PRICING :

         

Pricing or setting the price of a product is the one of the most important step in launching a product. Every detail is taken into consideration, the positioning of the product in the market is decided by the price it is labelled at.

There are various facts that determine the price of a product :

•        To position the product as a luxury brand or a consumer brand.
•        To establish a proof of quality.
•        Shift in the consumers attitude and his/her economic situation.

    Setting a pricing policy:

   Survival : Survival is a short term strategy, as long as the prices of all the variable cost are met and the producer can make a little profit, the survival agenda is complete.

   Maximum current profit : Companies try to fix a price that will fetch them maximum profit, cash flow and return on investment.

    Maximum market share :  In order to increase market share the companies, set minimum price possible and try to sell as much product as possible to reach the masses and attain maximum market share.

    Maximum market skimming : Company unveils a new technology, as in it brings new innovation in the existing product and increase its price and slowly drop it over time to attain maximum market share.

     Determining Demand :

  Determining demand is another important aspect of fixing price, if the company knows that its product is in demand it can very easily price its product at a higher price than its competitors and make profits.

Himalaya neem face wash places itself as a mass product, its pricing varies from Rs. 15 for the 5ml pack to Rs 155 for the 150 ml pack.

It tries to follow maximum market share strategy it sets minimum price and tries to increase its sale banking on the quality side of the promise that it makes.

Demand for Himalaya neem face wash, is high hence it plays upon the demand factor as well and make high return on investment.