What are the major factors that influence the FMCG pricing strategy?
9 Factors Influencing Pricing Decisions of a Company
- Price-quality relationship:
- Product line pricing:
- Explicability:
- Competition:
- Negotiating margins:
- Effect on distributors and retailers:
- Political factors:
- Earning very high profits:
What is pricing discuss the various factors that determine the price of a product?
Cost of Product :- Cost of the product plays an important role in determining the price. It comprises of cost involved in production, distribution and sale of the product. Cost of product can be classified into three broad categories, namely, fixed cost, variable cost and semi variable cost.
What influences the price of a product?
There are several factors a business needs to consider in setting a price: Competitors – a huge impact on pricing decisions. The relative market shares (or market strength) of competitors influences whether a business can set prices independently, or whether it has to follow the lead shown by competitors.
What are different pricing techniques?
Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.
What are the key challenges of FMCG / CPG companies?
Setting the overall price position against other products in the assortment, or against competitors, is always a key challenge in FMCG / CPG. If you need to price a product (or service) in a new market, it makes all the difference in the world if you understand customers’ willingness-to-pay.
What are the challenges in pricing in consumer goods?
Consumer Goods Pricing 1 Price Positioning & Strategy. Setting the overall price position against other products in the assortment, or against competitors, is always a key challenge in FMCG / CPG. 2 New Product Pricing. 3 Market Launch Pricing. 4 Value Communication. 5 Price Increase Implementation. 6 Assortment Optimization.
How much does the FMCG Ljubljana-Simon-Kucher Grill cost?
Costs \% Markup €160 €100 €40 Competitor A Competitor B Competitor C Our product Grill 57 cm, Grill with trolley 57 cm Our focus today FMCG Ljubljana_Simon-Kucher_Price differentiation_20161003_Final.pptx 9
How many consumer brands have a winning pricing strategy?
In fact, only as little as 12\% of consumer brands have a winning pricing strategy. Thus, the demand for our services in this industry is high and consequently, we have grown in expertise with the many projects we have done.