Rus News Journal

Let`s sell how much

the Price - one of major factors on which the marketing system is under construction. The challenge in pricing - to define the price for a new product or a brand that these goods not only were on sale, but also made the maximum profit.

from all elements of a complex of marketing (marketing mix - a product, the price, sales, advancement) the price is the most important. As the senior adviser of company BKG Profit Technology tells Rimma Chajnikova, “ in the West have counted up that on size of demand the price renders ten times a greater influence, than advertising. I think, it is actual and for Russia “.

the Price is an and most flexible tool, it can be changed for one day. Nevertheless, if to deduce on the market the new goods or a brand, it is better to hit the nail at once, instead of to rush about from one strategy to another.

There are some approaches to price definition. In classical, an economic variant the company first of all starts with own expenses. She counts the goods cost price, considers all kinds of costs and, at last, puts certain rate of return. But in present conditions it is impossible to name this approach optimum. Elena Mihajlova, the senior lecturer of chair of marketing of the State university of management of a name of Ordzhonikidze (GUU):“ In many companies in a product, its advancement and sale experts in marketing usually are engaged, and the price why - that is counted by experts of economic department. But when the consumer comes to shop or on the market, to it all the same, what costs at the company. It is guided by benefits which to it are given by these goods. So more correctly to involve in pricing not only planners, but also experts in marketing ”.

the Marketing approach to definition of the price is much more difficult. It is based not only on the analysis of own expenses, but also considers such inconsistent enough information, as opinion of consumers, and also force of a competition. However finally this approach allows to avoid overstocking and gives the chance to the company to hold the prices at a maximum level.

Necessary conditions
According to experts to establish the correct price for the new goods, it is necessary to have a special gut feeling. But, certainly, it insufficiently - it is necessary to conduct detailed researches of the market.

In - the first, it is necessary to define the purpose: the company wants to achieve that, deducing on the market the new goods or a brand (to increase the share in the market to maximise profit and etc.) . Depending on it all other decisions influencing pricing will be made.

In - the second, the company should solve, who will buy a product. Proceeding from it it is defined, what price segment will occupy the given goods - cheap, average or expensive. These conclusions narrow at once price frameworks.

the Third step - to analyse all factors which influence pricing: own costs, competition level, type of the market and its sensitivity to change of the price and etc. In particular, such factor as price elasticity, shows how demand depending on increase or price fall will change.

Then the company in details develops the general price policy and strategy and defines the game rules in the field of the prices - and at last chooses a pricing method.

Methods of research of the price
For finding-out “ Correct “ the company prices conduct preliminary marketing researches, using thus a number of techniques. So, by means of method PSM (Price sensitivity metre) it is possible to measure price sensitivity of consumers. According to the head of department of data processing of the company “ GfK Russia “ Ashata Kutlalieva, he enough simple also allows to be defined with a corridor of the admissible prices for the new goods. To the potential consumer set only four questions - he should name itself the price at which the given purchase will be for it the expensive, expensive, successful and suspiciously cheap. On the basis of these answers curves are under construction, and on their crossing four important points are formed.

Crossing of lines “ too cheaply “ and “ expensively “ forms a point of limiting cheapness of a product. It means that at lower price the share of the buyers doubting quality of a product, starts to increase promptly. The point of extreme dearness lies on crossing of curves “ too expensive “ and “ successful purchase “. At higher price many buyers will start to refuse purchase. There, where curves “ expensively “ and “ successful purchase “ there is a so-called point of indifference. It is the price as which the majority of consumers do not consider neither high, nor low, it it is indifferent. At last, there is a point of the optimum price - where opinions " are crossed; too expensive “ and “ suspiciously cheaply “. At this level of the price the product will reject least people. Certainly, any company completely is not necessary on results of poll of consumers, it only a reference point for a possible range of the prices.

There is also other method - BPTO (Brand price trade - off) which allows to compare the new goods to available analogues of competitors. To the respondent offer some marks of the goods (to ten) at determined price and ask to make a choice. Then the price of the chosen product raises, we will tell on one rouble, and the person again ask to choose. On an exit the certain parity between marks and the optimum price for a new product turns out.

the Most simple method is called “ the Ladder of the prices “ (Price ladder). Actually at the consumer “ in a forehead “ ask, with what share of probability he will buy the given product at the concrete price, and then gradually this price raise or lower. Ashat Kutlaliev: “ this method, however, as well as at a number of others, has an essential lack: The consumer guesses that the price will raise or lower, expects it and joins in game. Therefore it is better to use it in addition to other techniques “.

Correct orientation
Experts allocate three basic methods of pricing. The first is focused on costs, that is considers only interests of the manufacturer. But Elena Mihajlova considers that “ this method works only in very stable markets where it is possible to predict accurately the future sales volume “. The second - orientation to the consumer. Here the key factor is the perception the buyer of value of a product. As tells Rimma Chajnikova, “ the consumer buys not meat, and taste of a beefsteak “. In this case the company should study in details preferences of consumers and build the prices depending on target audience characteristics. The third method - orientation to competitors. At it it is necessary to consider, how many in the market of competitors, whether they let out the similar goods and at what price they sell it. The company can put the price at level of competitors, above or more low.

the Most simple variant of orientation to other players of the market - to put the same price as at the nearest competitor, and to copy its further actions in the field of a price policy. Most likely, such approach will help to be kept in the market, but errors are not excluded also: probably, at the competitor absolutely other level of costs and safety factor. Rimma Chajnikova: “That mark which takes in the category the first places on recognition, pays back marketing expenses. And all the subsequent demand much bigger expenses. Therefore following strategy for the leader is not always defensible”.

The the goods are more unique, the be more flexible the approach to an establishment of its price can. For example, probably to apply other strategy and to appoint higher price, than at competitors. we Will tell, company Intel so establishes the prices for the new processors. And in the Russian market the first cellular telephones with connection were on sale on $5 thousand Calculation here is under construction that always there will be a certain percent of consumers which willingly will buy a novelty. While competitors will start own analogues, the company will have time to skim the cream off. Many experts in marketing and name this strategy - “ removal of cream “ though madam Mihajlova from GUU against such term objects and considers that it concerns exclusively strategy of company DuPont which the first has started to let out in due time essentially new production and could establish on it the high price. If a product difficult, and the technology of mass production is not debugged yet dearness helps to avoid turns of consumers. Besides, this tactics gives the chance to reduce the prices then.

However the price for the new goods cannot be put on zaoblachno high level. According to the head of department of data processing of the company “ GfK Russia “ Ashata Kutlalieva, the price should be reasonable and be established as a result of special researches. _ & _

One more variant - when the prices are established obviously more low, than at competitors. For example, idea of sale of complete sets “ Bi + “ in boxes at the low prices has given the chance to the company “ Vympelcom “ to involve a great number of subscribers. Similar strategy approaches and for articles of food of mass demand. Mister Kutlaliev, " However, speaks; such approach is useless to use in one separately taken shop, the goods should be presented in the majority of shops “. Thus there is a question of control of retail prices, but it is already special problem.

penetration Strategy on the market by means of the low prices allows to expand demand for the production, after all the majority of consumers are not loyal and are easily switched to new marks. If the goods anything especially do not differ from the others with bolshej probability will buy that, the price on which more low. However here there are also reefs. Elena Mihajlova: “If in the ratio the price-quality for consumers first of all is important the price the given strategy will work. If it quality they will not react in any way to the low price is essentially more important. For example, at purchase of the goods of long using (home appliances, furniture, cars and etc.) We first of all are guided by quality, and the low price can frighten off only the buyer ”.

Other minus of this strategy - if the company will want to rise in the price, there is a probability that the market of it will not allow it, consumers will refuse to pay higher price. At last, great demand can do much harm too. For example, when company Wilkinson making shaving edges, has entered the market of the USA with the low prices, it could not execute vsepostupivshie orders.

the Cocktail from shrimps
Use only one method at a price establishment meets infrequently. Elena Mihajlova asserts that the complex approach is necessary:“ If the new product possesses any essentially new characteristics the sequence of use of methods can be such: at first orientation to costs, then - on consumers and at last - on competitors. And if in the market there are analogues then it is necessary to make on the contrary: competitors, consumers and then costs. This sequence is very important ”.

So, a group of companies “ Ledovo “ at a conclusion to the market of a new product is guided by costs and the consumer (competitors while simply do not let out a similar product).

“ Ledovo “ - one of the Russian leaders on manufacture of fish delicacies. Smoked shrimps under mark " soon at retail will arrive; Salmon “. The brand exists for a long time already, however, as the president " speaks; Ledovo “ Bolotov`s Hope, earlier the company did not build rigidly the price policy:“ Till 2000 we were guided by the market more. The market has gone upwards at the price - we too rose in the price. The market has gone downwards - we too have fallen. Any balanced strategy was not ”. But the situation has started to change. Now in the company consider that the price should not depend only on the cost price of a product, an exchange rate difference of currencies at purchase of raw materials and etc. It should combine in herself some factors, including value of a product and opinion of consumers. This policy has started to be realised at a conclusion of the new goods.

the Idea was born casually. “ we participated in exhibitions, beer festivals, and for us always was a problem to offer the consumer to try shrimps. They after all frozen, and it would be desirable, that they could be eaten at once. There was a thought to make shrimps smoked “ - Bolotov`s Hope tells. Four months experts have spent for technology working out. The new product can be used at once, and also to store at temperature - 18 ° S

the New product it will be positioned in a class “ a premium “. As analogues in the market while are not present, the company has put in the price its cost price, the expenses on technology plus has added the award which includes a payment for value of a product and economic profit. The rate of return is calculated by economists so that means for enterprise development sufficed. 330 roubles as a result have turned out. Proceeding from available experience, the company understood that in retail the price will rise at least on 50 - 100 % and will reach 500 roubles. “ knowing the Moscow shops, I can assume that the price will be such, and even it is more. For example, on a frozen shrimp ` Salmon ` cost price - from 80 roubles for kg, and in retail networks - 130 - 170 roubles “ - Bolotov`s Hope speaks.

This situation has forced the company to address to consumers. Individual poll about hundred men of means - potential buyers of smoked shrimps has been spent. In “ Ledovo “ consider that in their case of such small sample was quite enough. It has appeared that the price 500 - 600 roubles of consumers does not frighten, and they are ready to buy a new product. Is ready to take a new product and retail. But how much company expectations will justify, will show time.

Dr. Klaus against mosquitoes
If the let out product is not essentially new, and the competition in the market big the manufacturer should look back at the prices of other participants and to consider wishes of consumers. Here, for example, as the company " built the price strategy; Rusinhim “.

This firm plans to deduce in May on the market new brand Dr. Klaus, means from mosquitoes. Work on mark creation has begun one year ago, researches of the market for definition of the key indicators one of which, according to the director for marketing Irinas Sevrjukovoj, is the price have been conducted: “At a stage of the primary researches spent for us brendingovym by agency Brand Lab, it was found out that buyers prefer qualitative marks, not especially paying attention to the price. But long games with the price - an inadmissible thing in our market. Sharply expressed seasonal prevalence and its small duration - - simply do not allow to make two months it. If you will put the wrong price feedback will arrive approximately in a month, and the season of sales will come to an end in the meantime”.

When there was a question on cost price definition, the company has started to build reference points. The top limit of the price is, naturally, a level of demand, bottom - production cost price. The prices of competitors are where - that between etThem borders. “ we chose such price which would allow to maximise current profits, - Irina Sevrjukova speaks. - It is a question not of momentary financial success, and about use of the alternative prices when are estimated both demand, and costs, and the price provides the highest levels there have arrived also norms of return of investments. We understood that such approach is combined enough, as demands good orientation in dynamics of demand and costs “.

to answer a question “ What optimum price for the new goods? “ agency Brand Lab has ordered special marketing researches. Irina Sevrjukova: “Originally we had to spend sensitivity measurement to the price (PSM). This method possesses important advantages before others, in a case if the product is new in the market, little-known or simply demands an estimation. In - the first, the respondent can name the price, without using in advance stipulated scale, and in - the second, it is possible easily and to make quickly the questionnaire, to supervise and analyze results ”. The company has found out, for example, that on such goods as plates from mosquitoes, for the consumer is of great importance if its cost price is less than 25 roubles, and in an interval from 22 to 25 roubles of a difference for it practically is not present. As a result “ Rusinhim “ could raise cost price: 22 roubles were planned, and after carrying out of researches became 24.

But why in that case not 25 roubles? In “ Rusinhime “ explain that “ a tolerance interval “ 22 - 25 roubles has been defined in the Moscow market, and in regions it has turned out a bit different - not three roubles, and rouble - two. Increase of cost price of 2 roubles already essentially increases profit, and at the same time this sum will not frighten off neither the Moscow consumers, nor buyers in regions.