Pricing Strategy of Tide

A project report on

Analysis of the Pricing Strategy adopted by Tide

Submitted to

Prof. Chinmaya Kulshrestha

by

Group 5

Chinmay Jain | 14PGHR21 |

Honey Bohare | 14PGHR27 |

Parneet Singh | 14PGHR45 |

Prachi Gera | 14PGHR46 |

Saurabh Chanana | 14PGHR54 |

Shivi Khandelwal | 14PGHR56 |

Introduction

Price is the valuation if a product or service offering. This is the amount which the customer is expected to willingly settle the exchange of the product for. It is derived at with the help of market analysis, product attributes, perceived value of the product in the minds of the customers, price of inputs, stage of the product life cycle, prices set by the competitors and many other factors which make the derivation of this value complex. Thus, pricing strategy is an important component of a brand or company’s marketing strategy and instrumental in driving sales.

The prices arrived at by this complex process should be attractive for the targeted customer segments, should be able to sustain competitive and economic challenges and most importantly drive the desired margins. However considered to be the element in the 4 P’s, pricing is a primary factor which influences the buying decision of customers and thus the total sales achieved by a product or service.

Following are some of the major pricing Strategies adopted by companies –

1) Premium Pricing: the product/service is charged higher than competitors based on the higher perceived value attached to it.

2) Penetration Pricing: the price is set on a lower side when compared to the market averages or what the production costs allow. This is done in order to create a space in the market and is revised higher when a substantial market share is captured.

3) Economy Pricing: this is a no/low overhead pricing strategy wherein the product is kept at the minimum price and not much is spent on the promotion and branding for it.

4) Price skimming: according to this strategy a company...