Pricing The retail Product.
-
8/3/2019 Retail Mgmt on Retail Pricing
6/18
Demand-Oriented Pricing
Conti
-
8/3/2019 Retail Mgmt on Retail Pricing
7/18
Example
Discrimination pricing
Skimming Pricing
-
8/3/2019 Retail Mgmt on Retail Pricing
8/18
Pricing Near to cost ratherthan at a loss
LeaderPricing
Match the market pricesof competitive retailers
CompetitivePricing
When a company orbrand wants to establishquickly in a market
MarketPenetration
Pricing
-
8/3/2019 Retail Mgmt on Retail Pricing
9/18
Example
-
8/3/2019 Retail Mgmt on Retail Pricing
10/18
Psychological Pricing or odd Pricing
Retailers will often price products below around figure e.g.:- 100 to 99.50 or
99.99
Everyday Low Pricing
Prices at a level between the normal storeprice & the price of the deep discountcompetitors.
-
8/3/2019 Retail Mgmt on Retail Pricing
11/18
Psychological Pricing or odd Pricing
Example
-
8/3/2019 Retail Mgmt on Retail Pricing
12/18
BenefitsofEDLP
Perception of Fairness
ReducedAdvertising
Improved CustomerService Management
Reduced Stock outs andImproved InventoryManagement
Increased Profits Margins
-
8/3/2019 Retail Mgmt on Retail Pricing
13/18
Relationships Between
Pricing And Value
Value Quality Price Image
Value as low price,
Value as whatever is wanted from a product,
Value as the quality one gets for the price paid,
Value as what one gets for what one gives.
-
8/3/2019 Retail Mgmt on Retail Pricing
14/18
Consumer travel cost (petrol expenses, etc.)
Parking charges
Level of traffic congestion
Free transit scheme
Pricing mix changes
Need of multi purpose visits
Other Cost and Therefor Pricing Implications..
-
8/3/2019 Retail Mgmt on Retail Pricing
15/18
Competitor activity affecting demand. Inadequate original pricing policy.
Merchandise did not meet consumer needs or preferences.
Overstocking or poor stock keeping.
Quality of merchandise inferior due to manufacturer or damage.
Need to release the display space for other merchandise.
A policy to improve customer goodwill through markdowns.
Sales staff not being properly trained or encouraged.
Economic or seasonal problem.
Why Markdown Price Policy Consider By
Retailers?
-
8/3/2019 Retail Mgmt on Retail Pricing
16/18
Value pricing Promotional pricing
Low interest financing Psychological
discounting Special event pricing
Differentiated Pricing Time pricing
Bundling
-
8/3/2019 Retail Mgmt on Retail Pricing
17/18
Time pricing Value Pricing
-
8/3/2019 Retail Mgmt on Retail Pricing
18/18
Bundling