Pricing

PRICING - Setting the right price is an important part of effective marketing . It is the only part of the marketing mix that generates revenue. Price is also the marketing variable that can be changed most quickly, perhaps in response to a competitor price change. 

HINDUSTAN  UNILEVER  claims  to  practice value-based  pricing in which the customers’ perception of the product’s price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups.

The price of Re 1 and 2 for Sunsilk shampoo sachets shows how the price also reflects a concern to make the purchase more convenient. Sunsilk is also available in Rs 45 and Rs 169 price bottles to cater to the demands keeping in mind the wants of this particular customer segment.

 The primary importance of this value-based pricing is that the product demand will be much higher if its price is in line with the customer’s perception of its value.

Setting price strategy of sunsilk-

The pricing strategy that UNILEVER uses is product pricing strategy in which they reduce the price of the product which is being sold more and increase the price of the product which is being sold less that is they use the demand price strategy to keep its monopoly in the market for the particular type of brand product so as they become the sole competitors in the market for that particular kind of product in the market,

 for instance they use sachets of the best selling product like the pink sunslik sachets and also cheap price for the bottles and for the various kind of size bottles present in the market. They try to use a monopoly state of market as to remain the only market player for the variety of same brand products they use and make and to be the sole market leaders. The internal factor that affects the pricing decision of sunsilk is based on marketing strategy, objectives and mix. The sunsilk Company mostly is working on the market of women’s personal care. 

Besides, sunsilk is also price maker and spends a lot of money in advertisements to convince their customers. Last but not least is the competitor’s strategies and price. The competitors of sunsilk are dove, Rejoice, Pantene, L’Oreal and so on.