Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
A new company by name Electrolux has entered the market which has acquired Allwyn, Kelvinator and Voltas brand.
Researchers have revealed that urban and city sales are declining and hence all manufacturers are trying to concentrate on rural markets.
Electrolux strategy is customisation of market, with special attention to the Northern and Southern India markets, while Godrej the main player thinks that dealer network in rural market for sales and service will be beneficial and is trying to give more emphasis on dealer network, whereas Whirlpool has adopted the strategy of increasing the dealer network by 30%.
The market shares of the major players are as follows:
• Godrej 30%
• Videocon 13%
• Kelvinator 12%
• Allwyn 10% • Voltas 5%
• Whirlpool 27%
• Daewoo 1%
• L.G 1%
• Others 1%
Could the refrigerator market be segmented on geographical base planned by Electrolux?
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