competing on price
DESCRIPTION
competing on price, price, Market priceTRANSCRIPT
COMPETING ON PRICE
SUBMITTED TO:Prof. Atul Tandan
SUBMITTED BY:Anjali GuptaAnshul GoyalArchit MishraArjun KauraAshima Chawla
• Tap price sensitive consumers.
• Price demanded by premium products is not worth it.
WHEN THE “GOUGE GAP” IS TOO WIDE
• 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
• Ruthless cost cutting through reengineering
• Stressing equal quality at lower prices
• Specialization and lower prices
• Copying and cutting prices
• Letting prices dictate costs
• 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