Which pricing strategy should be adopted for FMCG products?
Table of Contents
- 1 Which pricing strategy should be adopted for FMCG products?
- 2 Is FMCG price sensitive?
- 3 How do you market for FMCG products?
- 4 What are the major factors that influence the FMCG pricing strategies?
- 5 What is the pricing strategy of FMCG?
- 6 How important is innovation in the CPG / FMCG industry?
- 7 What are the characteristics of FCMG products?
Which pricing strategy should be adopted for FMCG products?
‘Competitive Pricing’ is an essential cog of a product positioning and branding strategy and has a long-lasting impact on customer loyalty and consumer engagement.
Is FMCG price sensitive?
The FMCG customer is more price sensitive, while a consumer electronics customer is ready to pay more for the promise of better quality/brand value.” In the case of FMCG segment, price promotions are used to induce repeat purchase of the same brand.”
How a new product is priced?
Penetration and skimming are two strategies which play a crucial role in deciding the price of a new product. When a new product is launched in the market, first and foremost it needs to meet and exceed the expectations of customers and then compete with other brands available in the market.
How do you market for FMCG products?
The top 5 keys to successful FMCG digital marketing
- Reflect your brand in every digital channel. The brand website, social media channels, content and messaging should reflect the brand.
- Know your target audience.
- Content marketing matters.
- Build an army of influencers.
- Form a direct relationship with the customer.
What are the major factors that influence the FMCG pricing strategies?
9 Factors Influencing Pricing Decisions of a Company
- Price-quality relationship:
- Product line pricing:
- Explicability:
- Competition:
- Negotiating margins:
- Effect on distributors and retailers:
- Political factors:
- Earning very high profits:
Does Unilever have pricing power?
Pricing power drives top line growth at Unilever.
What is the pricing strategy of FMCG?
FMCG pricing strategy is based on “last” generation supermarketing retailing The first area ripe for FMCG pricing strategy transformation is existing FMCG channel strategy and go to market process.
How important is innovation in the CPG / FMCG industry?
In CPG / FMCG, innovation is crucial for many brands. It is quite common that 20-30\% of all products sold are recently launched. Companies spend many millions in launch marketing and advertising across multiple channels.
What is the history of FMCG industry in India?
After 1991, the FMCG industry was inspired by international companies which also allowed government intervention to incentivize foreign FMCG companies to operate in India. The economic reforms of 1991 not only brought a higher number of domestic choices but also imported products.
What are the characteristics of FCMG products?
From the P.O.V of the consumer, an FCMG product has these characteristics – Frequent purchases, low effort to choose the item (pre-decided), low prices, short shelf life (means it gets bought quickly), rapid consumption.