By :Kunj Ambani
Grade : 12 E
MARKETING PROJECT
Kunj Ambani
ACKNOWLEDGEMENT
I would also like to express my gratitude towards my parents
for their kind co-operation and encouragement which helped
me in the completion of this project. I am also thankful to
C.B.S.E for giving me such an amazing opportunity for making
this project and giving suitable instructions and guidelines for
the project. Last but not the least, I thank my friends who
shared necessary information and useful web links for
preparing my project.
I would like to convey my heartfelt thanks to Mr. Donald Errol
Weilson , the Principal of our school.
Thanks again to all.
Kunj Ambani
It gives me immense pleasure to present the Project on a
PRICING POLICY ADOPTION BY MANUFACTURERS AND SERVICE FIRMS. It
would not have been possible without the kind support of my
teacher in charge, Mr. Ashraf Komakkal , under whose
guidance and constant supervision the project was brought to
the present state. They helped me to comprehend and memorize
important details of the project that I would have otherwise
lost.
PRICING POLICY
TOPIC ADOPTION BY
MANUFACTURERS
AND SERVICE FIRMS
TYPES OF
PRICING
POLICIES
Cost-plus pricing is a pricing
strategy where a company
adds a fixed percentage or a
COST – PLUS PRICING set amount to the cost of
producing a product or service
to determine its selling price.
PENETRATION Low initial price
PRICING POLICY to attract
customers and
build market
presence
Skimming High initial price to
pricing capture maximum
profit, then lower the
policy
price over time.
5 firms [both manufacturing and
service firms]
Apple
Samsung
Toyota Motor Corporation
Hilton Worldwide
McDonald's Corporation
Apple company overview
Industry: Technology, Consumer Electronics,
Software, and Services
Headquarters: Cupertino, California, USA
Founded: April 1, 1976
Founders: Steve Jobs, Steve Wozniak, Ronald
Wayne
CEO: Tim Cook (since 2011)
Market Capitalization: Over $2.5 trillion (as
of 2023)
Samsung
Industry: Technology, Consumer
Electronics, Semiconductors
Headquarters: Suwon, South Korea
Founded: 1969
Founders: Lee Byung-chul
CEO: Han Jong-hee (Vice Chairman &
CEO as of 2023)
Market Capitalization: Over $300
billion (as of 2023)
Toyota Motor Corporation
Industry: Automotive, Manufacturing,
Mobility Solutions
Headquarters: Toyota City, Aichi
Prefecture, Japan
Founded: August 28, 1937
Founder: Kiichiro Toyoda
CEO: Koji Sato (as of 2023)
Market Capitalization: Over $230
billion (as of 2023)
Pricing policy adopted
by APPLE company
Apple uses a premium pricing strategy,
setting high prices for its products to
reflect their quality, innovation, and
brand prestige. It offers different price
tiers within product lines (e.g., iPhone,
iPad) to cater to various customer
segments, and encourages customers to
buy multiple products within its ecosystem
(e.g., iPhone, Mac, Apple Watch) through
bundling. Apple also employs
psychological pricing (e.g., $999 instead of
$1,000) and adjusts prices regionally to
suit local markets. Additionally, Apple
uses skimming pricing for new products,
launching them at high prices and later
reducing them as newer models arrive.
Competitors of
APPLE company
Pricing policy adopted by Samsung
Samsung uses a mix of competitive
pricing (matching competitors),
penetration pricing (low prices to
gain market share), and premium
pricing (for high-end products like
Galaxy S series). They also use
product line pricing and bundling
(discounts for multiple product
purchases).
MAJOR COMPETITOR OF
SAMSUNG
Pricing policy
adopted by Toyota
motors
. Toyota uses
competitive pricing,
premium pricing for
luxury models,
penetration pricing
for new products, and
price differentiation
across trims.
MAJOR COMPETITOR
OF TOYOTA MOTORS
SIMILARITIES AND DIFFERENCSES BETWEEN COMPETITIVE
, PREMIUM AND VALUE BASED PRICING
Similarities
All three aim to maximize
profitability by setting
optimal prices based on
market conditions and
customer demand
DIFFERENCSES
Competitive Pricing: Prices are set based on
competitors’ prices.
Premium Pricing: Prices are set high to reflect
high quality or exclusivity
.\
Value-Based Pricing: Prices are set based on
customers’ perceived value of the product.
Competitive pricing
policy :
Competitive pricing is setting
prices based on competitors'
prices to stay competitive in
the market. The goal is to
match or slightly undercut
competitors while offering
similar value.
VALUE – BASED PRICING
POLICY
Value-based pricing sets
prices based on the
perceived value to
customers rather than
the cost of production. The
focus is on what customers
are willing to pay for the
benefits and features the
product offers.
4o mini
FAST MOVING CONSUMER GOODS
PACKAGES OF FAST MOVING CONSUMER
GOODS
PRICING POLICY
USED BY AMUL
PACKAGES
Amul uses a **competitive
pricing policy**, setting
prices based on market
conditions and
competitors while
offering high-quality
dairy products. They aim
to provide affordable
prices to a wide consumer
base while maintaining
value for money.
SOWT ANALYSIS OF
PREMIUM PRICING
Strengths:
High Profit Margins: Premium pricing allows
for higher profit margins per unit.
Brand Perception: Positions the product as
high-quality and exclusive, enhancing brand
image.
Targeting Affluent Customers: Appeals to
customers who value quality and
exclusivity.
Weaknesses:
Limited Market Reach: Higher prices
can limit the target market to
affluent consumers.
Price Sensitivity: In economic
downturns, premium products may
face reduced demand.
Competitive Pressure: Competitors
may offer similar products at lower
prices, attracting price-sensitive
customers.
Opportunities:
Luxury Market Growth: Increasing demand for
luxury and premium products in emerging
markets.
Brand Loyalty: Loyal customers are willing to
pay a premium for brand trust and quality.
Innovation and Differentiation: Opportunities to
justify higher prices through innovation and
unique features.
Threats:
Economic Recession: Premium products are
more vulnerable to economic downturns and
consumer spending cuts.
Imitation by Competitors: Competitors may
launch similar products at lower prices,
reducing market share.
Price Wars: Aggressive pricing strategies by
competitors can erode the premium segment’s
attractiveness.
SOWT ANALYSES OF COMPETITIVE
PRICING POLICY
Strengths:
Market Share Growth: Attracts price-sensitive
customers, increasing sales volume.
Customer Acquisition: Makes products more accessible
to a broad audience.
Clear Positioning: Establishes the brand as value-
driven.
Weaknesses:
Low Profit Margins: Results in thinner margins due
to competitive pricing.
Price Wars: Can lead to reduced profits and
instability.
Brand Perception: May harm brand image if
associated with low quality.
Opportunities:
Market Penetration: Enables expansion in new,
price-sensitive markets.
Cost Leadership: Reduces costs and improves
competitiveness through efficiency.
Bundling: Increases sales through promotions and
product bundles.
Conclusion
• Different type of pricing policy
• Pricing policy used by both manufacturing and service firms
• similarities and differences between premium , competitive
and value – based pricing policy
• packages of fast moving consumer goods and pricing policy
used by them
BIBLIOGRAPHY
www.google.com
https://www.apple.com/
https://www.samsung.com/ae
https://www.toyota-global.com
