COMPETING ON PRICE

SUBMITTED TO:Prof. Atul Tandan

SUBMITTED BY:Anjali GuptaAnshul GoyalArchit MishraArjun KauraAshima Chawla

INTRODUCTION

HOW BRANDS COMPETE ON PRICE

BIG BAZAAR

EASY DAY (PAKHOWAL ROAD)

CONDITIONS THAT FAVOR SELLING ON PRICE

• Tap price sensitive consumers.

• Price demanded by premium products is not worth it.

WHEN THE “GOUGE GAP” IS TOO WIDE

Micromax

VsApple

• Opportunity for low-cost producer

• Change in buying behavior

• Eg- Reliance v/s airtel

WHEN THERE IS A SHIFT IN THE POINT OF DIFFERENTIATION

• Consumers see no difference between products

• Cars, laptops, cell phones or more recent smart phones

WHEN PRODUCTS BECOME COMMODITIES

• Government regulation keeps prices high.

• Sectors like Aviation , automobiles have seen rock bottom prices after deregulation.

WHEN MARKETS ARE DEREGULATED

• Low-cost low-price strategy

• Generate economies of scale

• Production in high volumes

WHEN THE LOW-PRICE FORMULA CAN BE APPLIED IN NEW ARENA

HOW TO COMPETE ON PRICE

• Ruthless cost cutting through reengineering

• Stressing equal quality at lower prices

• Specialization and lower prices

• Copying and cutting prices

• Letting prices dictate costs

WHETHER TO, OR NOT TO, COMPETE ON PRICE?

• http://www.answers.com/topic/price-competition#ixzz2Hcwibnvg

• http://www.tcyonline.com/blog/competitive-pricing-strategy/

• http://www.entrepreneur.com/article/222528

• http://www.mxmindia.com/2012/02/private-labels-of-retailers-bharti-retail-future-group-outsell-national-brands-in-own-stores/

• http://articles.economictimes.indiatimes.com/2009-09-09/news/28489878_1_private-labels-wal-mart-easyday

REFERENCES

THANK YOU !