DEVELOPING PRICING STRATEGIES AND PROGRAMS

Presentation by Srujan Dasari

WHEN

SHOULD A COMPANY INITIATE

A PRICE-CHANGE ?

Initiating Price Cuts

EXCESS PLANT CAPACITY

Firm needs additional Business

It cannot generate it through increased sales effort, product improvement and other measures

POSSIBLE TRAPS

Low-Quality trap

Fragile Market trap

Shallow-pockets

Trap

Price-war trap

Initiating Price Increases

Generally, Consumers PREFER SMALL INCREASES on a regular basis to SHARP INCREASE

CAUSES:

Cost Inflatio

n

Anticipatory Pric

ingOve

r D

eman

d

Delayed Quotation Pricing

Escalator Clauses

Reduction of Discounts

Unbundling

DISCLAIMER

Created by Srujan Dasari, IIT Kharagpur,

during an internship by

Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com