What is new product pricing?

Pricing strategies tend to change as a product goes through its product life cycle. This is called New Product Pricing. When companies bring out a new product, they face the challenge of setting prices for the very first time.

What are the pricing strategies followed by consumer goods companies?

These are the four basic strategies, variations of which are used in the industry. Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item.

How do I market my FMCG products?

Top 7 FMCG Digital Marketing Strategies in India

1. Customer-Centric Content Marketing:
2. Creating presence with social media.
3. User-generated content.
4. Increasing appeal through Influencer Marketing:
5. Automated Email Marketing.
6. Hosting in-house eCommerce Store.
7. Online Reputation Management.

What is an example of product pricing?

Here’s a simple value-based pricing example. You take a small child to a petting zoo, and she wants to feed the goats. You put a quarter in the goat food dispenser. From a pricing perspective, there is the cost of the goat food — about two cents.

What is the best pricing method?

1. Price skimming. When you use a price skimming strategy, you’re launching a new product or service at a high price point, before gradually lowering your prices over time. This is a great way to attract consumers—especially high-income shoppers—who consider themselves early adopters or trendsetters.

What are the pricing methods used in FMCG?

The main pricing methods used in the FMCG sector are: variable costs per unit plus the marginal contribution of unit, popular price points, positioning; break-even point analysis is also applied, grid pricing, promotional pricing (Kotler, 2011).

Why is there so much discounting in FMCG?

Excessive discounting across all retail formats, whether in FMCG or general merchandise, is heightening consumer price sensitivity and decreasing baseline sales. In this new retailing model, prices and price architecture need to be better developed so that it can flex with the new market reality.

Which is the best way to promote an FMCG brand?

As an FMCG brand, you’re often reliant on stores to push your products in the right way, so offering stores an incentive to sell more can be a great way to get your product prioritised over others in your category.

Who are fast moving consumer goods ( FMCG ) definition?

Gordon is a Chartered Market Technician (CMT). He is also a member of ASTD, ISPI, STC, and MTA. What Are Fast-Moving Consumer Goods (FMCG)?