Product and Pricing strategies

Product/services Value delivery Not a futile extension of urban offering Rural product categories- consumer products +agro inputs +services Simple products, small and convenient packaging Product literatures simple Branding- logos , color, multi-brand strategy Spurious brands and counter strategies Social perspectives for branding Innovations Utility thru augmentation

 Pricing an imp marketing mix-1-exchange value of product/ service, 2-generating income 3-a strategic tool for positioning 4-influence other elements of mix, 5-fulfils needs of large untapped resource thru affordability 6-determinant of demand estimation Factors affecting pricing A) internal1- cost- based on large investments for promotion, packaging, distribution , credit etc e.g., choupals , shakti 2-Pricing objectives- price or non-price competition-push or pull 3- profit maximization- initially wide and deep penetration pricing with minimum returns on high turnover- recovery of variable costs, 4- Market competition- ,national and regional brands 5-Incearsing sales volumes / market shares- needs cost intensive strategies to provide economies of scale market being large . 6- needs non profit strategies with social ,developmental objectives2

 B) external1- overall supply and demand 2-Customers price sensitivity- related to personal ,social, economic and geographical factors. seasonal incomes- so micro and also macro schemes, -packaging, offers etc 3-suppliers- cash /credit schemes 4- competitors- price push unbranded/branded 5-legal environment- govt policies for inputs, tax benefits, subsidy to msme units, 6-Financial environment-,micro-finance, interest rates Pricing strategiesoccupational patterns and income levels related pricing decisions 1- optional pricing - tractors with or without trolleys/farm equipments , TV with or without stabilizers 2- captive pricing must use with main product- razor +blades, film +cells +camera, telephone instruments +line charges 3- low price points- in retail- consumer products/services 4 -Refill packs/reusable packs related pricing 5- non-sophisticated pricing 6-value ,not price based- more mileage, low maintenance, high resale value. 7- sharing services- telephones 8- bundling pricing- during festive season , shampoo+ toothpaste+

 Market entry pricing strategies1-Penetration pricing2-economy pricing- no frill3-value pricing4-coinage pricing5-Psychological pricing- more price better quality 6-flexible- strategic price discounts, allowance as powerful tool- paints 7-Free gift- cup with tea, brush with paste 8-schemes for retailers- trade promotions, cash schemes, volume rebates Discriminatory pricing1- segment pricing- for earning goodwill, women or elderly r considered for less than mrp, rural health clinics, banks 2- product form utility pricing- loose mats, beedies 3- location pricing- hats / tahsil / hubs r cheaper Understand current pricing environment in heterogeneous rural markets to determine optimal pricing strategy in accordance with rcbb and dynamic rural market environment with entities in the value chain.