Pricing practises

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Pricing practises

  1. 1.  COST-PLUS PRICING MULTIPLE PRODUCT PRICING TRANSFER PRICING PEAK-LOAD PRICING SYSTEM
  2. 2. "Customers want high quality at low prices and they want it now." – Bill Gates
  3. 3.  1) PERFECT COMPETITION 2)IMPERFECT COMPETITION › MONOPOLISTIC COMPETITION › OLIGOPOLY › MONOPOLY
  4. 4. ITC has diversified presence in: Cigarettes Hotels Packaging Personal care Agri-based business Branded apparel Safety matches Greeting cards
  5. 5.  Main objective was to compete effectively with players who are already there. Hence, it launched direct frontal attack by introducing similar priced product. ITC already enjoyed advantages over competitors through e-choupal initiative. This also facilitate timely supply of raw material. ITC’s printing and packaging business also leads to high quality, cost effective and innovative products.
  6. 6.  The company dose not raise the price of its most selling brand(Gold Flake (S)) so that it can get max market share and earn money on its premium brands(Insignia). The cost structure of the company plays a major role in determining the prices the various stages and the companies cost structure is as follows:- Fixed Cost(Plant operations) .69% &Variable (manufacturing , packaging etc. 99.31%) Further on the company cannot afford to raise its mark-up due to the presence of intense competition.
  7. 7.  Cost of raw material is same for every industry Logistics Labor Larger the Quantity lower the production cost Target market Brand value Government policy
  8. 8.  Form of market Whole sales supply chain compititors
  9. 9.  Study of market Cost calculation Production expenses Channel of supply Brand value

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