Pricing Stratigies: Preented To: Maam Zara

PRICING STRATIGIES
 PREENTED TO: MAAM ZARA
 PRESENTED BY:
• AMINA TAHIR (L-1088)
• VERDAH
Pricing Strategies: Captive
Pricing
Promotional
Pricing
Bundle Value
Pricing Pricing
Price
Skimming Geographical
Economy Pricing
pricing Psychological
pricing
Pricing at
Market
Premium
Penetration
MARKET PENETRATION
• Penetration pricing is a strategy used by businesses to attract
customers to a new product or service by offering a lower price
initially.
• The lower price helps a new product or service penetrate the
market and attract customers away from competitors.
• Penetration pricing comes with the risk that new customers may
choose the brand initially, but once prices increase, switch to a
competitor.
EXAMPLES:
• Khaadi is a namely brand of Pakistan and is the
biggest example of market penetration.
• Limelight a clothing brand follows market
penetration
• Starbucks, a coffee place shows market penetration in
different ways
• Miniso shows market penetration in many ways
• Optp, famous food place shows market penetration
ECONOMY PRICING
• Economy pricing is set for a certain time where the company does
not spend more on promoting the product and service
• Economy pricing can also be termed as or explained as budget
pricing of a product or a service.
• The pricing Strategies of these products are considered as no frill
low prices where the promotion and the marketing cost of a
product are kept to a minimum.
• The main aim is to spend less on the advertising and promotions
of the products but to attract the customers by keeping a low price
in the market
EXAMPLES:
Following are considered in economy pricing:
• Robinsons is non named company who sales fruit
juices at low prices
• Voice mobile phones are affordable than a smart phone
• Street foods are more affordable by locals than
branded foods
• Vegetable oil can be found in markets easily
• Different detergents
PRICE AT PREMIUM
• Premium pricing is a strategy that involves tactically pricing your company’s
product higher than your immediate competition.
• The purpose of pricing your product at a premium is to cultivate a sense in the
market of your product being just that bit higher in quality than the rest.
• It works best alongside a coordinated marketing strategy designed to enhance
that perception.
• it involves setting prices high and keeping them there.
• Luxury brands have often implemented premium pricing
• It includes products affordable by elite people.
EXAMPLES:
• Zara shahjahan clothing brand
• Mac
• Hanif jewellers
• Calvin klein
• Tom ford
• Asim jofa
• Republic
PRICE SKIMMING
• Price Skimming is a strategy of setting a relatively high introductory
price of the product when the product is new and unique and the
market has fewer competitors.
• The idea is to maximise the profits on early adopters before
competitors enter the market and make the product more price
sensitive.
• The initial high price not only helps the business to recover its
development costs but also gives the product a perception of
being an exclusive and premium product.
EXAMPLES:
Latt liv
Miniso
Samsung
Apple
Vivo
PSYCHOLOGOCAL PRICING
• Psychological pricing refers to the psychological pricing strategies marketers
use to make customers buy the products, triggered by emotions rather than
logic.
• The price is set just below a whole number in order to make the product and
price more attractive.
EXAMPLES:
• Deals of kfc
• Timmy’s deals
• Deals in jessies burger
• Limelight collection pricing
• Makeup product deals
• levis super offers
BUNDLE PRICING
• Bundle pricing involves selling packages or set of goods or services at lower
prices than they would have actually cost if sold separately.
• This is an effective strategy to bundle unsold products or products with less
demand with the high selling products to clear up the shelf space and to
increase the profits.
• This pricing strategy is mostly followed by grocery stores.
• Bundling works wonders when two complementary products are bundled
together.
• This pricing strategy simplifies the buying experience, it also increases the
sales of the products and helps to move out the slow-moving products
EXAMPLES:
 Maggie noodles
 Subway deals
 Cold stone ice cream parlour deal
 Nintendo gaming deals
 McDonalds deals
 Kfc deals
 Broadway deals
 Pizza hut deals
 Optp deals
GEOGRAPHICAL PRICING
• Geographical pricing is a pricing model where the final price of the product is
decided on the basis of the geography or the location where the product is being
sold.
• When an organization is operating in multiple countries or multiple regions
within a country, then they have to implement geographical pricing as per the
local taxation laws and local requirements.
• EXAMPLES:
• It includes the courier services
 leopard
Tcs
• Amanah mall & emporium mall
• J. Pakistan & j.England
PROMOTIONAL PRICING
• Promotional Pricing is one of the most powerful sales promotion
techniques in which the prices are reduced drastically for a short
duration.
• It is also termed as On Sale pricing. This helps to increase the demand
for the product.
• Price promotions or promotional pricing is the sales promotion
technique which involves reducing the price of a product or services in
short term to attract more customers & increase the sales volume.
• EXAMPLES:
• Daraz
• Sales on different clothing brands
• Different deals in food & beverages
VALUE PRICING
• Value-based pricing is a strategy for pricing goods or services that
adjusts the price based on its perceived value rather than its historical
price.
• The strategy is used when the purchasing decision is emotionally-
driven or when scarcity is involved.
• Value pricing is going to price items at a higher level than cost-plus
pricing by increasing the perceived value of the good or service.
• Value-based pricing is used when the perceived value of the product
is high. The strategy tends to involve products that possess a certain
level of prestige in ownership or are completely unique.
• EXAMPLES:
• Apple
• Samsung
• Baskin robins
• Starbucks
• Netflix
• Louis Vuitton
CAPTIVE PRICING
• Captive product pricing is the pricing of products that have both a “core
product” and a number of “accessory products.”
• It’s a pricing strategy that takes advantage of a product that will be used
primarily to attract a large volume of customers.
• Captive product pricing is typically seen more with physical products, like
a printer and ink.
• Captive product pricing falls under product line pricing, which involves the
separation of goods and services into cost categories in order to create
various perceived quality levels in the minds of customers.
CONCLUSION
• It is clear that pricing strategies play the most unique role in that it changes often,
most volatile business strategy and is dependent and interactive.
• Pricing makes a product attractive or non-attractive.
• Pricing makes a business decide how much advertising or marketing a product
gets because of the relationship to cost and consumer happiness.
• If a consumer or buyer is happy than they buy the product more regardless of
price.
• Advertising and marketing tells a consumer what they want to buy price helps that
product stand out against other like products.

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PRICING STRATIGIES

 PREENTED TO: MAAM ZARA

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