WHEN SHOULD A COMPANY INITIATE A PRICE CHANGE ?

INITIATING PRICE CUT

1. Excess Plant Capacity

2. To Keep Customers

3. To Beat Competitors

WHY?

Shallow Pockets TrapFragile Market

Share Trap

But..

Low Quality Trap

Price War TrapShallow Pockets Trap

But..

INITIATING PRICE INCREASES

1. Cost Inflation

2. Anticipatory Pricing

3. Over Demand

WHY?

How?

Delayed Quotation

Pricing

Escalator Causes

UnbundlingReduction

of Discounts

CUSTOMERS IN GENERAL HATE PRICE INCREASES

SO.. FIND ALTERNATIVE SOLUTIONS!!

Reduced bar size and kept price

same!!

Kept bar size same, and

increased price!!

THE CANDY BAR FIGHT!!

SO.. FIND ALTERNATIVE SOLUTIONS!!

Smaller cars at affordable

prices!!

CREATING NEW

ECONOMY BRANDS

THANK YOU