Executive Summary Essay

Posted by Petra at 143 PM No comments Wednesday, January 9, 2008 9. Pricing Price is the amount of money a buyer has to sacrifice in ordination to get what he/she wants. Pampers tends to make their products available to wide range of customers, so their expense essential too be affordable, reasonable and relatively low. Ive already mentioned that Pampers makes constant improvements of the products, but also ofthe production subprogram with new technology. That makes possible lowering of the price with noback step in the products quality.P&G by and large uses the strategy of price reductions on recognized brands, cost control throught the organization, and introduction of economy-priced products worldvide. Pampers often uses price promotion mix by giving coupons and temporary discounts togenerate higher sales. Price promotion mix is generally used to reinforce the basic price mixwhich includes fixed prices and terms of payment, whereas price promotion mix representsadditional re ductions in order to tempt customer to buy. For example, Pampers coupons are given in some stores on the register when a customer buyscompetitors productsThis is a way in encouraging potential customers to join the crew and discouraging them in buying competitors products Pampers also uses non monetary promotions in order to avoid contractions in customers qualityperception and to enhance brand loyalty. Pampers must be careful with its pricing decisions be suit the demand for diapers isrelatively elastic nowadays. That means that sudden change of prices can belittle the demand in the extent that higher profits wouldnt be able of covering that.The biggest cause of this sensitive situation is the presence of competition with similar, slightly differentiated products.