Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • Marketing Management-2: Indian Institute of Management, Indore

    Uploaded by

    sanjusnair.rkl
    50 views4 pages
    The document is a marketing report submitted by a group of students to their professor. It discusses the pricing strategy and distribution channels of Bombay Shaving Company. Regarding pricing, it explains that BSC uses a value-based strategy, setting higher prices than competitors due to perceived quality, which helps improve margins and brand perception. For distribution, it notes that BSC initially relied on direct online sales but has since expanded to e-commerce platforms while limiting offline presence to avoid contradicting its low-cost model. The group recommends further e-commerce collaboration and limiting offline channels to reduce conflicts.

    Original Description:

    Marketing assignment

    Original Title

    7,8

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document is a marketing report submitted by a group of students to their professor. It discusses the pricing strategy and distribution channels of Bombay Shaving Company. Regarding pricing, it explains that BSC uses a value-based strategy, setting higher prices than competitors due to perceived quality, which helps improve margins and brand perception. For distribution, it notes that BSC initially relied on direct online sales but has since expanded to e-commerce platforms while limiting offline presence to avoid contradicting its low-cost model. The group recommends further e-commerce collaboration and limiting offline channels to reduce conflicts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    50 views4 pages

    Marketing Management-2: Indian Institute of Management, Indore

    Uploaded by

    sanjusnair.rkl
    The document is a marketing report submitted by a group of students to their professor. It discusses the pricing strategy and distribution channels of Bombay Shaving Company. Regarding pricing, it explains that BSC uses a value-based strategy, setting higher prices than competitors due to perceived quality, which helps improve margins and brand perception. For distribution, it notes that BSC initially relied on direct online sales but has since expanded to e-commerce platforms while limiting offline presence to avoid contradicting its low-cost model. The group recommends further e-commerce collaboration and limiting offline channels to reduce conflicts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 4

    MARKETING MANAGEMENT-2

    Indian Institute of Management, Indore

    Submitted to: Prof Sanjeev Tripathi

    Prepared By: Student from Section B, Group-15

    2022PGP235 Merul Ritesh Shah


    2022PGP553 Alisa Privol Pinto
    2022IPM020 Aman Singh
    2022PGP528 Gaurav Chaudhary
    2022PGP144 Geddada Maninkanta Babu
    Q7) How does the pricing strategy of the brand differ from its competitors?
    The different types of pricing strategies available to a brand are as follows:
    1. Cost-based pricing: Cost-based pricing is a pricing
    method that is based on the cost of production,
    manufacturing, and distribution of a product.

    2. Customer value-based pricing: It is the practice of


    setting prices according to customers' perceived value
    of a company's goods or services.

    3. Competition-based pricing: It is the pricing model


    where your price points are heavily influenced by
    those of your competitors.

    Bombay Shaving Company essentially uses value-based pricing: Consumers were led to believe that
    each new blade represented a technical development and, thus, provided a closer shave. The precision safety
    razor from BSC was more expensive than the market-leading multi-blade Gillette razor, which cost 245. The
    cost of 20 BSC blades per pack was 400, while each Gillette blade pack had six blades and cost 780. A
    detailed comparison of different brands is shown in the table below:
    Competitor Brands Pricing ( In Rs)
    Local sellers 150-300
    Ustra 250-300
    Gillette 500-600
    Peaarl Shaving 500-700
    BSC 1200-1500

    The reasons for BSC using Premium/Value-based pricing are as follows:


    i. Higher profit Premium pricing will result in higher profit margins for the company, if
    margins successful.
    ii. Improves brand Premium pricing enhances your company's reputation and brand worth. A
    perception & value high-end product not only builds its own high-quality reputation, but it also
    enhances consumer perception of the company’s product line.
    iii. Build a moat around With a properly implemented premium pricing plan, the company can quickly
    your brand solidify a competitive advantage. This can even raise barriers to entry into the
    industry. Other companies won’t be able to compete with the product unless
    boasting equivalent product quality and price points.

    The overall method of BSC Value-based Pricing can be summarized in Figure Z below:
    Q8) What are the current distribution channels and levels adopted by this brand and does it require
    any addition/deletion of the channels or levels to improve its distribution strategy?
    Bombay shaving company started with the same strategy as Dollar Shave Club (DSC), a subscription
    shaving accessories start-up that had disrupted Proctor & Gamble brand Gillette’s share of the men’s
    shaving product market in the US through viral video marketing. DSC disrupted FMCG sales and
    distribution by selling shaving razors, blades, and shaving accessories directly to consumers from its
    company website through a subscription model I.e., Direct Channel (online).

    BSC didn’t concentrate on offline stores for


    distribution. Along with its website, sales BSC
    introduced new products and extended its
    distribution channels to include Flipkart e-
    commerce platforms. The company should
    diversify its distribution across all big e-
    commerce sites. With increasing competition and
    to track consumer behaviour outside online, BSC
    started selling a few of its products in offline
    channels at supermarkets.

    Reasons to expand its distribution channels online are as follows:

    1) Collaborating with e-commerce sites is essential as the company website alone cannot provide enough
    traffic for sales.
    2) Logistic costs can be reduced by collaboration with e-commerce sites having a large network.
    3) Delivery time and customer feedback systems will be enhanced with e-commerce sites.
    4) Advertising and marketing costs can be controlled by tying up with big e-commerce sites. BSC can add
    videos and infographics directly in e-commerce ads.
    5) Helps the company in educating customers by doing product and price comparisons between BSC
    products and competitor products.

    Channel Deletion:

    BSC should avoid entering into offline channels. However few stores for customer educational purposes can
    be accepted. Reasons for limiting offline channel growth are:

    1) Selling offline will contradict with the goal of the company to save supply-chain costs and reduce the
    price.
    2) Pricing of the products should be changed in online platforms and new prices should adhere to offline
    indirect costs and their returns.
    3) By concentrating on both online and offline channels the company should keep its marketing and strategic
    decisions differently. This will result in channel conflict.
    4) Multi-channel conflict will arise during e-commerce sales because of price differences across channels.

    You might also like