Ditch THE

Why?

To

Provide great discounts to increase their sales.

During weak demand

?

How else to Bolster

Weak demand due to sluggish growth rate of gdp

“across the board “ price cuts reduces the profit:

Deep DISCOUNTS devalue the PRODUCT or SERVICE and limits it price increase in future.

“IN the present economic environment what may be the solution to increase sales without giving discounts and devaluing the product?

Adaptive pricing

The preferred

Adaptive pricing: which capitalizes a fact that different customers have different needs and place different value on different product.

Key to Adaptive pricing:“PRICE “ is one of the product’s attributes.Different channels different prices:-

By using ADAPTIVE PRICING : increse the product’s appeal to the product without decreasing the priceCompanies using adaptive pricing technique weathered off RECESION easily rather than companies giving DISCOUNTS.

Method of adaptive pricing: VERSIONING:- to provide “best” “better” and “good” versions of the same product.Providing quality products(new version) at low price :-powerful magnet for price sensitive consumers.

What a company should for ADAPTIVE PRICING?

Introduction of Lower Priced version:

Using promotions to avoid price drpos

Adapt products to maintain affordability:

Unbundle services and add extra fees:

Withdraw recession pricing tactics:

Introducing new premium products:

Increase in the price of regular products:

Offer new luxury experiences:

Some examples:

It is unable to defeat airlines and hotels in terms of adaptive marketing:

Adaptive pricing in terms of INDIAN market:

Telecom industries: unbundling the services:

Oil,shampoo, soap, dry fruits etc.:-reduction in volume and size.

Cloth showroom and newspapers:

Airlines and hotels: unbundling the services,providing special luxuryAnd incentives

Created by Anurag Singh,NIT Silchar,Undwer the internship of Prof. Sameer Mathur,IIM lucknow.