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An Analysis of Pricing strategies
of
and in telecom sector
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7 PS
Product
Price
Place Promotion
People
Physical evidence
Process
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Create value
Value = Quality / Price
Quality is highly subjective and is difficult to measure
Price is measurable If a company can balance this equation:
Whatqualityat whatprice
Then a company can create a value proposition
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Make it Affordable
Price Cost Affordable
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Core Values
Quality
Service
Cleanliness
Value
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The Products
CoreMenu
Happy PriceMenu
ValueMeals HappyMeals
Beverages
Desserts
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Our clear Strategy is to bring the customers ininitially and provide a range of entry level productsso that they can try new items and
graduate to the higher rungs
Vikram bakshi,MD
Northern Region,India
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Advertising
Focus on overall experience.
Brand globally and act locally.
Overall it is doing what it does the best marketing. Intensive advertising aimed atchildren.
Paper mats on trays ensure that no new scheme goes unnoticed. 80-20 menu boards
marketing tool. Sponsors sport events with their logos advertised in these events. Significant use of
billboards and signage.
Image of portraying warmth and a real slice of everyday life has become a trademarkand has created many memorable commercials.
Campaigns
aap ke zamaane mein baap ke zamaane ke daam is a highly localized campaign whichaimed at attracting the masses through its happy price menu.
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Pricing
A very popular punch line ofMcDonalds Aap ke
zamane mein, baap ke zamane ke daam
Happy PriceMenu
Purchaisng power strategy
Value based pricing strategies
Happy PriceMenu Rs. 20
ValueMeals
Low cost supply chain
Competitive pricing
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Pricing Strategy
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Market share
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CURRENT STRATEGIES BY MARUTI
Pricing strategy - catering to all segments
Offering one stop shop to customers
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Pricing strategy
Pricing Objective :- Market share &
Cost Leadership
PricingMethod :- Markup Pricing (cost plus pricing )
Pricing strategy :- Economical Pricing
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Pricing Strategy
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The Success
Term isEDLP
EVERY DAY LOW PRICING
To provide customers a wide variety of high
quality, branded and unbranded products at
the lowest possible price, offering better value
for their money
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EDLP : The strategy
To procure products in bulk at the lowest possible
prices from the manufacturers
Sharing the savings with customers
Wal-Marts products were usually priced 20%
lower than its competitors
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Explaining his pricing strategy
Mr. Sam Walton said:
By cutting your price, you can boost your sales to a
point where you earn far more at the cheaper retail
price than you would have by selling the item at the
higher price. In retailer language; you can lower your
markup but earn more because of the increased
volume
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EDLP : WAS A HIT
This led to increase loyalty from price-consciouscustomers.
The surplus generated was re-invested in
- Building facilities of an efficient scale
- Purchasing modern business related equipment
- And employing the latest technology
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Telecom sector
Every telecom company aims for two things
Create a sustainable network subscription base Maximize ARPU
(Average Revenue per user)
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While the mobile telephony space has always had
intense price competition, the launch ofTata
DoCoMos services on the global system for mobile
communications technology standard has caused asignificant disruption in the pricing strategy of the
industry.
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Telecom analysts point out in a note that the per
second billing plan may be able to attract and retain
low-end marginal subscribers better than the free
minute schemes.
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Average call duration (of) between one and three
minutes, It is estimated a bill reduction of 17-50%
depending upon the distribution of call duration.
Subscribers with the maximum frequency of
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Strategy
Competitive pricing
Guerilla warefare
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GroupMembers
Mayur Ginglani
Kanushree Khurana
Ajitesh Raina Kritika Sabharwal
Kaushambi
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T
hank you