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Nestlé Naturnes

Price Policy Analysis


Pricing Objectives and
Pricing Policy
pricing objective range of range of
and pricing competitors
pricing policy in the retail store prices
Internal Pricing External
Factors Factors
Decision
Factors having
an impact on pricing
External factors •• Consumer
Consumerperception
perceptionof
of
price/value
price/value
•• Demand
Demandelasticity
elasticity

•• Industry
Industrystructure
structure
External
External •• Competitors’
Competitors’policies
policies
factors
factors ••Retailers’
Retailers’policies
policies
••Substitutes
Substitutes

•• Other
Otherenvironmental
environmentalfactors
factors

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pricing objectives and
pricing policy
Finding the perceived value:

Value = Benefits - Costs

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pricing objectives and
pricing policy
Benefits
Prestigious image
Quality: biological products
 no use of additives, conservatives,
thickener
 no additional sugar, salt

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pricing objectives and
pricing policy
Benefits
 Innovation: new technological procedure (every
ingredient is steamed cooked separately)
Innovative packaging
 Simple/Various recipes
Delicious

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pricing objectives and
pricing policy
Buyers perseption of price: image
• nestlé biggest nutrition company worldwide
• 100% biological products
• good for the environment (25% less CO2
emission than with other products)

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pricing objectives and
pricing policy
Buyers perseption of price: personal
benefit
• saving time and energy
-Easier and faster to
prepare a meal:

-The jars are mircrowave


able

-they are also stackable

- the jar is reclosable

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pricing objectives and
pricing policy
Buyers perception of price: benefit of service
• augmented product:
– consumer service hotline (number on the
package)
– special web side www.naturnes.com
 with chat rooms, information

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pricing objectives and
pricing policy
Buyers perception of price: Product‘s benefit
• new steamed cooking technology
 preserves vitamins, minerals of the food
• no additional chemical substances
• colors and textures of the food remain natural
• 100% biological ingredient

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Choice

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pricing objectives and
pricing policy
Costs

 Time cost
 Available everywhere: High penetration
Monetary cost
Middle range price

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Factors having
an impact on pricing
Industry structure

1.035 billion €
turnover 2007 in the
whole industry

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Factors having
Competitors policies
an impact on pricing

Retailer brands

-Low-Middle
-Market leader ranged price
- is the cheapest
- but no new inventions
-High range of products
lately
-Low quality
-Cheap

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Factors having
an impact on pricing
Internal factors
 Marketing Objective:
Market Share Leadership
 Good quality product to attack Blédina
 Prices are not as high as organic products
usually are

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Factors having
an impact on pricing
Product Distribution Communication
-Magazines for parents/
-40 different dishes - supermarket
-medical magazines
- for children from (carrefour, - posters, Internet
4 month to 1 year intermarché) -Sales promotion, POP

Price
Middle price range

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range of pricing in the
retail store
pricing objective range of range of
and pricing competitors
pricingpolicy in the retail store prices
range of pricing in the
retail store

Carrefour: 1,45 €
Marché plus: 1,45 €
Intermarché: 1,30 €
Paradis des prix : 1,44 €

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range of competitors
prices
pricing objective range of range of
and pricing competitors
pricingpolicy in the retail store prices
range of competitors prices

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Demand Elasticity
Factors having
an impact on pricing

• Nearly inelastic for the whole industry


• Elastic for Naturnes

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Factors having
an impact on pricing
Estimation of price elasticity from target
market’s buying intentions (in €)

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Factors having
an impact on pricing
Product is common;
• Quality is comparable;
• Substitute is abundant;
• Price is high;

Pri c e
s i
sen
t iv e

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Any questions?