Pricing Strategies between three companies in Indian market

1. A BRIEF IDEA ON PRICING STRATEGIES
BETWEEN THREE COMPANIES IN INDIAN
MARKET.
RIYA ELIZ BIJU
MBA
MACFAST

2. HUL is a market leader in Indian consumer products they are producing the brands personal care,
homecare and food and beverages, many variety of products they are producing with a reasonable
prices .
HUL adopted pricing strategy to improve their conditions:
·
A) Simple pricing policy of low cost products- Hindustan uniliver mainly believes in their products
they are producing the consumer friendly products so it increase huge amount of sales so they decided
to kept a simple pricing policy of low cost product
 for example sun silk sachets at Rs 1 like that, so that product rich a wider market. But they have not
compromised with quality of products but they are cut down the cost of the products because of its
extensive and long way reaching of distribution policy.
B) Competitive pricing policy- HUL has maintained competitive pricing policy for some of its products.
 Competitive pricing policy is setting the price of the product based on competition of that particular
products, this policy is used when a two company produce the similar kind of products. As soon as
increase or decrease in the competition of the product, price is charged on the base of competition.
·
I. Pricing strategies of Hindustan Unilever Ltd.

3. C) Offers Brand- HUL is an a wide consumer goods producer , so it try to offer many brand with
variety of products at numerous price .
For example: their personal care brand , home care and food and beverage brands offers different
verity of products. So it will help consumer to buy any one of product according to his or her own
financial capability.
D) Discount Offer- Now a day’s consumer are give the more importance to discount before
purchasing any product they first see where discount is available. In HUL tries to maintained
balance of the market in the name of discount, they offer discount for their products,
For example: 200gm of surf excel free with one kg of that products. So it automatically reduced
price of the product and consumer are eager to buy the product at discount rate so sale will
increase.
E) All income groups of people- HUL adopted pricing strategy it is suitable to all income group of
people like high income, low and medium income group of people,
For example: low income group of people like rural people hul producing small unit of product like
small lifebuoy soap at RS 5 like that.

4. Steps for developing the pricing of product:
1.Develop marketing strategy - perform marketing analysis, segmentation, targeting, and
positioning.
2.Make marketing mix decisions - define the product, distribution, and promotional methods.
3.Estimate the demand curve - understand how quantity demanded varies with price.
4.Calculate cost - include fixed and variable costs associated with the product.
5.Understand environmental factors - evaluate likely competitor actions, etc.
6.Set pricing objectives - profit maximization, revenue maximization etc
7.Determine pricing - using information collected in the above steps, select a pricing method,
develop the pricing structure, and define discounts.
II. Pricing strategies of ITC Ltd.

5. III. Pricing strategies of Johnson & Johnson.
 The quality of every Johnson & Johnson product is very good and even then, the company has
decided on an affordable pricing policy.
 Many times, its products also use psychological pricing by keeping the value of the product at
multiples of 99 or 49.
 The company for all its health care products has tried to retain their increased net prices inside the
CPI or the Consumer Price Index.
 . As Johnson and Johnson is a consumer product, it takes care of its customers through its pricing
policy.
 Johnson & Johnson is aware of its responsibility to the society and for this; they have worked
closely with the government to keep prices reasonable for medical items.
 In some cases, the prices are at a little higher rate, for instance on products like consumer goods
and baby care products, where the consumer is willing to give out the extra money for the health of
their family members.
 In cases of medical equipment, the prices are at affordably priced so that people can easily buy
those products.