PRICE AND PRICING: In general the price is the payment or benefit between two parties in exchange of goods or services. Pricing is a process where the business set up a price or amount for selling or exchanging their goods or services to consumers. The pricing of any company or a business mainly depends on many internal and external factors like manufacturing cost, quality of product, competitors, market position and the brand image of an product. The pricing is the one of the part of four p’s where the company gets the revenue. The profits of any company depend on pricing this can be approached by three different ways like industrial, market and the transaction level.
There are many steps involved in the price setting like select the price object, resolve demand, estimate the cost, analyze the price mix, select the pricing strategy and finally select the final price.
FACTORS TO DETERMINE THE PRICING STRATEGIES:
The price of the product should not have much variations from other competing company’s ,always the price should be average so that many people will be attracted to buy it, and the price should not be too high from the competitors so that the consumers will not show interest on it.
PUBLIC DEAMND OR BRAND:
The price of an product should always based on the public demand and the brand value, based on these factors the price may increase or decrease.it also depends on the company revenue.
also depends on strategy’s like high end , middle and cost based.
PRICING STRATEGIES OF THE DAN MURPHY’S:
Dan murphy’s is one of the Australian liquor market established in 1952 and owned by the Woolworths with an around 200 stores in the Australia. This is the biggest and best liquor super market of Australia which sells the liquor at too low price than any other market in Australia.
The Woolworths also has other small stores like BWS and other and this competes mainly with liquor land , first choice and IGA liquor.
When compared to all the competitors like BWS, IGA, liquor land and first choice the Dan murphy’s provide liquor with low price at all the times.
They have a team which works on the prices of liquor every day to make the prices available low when compared to any other market in the Australia.
The main motto of the Dan murphy’s is “we do not match the prices with others we beat them’’.
They are succeeding in this since many years this is mainly due to their pricing strategies. The main strategy is daily evening the team pricing team of an Dan murphy’s starts comparing its prices with all its competitors and make sure to make the prices low , If they find and product with matching price they make their product low compared to that matching one.
Dan murphy’s declares that they are lowest price liquor sellers in the Australia and and announces that if any found the products with price less than Dan murphy’s they are allowed to accept it and give them less than that price.
Because of their successful maintenance of lowest prices all the time the Dan murphy’s has gained a lot of customers when compared to their competitors.
Maintaining the promotions all the time with lowest prices made Dan murphy’s stand top.
With the maintenance of huge stock, lowest prices, with biggest online market and well know ledged employees made the Dan murphy’s win the Roy Morgan customer satisfaction award.at present Dan murphy’s has biggest and best online market with around two million customers in the online market , which made the profits increased for the company.
The Roy Morgan research also announced that the 26 percent of the liquor buyers of Australia are buying in the Dan murphy’s which is high differentiated with their competitors likes BWS which has around 18 percent of share.
By making the products available at low rates consistently since the years made the Dan murphy’s stand at best position in the market and it also proved their slogan lowest liquor rate guarantee.
lacobucci, D. (2013). MM4. Mason, Oh. South-Western College Publishing.
Roy Morgan. (2016). Dan Murphy’s (and Woolworths) blitzing the Aussie liquor market. [Online] Available at: http://www.roymorgan.com/findings/6552-dan-murphys-woolworths-blitzing-aussie-liquor-market-201511152333.
chaitanya reddy manda