Question

which pricing strategies does the Tide detergent company uses?

Answer 1

Introduction

Pricing strategy is an important consideration for Micro economic companies looking to gain market share and add to the brand value of the company.

In real time, companies fail micro economically not because they are selling products which are not accepted by the consumers, but rather the fact, that these products are priced badly.

For the purpose of this case study, we are analyzing how the company Tide deals with its pricing issues thus maintaining a smooth relationship between demand and supply respectively.

Tide is one of the leading brands and is owned by P&G (The Proctor and Gamble Company) which is an American Multinational operating all across the globe respectively.

The products that are sold by the company include liquids, powders, stain removers, Laundry Boosters etc. The packaging of the product is very attractive and it is one of the most sold products across Asian and American markets respectively.

Pricing Strategy Specifics

The pricing strategy is a very important consideration as explained. For Tide the pricing strategy considers matching perceptions of a superior product while making sure that the product is not priced higher than the best in the market place.

This type of pricing strategy is known as Market Follower Pricing. It rapidly changes the pricing when compared to its competitors so as to have the same image in the mind of the consumers.

The product is largely built on the concept of being better than the average product but still not being expensive. Therefore one will always finds products which are more expensive than tide, while tide offers a similar offering in terms of quality thus making it stand out in the customers mind.

On the other hand the pricing and product quality being higher than the average products also makes a clear image in the minds of the consumers respectively.

Thus, it must be highlighted that the company follows a market based following pricing strategy in which it carefully analyses the differences in pricing of competitors and sets a price accordingly.

Please feel free to ask your doubts in the comments section.