pricing strategy and practices

8/12/2019 pricing strategy and practices

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BRANDHOPER


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DAFFODIL INTERNATIONAL

UNIVERSITY (DIU)

7thRanking place among all the

private universities

Its amendment in 1998 and

Daffodil International University cameinto being on 24th January 2002


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PRODUCT LINE

Undergraduate and postgraduate: 28

-BBA

-MBA International IT certification courses: 6

Proposed programs: 8

Short courses: 5


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WE HAVE CHOSEN

BBA !!!

WE HAVE PROSECUTED A

RESEARCH WORK BASED

ON BBA OF DIU


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LETS HAVE A DEEPERLOOK INTO IT..

LEPESTOF DIU !!!


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Legal FactorRules and regulations of UGC

Private University Act 2010,

company act 1994,

trademark act 2009,

value added tax act 1991,

labor act,

environmental act

the Private University Act (PUC), 2010


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Ecological Factors giving donation to the flood

affected victims,

providing warm clothes the poor inthe winter season,

observing tree plantation program,beautifying the roads,

observing world food day, observingworld habitat day


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Political FactorsMinistry of Education and UGCare

the apex policy making institution of the

Government regarding administration anddevelopment of higher level education sector.

Any policy change in educational sector affectsDIU apparently.


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Economic Factors Income level of the people of

Bangladesh Inflation rate of Bangladesh

Exchange rate of Bangladesh: It willaffect the foreign students studying in DIRecession Interest rate

Labor costUnemployment levelTaxes and tariff


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Socio cultural Factors Anti drugs campaign

Pohela boishakh day celebration

Independence day celebration International mother language day

celebration

Anti tobacco poster competition Blood donation program


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Technological FactorsComputer

Network Equipment

Data CenterLicense Copy Software

University Computer Labs and Network

In total, Computing Laboratories have more

than 550computers


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MARKETING MIX :

PRODUCT : DIU IS RELATED WITH SERVICE WHERE

PRODUCTION AND CONSUMTION ARE INSEPARABLE

Undergraduate Programs (Faculty of Science & Information Technology)

Undergraduate Programs for Diploma holders (Faculty of Science &

Information Technology)

Undergraduate Programs (Faculty of Business & Economics)Undergraduate Programs (Faculty of Humanities and Social Science)

Master Programs (Faculty of Science & Information Technology)

Master Programs (Faculty of Business & Economics)

Master Programs (Faculty of Humanities and Social Science)

AVAILABLE SERVICES :


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Service Product range

Undergraduate Programs (Faculty of Science &Information Technology)

Taka 3,80,000-tk 4,80,000

Undergraduate Programs for Diploma

holders (Faculty of Science & Information

Technology)

taka 2,96,500-tk 3,56,050

Undergraduate Programs (Faculty of Business &Economics) taka3,51,100- 4,85,900

Undergraduate Programs (Faculty of Humanities

and Social Science) taka1,12,750- 3,55,000

Master Programs (Faculty of Science & Information

Technology) taka1,05,700-1,68,000

Master Programs (Faculty of Business & Economics)

taka1,40,500-2,13,600

Master Programs (Faculty of Humanities and Social

Science) taka77,500-1,34,250

PRICING :


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SERVICE : Service providers have to givespecial thought to where the service would beprovided.

DIUHAS CHOSEN SUITABLEPALCE FOR ITS CAMPASS :Main Campus: Ahulia model

town, Dhaka.

Campus 2: Sobhanbag campus

Uttara campus 1

Uttara campus 2

Lalmatia


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ADVERTISING PERSONAL SELLING

SALES PROMOTION

PUBLIC RELATION DIRECT MARKETING

PROMOTION : DIU FROM ITSINCEPTION IS USING DIFFERENT TYPES OFPROMOTIONAL TOOLS TO GET STUDENTS INITS DOOR


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PEOPLE: people are a defining factor

in a service delivery process. In DIU thefaculties providing the service to the

students, the administrative officers and

the staffsall are part of the elementPeople.

PROCESS:

The process of delivering the educationalservice is crucial since it ensures that the

same standard of service is repeatedly

delivered to the customers.


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PHYSICAL EVIDENCESince services are intangible in nature most

service providers strive to incorporate certaintangible elements into their offering to enhance

customer experience.

THE ACADEMIC BUILDINGS, LAB FACILITIES,

GYMNASIUM, FOOD COURT ARE ALL PART OFPHYSICAL EVIDENCE.


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ALLOCATION OF COST

Cost allocationis a process of providing relief to sharedservice organization's cost centers.

There are two approaches to allocate the cost that a firmmay use-

Allocate costs to activities of production and delivery of

daily products

Allocate on the basis of key determinants of competitiveadvantage in selling

various customers.


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Utilization of capacity: DIU has the capacity ofaccommodating approximately 2300 students. It has threesemesters.

Different numbers of students get admission in these threesemesters.

Like:Spring (January): In this season almost 1600 students

get admission. This can be said as the peak period,capacity utilization here is the highest.

Capacity utilization= (Actual number of students

/potential students) *100= (1600/2300)*100=70%


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FALL SEASON (SEPTEMBER): In this season

almost 800 students get admission. Thiscan be said as the off period, capacity

utilization here is the lowest.

Capacity utilization= (Actual numberof students /potential students) *100

= (800/2300)*100=34%


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SUMMER SEASON In this season almost1100 students get admission.

Capacity utilization= (Actual number ofstudents /potential students) *100

= (1100/2300)*100= 47%


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Critical factors in the pricing decision of DIU

Effective cost information

Customer valuation

Market target

Competitive dynamics

MARKET SEGMENTATION


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MARKET SEGMENTATION1) Geography

1) City

2) Density

2) Demographic

1) Age

2) Family income3) Education

3) Psychographic

1) Social class

2) Life style

4) Behavioral

1) Occasion

2)Benefits


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TARGET MARKETThe target market of DIU are HSC studentsand A-Level Students having minimum 2.5GPA both in SSC and HSC or any equivalentbackground from any group may apply foradmission in BBA.

. Completing five O-level subjects and atleast two A-level subjects with at least GPA2.5 Below C grade in any subject is notacceptable) may apply for admission.


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POSITIONING STRATEGY

1. Permanent Campus

2. Quality Education3. Qualified Academicians

4. Academic Diversity

5. Efficient Administration6. Wifi covered

7. One student One Laptop


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PRICE AS A MARKETING

STIMULUS IN DIU :

Price like other promotional activitiesact to stimulate consumer response interms of sales. The expected pattern isan increase in sales with a cut in priceor the introduction of a w product

DIU OFFERS PRI ING PROMOTIONSUCH AS IF A STUDENT GETADMITTED IN A SPECIFIC PERIOD HEWILL GET DISCOUNT.


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STUDENTS INTERPRETATIONS OF DIU

TIME IMPLICATIONS This includes whether classesand examination take place on the due date, also whether thestudents are able to complete their B.B.A degree within 4 years.

PSYCHOLOGICAL IMPLICATIONS: It meansstudentsvaluing some non-economic functions of the

service they get. As a non-economic function, DIUprovides the feeling of prestige and statuses to thestudents.


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BREAK-EVEN

ANALYSIS


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Tuition Fee

-

Variable Cost

Fixed Cost/

Unit Contribution

Margin

Tuition Fee*

Break Even Unit


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FALLSUMMER


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(Tuition Fee-Variable Cost)(64853.8 41455) BDT

= 23398.8 BDT

(Fixed Cost/ Unit Contribution Margin)

(20,397,000/23398.8)

=871.71

= 872 Students

(Rounded)

(Tuition Fee* Break Even Unit)

BDT (64853.8 872)

=56,55,2514 BDT


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SUMMER


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(Tuition Fee-Variable Cost)(64861.82 44828.18)BDT

= 20033.64 BDT


(20,397,000/20003.64)

=1018.13

= 1018 Students

(Rounded)


BDT (64861.82 1018)

=66,029,333 BDT


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FALL


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(Tuition Fee-Variable Cost)

(64867.77 44124.44) BDT

= 20743.33 BDT


(20,397,000/20743.33)

=983.30

= 983 Students

(Rounded)


BDT (64868 983)

=63765244 BDT


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PRICE-QUALITY RELATIONSHIP

COMPARISON BETWEEN COMPARATIVE VALUE

SEU & DIU 4

EWU & DIU 4.33

NSU & DIU .344

DIU & MIU .250

FORMULA USED:


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QUALITY DIMENSIONS FOR PRICE-QUALITY

EVALUATION

1) PRESAGE VARIABLES: Quality of academic staffs

Quality of Students

Nature of research enterprise

2) PROCESS VARIABLES:

Amount of class contact

Peer ratings

3) SERVICE VARIABLES:

Student performance

Employability


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Universities Average quality

rating (out of 70)

List Fee (Per

semester) BDT

NSU 62 80,000

EWU 55 45,000

SEU 46 43,000

DIU 42 42,000

MIU 40 35,000

Average Quality rating of different

Universities:


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PRICING STRATEGYCOST ORIENTED APPROACH

Or

DEMAND ORIENTED APPROACH?

orCOMPETITION ORIENTED APPROACH?


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NO MOREPATIENCE !

THANK YOU!!

pricing strategy and practices

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