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PRICE REALIZATION
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Published on Nov 18, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
1.
PRICE REALIZATION
MULTIPLE VERSIONS AND CREATIVE PACKAGING
Photo by
IvanClow
2.
NEWS: P&G TIDE
P&G INTRODUCES LOW PRICED BASIC TIDE
Photo by
judy_and_ed
3.
But That's Not News
News is Price of its Premium Tide Plus Went Up
4.
Side-Effect of Cheaper Version
Why did the price of Already Premium Priced Version Go Up?
5.
LET US START WITH BASICS
DEMAND CURVE TELLS US HOW MANY WILL BUY AT DIFFERENT PRICES
6.
CONSUMER SURPLUS IS
HOW MUCH WE VALUE LESS PRICE WE PAY
7.
P&G CHOSE A PRICE
CUSTOMERS WHO VALUE TIDE PLUS MORE THAN ITS PRICE BUY IT
8.
BUT LOTS DON'T BUY TIDE PLUS
THEY VALUE IT LESS THAN ITS PREMIUM PRICE
Photo by
pigstubs
9.
WHEN TIDE BASIC WAS INTRODUCED
THERE IS SECOND DEMAND CURVE
10.
THIS EXPANDS CUSTOMER BASE
THOSE WHO VALUE TIDE BASIC MORE THAN ITS PRICE BUY IT
11.
BUT PREMIUM CUSTOMERS NOW HAVE ANOTHER CHOICE
TIDE BASIC AT LOWER PRICE TEMPTS SOME
Photo by
hang_in_there
12.
SOME WILL SWITCH TO BASIC
BUT OTHERS MAY NOT SEE ENOUGH VALUE IN BASIC
Photo by
marsmet546
13.
PEOPLE SWITCH BECAUSE
LOWER PRICED VERSION OFFERS MORE VALUE THAN TIDE PLUS
Photo by
drubuntu
14.
BUT OTHERS ...
MAY NOT LIKE BASIC AT ANY PRICE
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evilsoapbox
15.
THESE ARE HIGH VALUE CUSTOMERS
THEY VALUE TIDE PLUS MORE THAT ITS CURRENT PRICE
Photo by
cameraburps
16.
THEY ARE WILLING TO PAY MORE
AND HAPPILY DO PAY HIGHER PRICE
Photo by
mynameisharsha
17.
HENCE THE P&G DECISION
18.
BUT WAIT THERE IS MORE
IT IS NOT A STRAIGHTFORWARD PRICE INCREASE
Photo by
bindermichi
19.
WHY INCREASE PRICE
WHEN YOU CAN REDUCE QUANTITY
Photo by
sldownard
20.
WHY JUST REDUCE QUANTITY
WHEN YOU CAN REDUCE NUMBER OF LOADS
21.
SAME PRICE BUT LESS PRODUCT
22.
BUT WHY THE SHENANIGANS?
BECAUSE THE PREVIOUS PRICE IS ETCHED IN OUR MINDS
Photo by
illuminaut
23.
THAT'S REFERENCE PRICE EFFECT
ANY INCREASE COULD UPSET CUSTOMERS DESPITE VALUE
Photo by
TomConger
24.
WE HARDLY REMEMBER QUANTITY AND LOADS
UNLIKE PRICE WE PAY, OUR MEMORY IS NOT LASTING
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PG.NETO
25.
THAT MY FRIEND
IS PRICING EXCELLENCE
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Tojosan
26.
Want to find your product's demand curve?
Want to find how to set price of second version?
Want to price for profit?
Talk to me @rags
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JASElabs
Rags Srinivasan
http://iterativepath.wordpress.com
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