Question

Marketing Programs to Build Brand Equity

Choose a product category. Profile two to three brands in the category in terms of pricing strategies and perceived value.

If possible, review the brands' pricing histories.

Have these brands set and adjusted prices properly?

What would you do differently?

Answer 1

Firstly we should know why it is important to classify the products?

To expand the business in the best way possible and execute a proper market strategy to gain maximize.

Now there are major categories as:-

1.Shopping products like fabrics, clothing, furniture, etc.

2. Speciality products like BMW, Amway etc

3.Unsought products like fire extinguisher, encyclopedia etc.

4. Convience product like hair brush etc.

Now I had choosen Shopping product and would discuss 2 of its brand briefly:-

MYNTRA

Myntra is a online clothing brand. It is a tough competitor in the market. It has focused on competitive pricing. Undoubtedly it sells branded products and a wide range of products with heavy discount. It also offers Festive sales from time to time which attracts a number of consumer.

Now if we discuss about its price strategy-

Myntra processes 20,000 to 25,000 orders from over 450 cities. The pricing of in-house labels is done competitively, still having a discount for its customers. Mytra Original Brand give a margin of 60% to the company. It follows the Principle of P's that is price, product, place and promotion.

Mytra is planning tu cuts discount in the coming time. And plans to focus on try and buy campaign. The average selling price is lower. It is planning to launch a new sales events in April based on high fashion but at full price products.

AMAZON

Another e- commerce brand known for providing various variety of products from clothing, handbag, shoes of brands.

The price strategy of Amazon is very wise. It is found that Amazon performs well calculated pricing strategies for different products.

Depending upon the choice of customers they categorize them accordingly with the ranging price list. They focuses more on the popular products.

They follow the rule of price optimization. They measure the relation between quantity and demand of its customers and then target or set their prices. However, Amazon is quite expensive in comparison to other competitors. It had built atrong price perception to deal in the future. They calculate thier floor price. More than 70% of sales on Amazon happens on page of organic search.They keep price stability. They offer 50% discount to their regular customers which is recorded in their list. However some percent is also given to other customers. They have certain discount strategies as per their customers demand.

These brands have set their price according to their norms and customer demand. These brands have proved to be successful with the proper price strategies.

They can expand their business with proper strategy and should not exceed its margin so that the level of customers may not fall. They can focus on plans to attract more customers. Price comparison causes website traffics. The most simllest way is the cost based pricing. In this the costof the product is defined with the target margin. It should not be too high.