Pureit Pricing Strategy

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PRICING STRATEGIES OF PUREIT (A HUL Product) Pricing is one of the main elements of marketing mix because it generates turnover for an organization. Pricing strategies are keys for the companies to achieve success by finding the price point where sales and profits can be maximize. Pricing a product too high or too low can lead to loss of sales for an organization. Pricing must always reflect demand and supply relationship. Companies use variety of pricing strategies depending on their marketing goals and objectives. Generally pricing take into account factors like fixed and variable costs, company objectives, competition, positioning strategies and target group willingness to pay. Price Determination Process Decisions on price are made taking…show more content…
Product Bundle Pricing: In this strategy the company/ seller combine the several products into one package and charge for that package. The Research on Pureit (The Water-Purifier by Hindustan Unilever Limited) The Pureit is the water purifier launched in the market by Hindustan Unilever Limited. HUL is the second major player in this industry after Eureka Forbes, which tapped this marked quite early through direct sales. The third major player in the market is Kent. There exist many more players in the market. HUL started its operations in the market by selling the variants through direct sales. But working for few years they change the strategy of distribution. They revolutionize the market by rigorous advertising and adopting the channel sales and online sales of their products. HUL channel of distribution consists of modern trade, online sales and general trade. Modern Trade includes malls, supermarkets, etc. Online sale is done through Snapdeal, Amazon, Flipkart, etc. General trade includes dealers of consumer durables, utensils store, electric appliances shops, mom & pop stores,…show more content…
QPS mentioned in the table stand for quantity purchased scheme which is always monthly basis. So the targets are assigned to respectively trade on the basis of month as well as on the basis of quarter, which is decided by the company and may not be proportionate to the monthly targets. But the scheme is given to the trade partners on the basis of the fulfillment of their quarterly targets. On Offline Models, HUL provide 8% margins on the MRP to the retailers and 7% margins to the distributors on the DP with respect to the fulfillment of monthly targets. On UV and RO models, HUL provide 8% margins to the retailers on MOP and not on MRP. The company provides 5.25% margins to the distributors on the DP since the movements of these goods are relatively faster than the offline

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