pricing and distribution decisions

7/29/2019 Pricing and Distribution Decisions

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Factors affecting

Pricing decisions


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Factors affecting Pricing decisions

Cost of the Product

Life-Cycle of the Product

Product Substitution Elasticity of Demand

Competition Policy

Marketing Objectives

Capacity Utilisation Ratio


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Factors affecting Pricing decisions

Channels of Distribution

External Environment

Type of the Product

Consumer Profile

Government Policies, Rules and Regulations

Image

Product Differentiation Exchange Rates


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Factors affecting choice ofDistribution Channels

Market Considerations

Number of Present and Potential

Customers Geographic concentration of customers

Order Size


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Product Considerations

Unit Price of the product

Perishability Newness of the Product

Technicality of Product

Type of Product


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Company Considerations

Marketing Policies & Strategies

Desire to Control the channel Financial Resources

Managerial Resources

Services to the Customers


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Middlemen Considerations

Market Reputation and Goodwill

Location Financial Resources

Product Line Specialisation

Access to Desired Market


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Middlemen Considerations

Available Facilities

Availability of Desired MiddlemenAttitude towards Policies of Marketing

Company

Prospective Sales Cost Factor


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For the first time in the history of HUL, more than 4,000employees, participated in one of the biggest customerconnect initiatives of transforming general trade stores intoPerfect Stores over a period of six days all over the country.

The employees worked along with 1,000 merchandisers andabout 20,000 retailers covering more than 70 cities acrossthe country and created more than 15,000 Perfect Stores inIndia. The Perfect Stores initiative is aimed to improve theavailability and visibility of HUL products in retail storesacross the country while also helping the retailers to win with

their shoppers with increased availability of HUL productsand improved display of products across categories in theirstores.


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MUMBAI: Nearly 4,000 staff of Hindustan Unilever, or HUL,including its chief executive officer Nitin Paranjpe, will thisweek dust the dirty shelves at your neighbourhood kiranashop and arrange soaps and shampoos in order to boost

sales to regain its past glory as the fastest growing consumergoods company. ( Watch )

Project 'perfect stores' is the world's biggest consumerconnect initiative in Unilever family to raise falling marketshare of the Indian arm. If succeeds, this model will be

replicated in other emerging markets.
http://economictimes.indiatimes.com/videoshow/5890767.cmshttp://economictimes.indiatimes.com/videoshow/5890767.cms


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This week, HUL would attempt to transform nearly20,000 mom-n-pop stores and chemists selling itsbrands in 72 cities into one resembling anorganised retail store such as Spencer's and BigBazaar, though small in size.

These ``perfect stores'' are standardised oneswith set plans for fixtures and products anddisplay. HUL's experience shows a neat

segmented arranging of similar products helpsboost sales 30% of a store since 70% of purchasedecisions are made on the spot.


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The objective of the programme is to help the customer better navigate the store," said Hemant Bakshi,executive directorsales and customer development. "It will scale up the sales of the store in general,including those of our competitors," said Mr Bakshi who will fly to Coimbatore on Monday to take part inthe programme.

This is back to basics for executives living in ivory tower who missed the Indian economic growth storyof the last decade when nimbler rivals such as homegrown Godrej Consumer Products grew.

HUL's sales grew 110% over the last four years-- from 2004-05 to 2008-09-- compared with Godrej's148% during the same period, according to data available from BSE.

Its shares, once a darling of investors, have trailed rivals. It has raised 74.34% in the last five years--from April 30, 2005 to April 30, 2010-- when rival Godrej Consumer Product's rose 320.88%. Thebellweather sensex rose 185.3% during the period, according to Bloomberg.

After the global head Paul Polman taking charge, the new mantra at Unilever is ``consumer'' and byebye ``shareholder interest''. He is looking for increasing contributions from emerging markets such asIndia as sales in the Western markets falter.

"It's a positive aggression, which, for a change, is not led by advertisements on television," said HarishBijoor, brand consultant and CEO of Harish Bijoor Consults Inc.

pricing and distribution decisions

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