SUSTAINABLE MARKETING ASSIGNMENT – VIII

RAVI PRASANTH SIVASWAMY

SUSTAINABLE PRICING PRACTICES

Criteria Fairtrade Minimum Recommended Maximum Retail Price

Price Retail Price (Europe) (India)
1. Definition It is the minimum price It is the price at It is the manufacturer
which has to paid for which the calculated price that is
certain agricultural manufacturer the highest that can be
products imported recommends the charged for a product
from developing retailer to sell the
countries. This is to product to end
ensure that producers consumer.
get a sufficient quality
of living.
2. Level of Obligation It is enforceable. It is just It is enforceable. The
If the market price is recommendation. product should in no
higher than the fair Not enforceable and way be sold higher
trade minimum price, hence many sellers than the MRP
then a Atleast the choose to sell below
market price should be the RRP
paid. If market price is
less than the fair trade
minimum price, then
fair trade minimum
price should be paid
3. Product Scope Agricultural produces Predominantly for Predominantly for
and certain retail product retail product
commodities which categories categories
comes under
1 Small Producers
Organisation
2 Contract Production
3 Human Labor
4. Paid By Importers from End consumer End consumer
developed countries
5. Objective The importers from This was launched This was brought into
developed countries with the aim to place in order to
did not want to buy the ensure uniform price prevent tax evasion
product at market price across different and protect consumers
if it was too low to geographies and from profiteering by
provide sufficient outlets retailers. The other aim
quality of living to the was also to have
producers. Thus they uniform prices in both
came up with this urban and rural regions
 minimum guaranteed where transportation
price charges were high

Criteria

1. Definition
2. Social Benefits
3. Environmental
Benefits
4. Limitations
5. Examples