Pricing Strategy:

New Dettol Healthy Kitchen Dish & Slab Gel's concentrated formula has been developed to effectively cut through nasty kitchen grease and dried on food, while still offering Dettol's trusted germ protection Dettol Healthy Kitchen Dish & Slab Gel Kills 100 X more germs* that can pose a risk of illness, leaving your dishes and utensils not only visibly clean but also hygienically safe. This will make sure what you cook healthy is also served healthy. The new Dettol Healthy Kitchen Gel comes in two exciting variants: Lime Splash and Lemon Fresh. These are available in 130ml, 200ml, 400ml and 750ml, priced between the range of Rs.24/- and Rs.150/-. Dettol can follow one of the below three pricing strategies or may be a combination of them.

1) Geographic Pricing: This pricing strategy focuses on two market segments divided by a transportation cost. To decide how to fix the price, Dettol have three choices:
Freight On Board FOB: It is when the company decides to price a higher

amount in an adjacent market because it requires an additional shipping fee. That's why it is cheaper for the market where the production system is settled. This happens

when the competitive price is also higher in the adjacent market. As a result the price won't penalize the profits of the company; it is in adequacy to the market trend.

Uniform delivered price: In this case, the firm settles the same price in both zones. It

is possible to balance the shipping fees between the two markets so that the company is still able to achieve its objectives. The markets share the transportation cost.

Freight absorption cost: This is the opposite of "FOB". Actually, the firm choose a higher price for the foreign market because the competitive price is settled lower than the company would choose to, if she added the transportation cost. That's why she has to put a higher price in the operating market in order to be cost-effective. It is also

known

as

"absorption"

of

the

cost.

2) Premium Pricing: Dettol dish washer is premium than its competitor Vim even though because of the following reasons: Clinically Dettol is proved better that kills the WBCs which fights the infection. Economies of scale will come into picture because of a larger parent company.

A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to skim the cream off the top of the market. It is used to maximize profit in areas where customers are happy to pay more, where there are no much substitutes for the product or when the seller cannot save on costs by producing at a high volume.

Benefits of Premium pricing for Dettol: 1. Competition: Competition tends to undercut prices and lead to poor sales. For this reason, premium pricing is often a short-term strategy. The longer a company can keep its competitive advantage, the longer it can charge a premium price. Many products start out at premium prices, but the price is cut once competitors appear on the market. 2. Brand Awareness: Brands like Dettol can continue to charge a premium price because their entire brand image is based around luxury. It is very challenging

for companies to maintain a premium-priced brand while trading as a public company. Dettol has proved to be establishing an image as good disinfectant. 3. Unique products: As Dettol dish washer provides unique protection for healthy kitchen due to following features: Kills 99.9% of invisible germs on utensils & kitchen surfaces Cleans & disinfects multiple surfaces like Dishes, Kitchen Sinks & Slabs Leaves utensils sparkling clean Dermatologic ally tested, safe on hands

3) Discounts and Allowances: Dettol has already started providing free samples from Jan 2013 at www.dettol.co.in which helps in creating the brand image for Dettol Dish Washer. Its direct competition Vim dish washer is priced at Rs. 36.(225ml) compared to Dettol price of Rs. 50 (200ml).

Discounts and Allowances are reductions to the selling price. They can be applied anywhere in the distribution channel between the manufacturer, middlemen (such as distributors, wholesalers, or retailers), and retail customer. Typically, they are used to promote sales, reduce inventory, and reward or encourage end customers.

There are several different types of discounts and allowances, as show below: Cash Discounts: Cash Discounts can be expressed in many ways, including 3/15 net 30 which means the full (net) amount is due in 30 days, but a 3% discount is available if paid within 15 days. Cash discounts can also be tied to different methods of dating, including: EOM Dating, which starts the payment clock at the end of the month; Ordinary Dating, which starts the payment clock at the date of the invoice; ROG Dating, which starts the payment clock when the buyer receives the goods; X Dating, which starts the payment clock X days after the invoice date. Trade Discounts: These are usually used by sellers to encourage non-retailcustomers in the distribution channel to perform some function, such as moving products more quickly through the channel. Trade Discounts are expressed as a percentage off the price, just as cash discounts

 Partial Payment Discounts: It is used where the seller wants to improve their liquidity/cash flow, but the buyer typically can't meet the discount deadline. By offering a discount on whatever partial payment the buyer makes, the seller gets a partial improvement to their cash position. Quantity Discounts: Sellers use the quantity discount to encourage buyers to buy more. This in turn can help the seller to reduce their own production costs, which can help reduce prices for the buyers. Examples of quantity discounts include buy five for the price of four and buy one get one free deals. Trade Allowances: Sellers use trade allowances to reward buyers for participating in promoting the sellers products. Examples of this are the instore displays you encounter in supermarkets and electronics stores, and featured ads in store advertisements.

Distribution Channel Process:

1. MANUFACTURER: Manufacturing plant is located at Mumbai in Marwa road. Manufacturer produces on a average 6000 8000 kilolitres annually for sales. After manufacturing company sends its products to S.K.U and C&F agents all over India to distribute it to the distributor.

2. S.K.U OR C&F AGENTS: It acts as moderator between distributor and manufacturer. Company itself has established their warehouse where they keep their products and then S.K.U. distributes it to the market. It provides all local help to the company. It observes the market and gives response about the demand of the distributor.

3. DISTRIBUTOR: It is the most essential link between retailer and manufacturer. They enjoy a higher level of expertise, respond more quickly and have more local knowledge than manufacturer. They also act as an advisor for the future growth of companies. They save the cost of logistics. They have experienced handling manpower. Expertise in local knowledge. DETTOL DISTRIBUTOR Name: PK

AGENCIES Profit margin is 3 -5 % Distributor work according to ACP(area chart plan) decided by company and distributor sales personnel. It is located in SADA SHIV PETH, PUNE.

4. RETAILER: It is an important link as its effectiveness will only benefit the other links above it to survive in the competitive market. It is the final link where companies effective marketing strategy will decide the demand and will make the public aware of its existing product as retailers are medium for product display. They have a profit margin of 7-8% over dettol.

5. CUSTOMERS: Finally customers can buy Dettol dish wash from these retail shops or from local grocery and medical stores.