Pricing Strategy of HUL

Pricing is a very powerful tool in the marketing, company use the pricing in the different way to achieve marketing objectives. Pricing strategy adopted over the medium to long term to achieve marketing objectives. Pricing strategy has a significant impact on marketing strategy.HUL is a market leader in Indian consumer products they are producing the  brands personal care, homecare and food and beverages, many variety of products they are producing with a reasonable prices .HUL adopted pricing strategy to improve their conditions.

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           Simple pricing policy of low cost products-  Hindustan uniliver mainly believes in their products they are producing the consumer friendly products so it increase huge amount of sales so they decided to kept a simple pricing policy of low cost product for example sun silk sachets at Rs 1 like that, so that product rich a wider market. But they have not compromised with quality of products but they are cut down the cost of the products because of its extensive and long way reaching of distribution policy.

·         Competitive pricing policy- HUL has maintained competitive pricing policy for some of its products. Competitive pricing policy is setting the price of the product based on competition of that particular products, this policy is used when a two company produce the similar kind of products. As soon as increase or decrease in the competition of the product, price is charged on the base of competition.

·            Offers Brand- HUL is an a wide consumer goods producer , so it try to offer many brand with variety of products at  numerous price .for example their personal care brand , home care and food and beverage brands offers different verity of products. So it will help consumer to buy any one of product according to his or her own financial capability.

·             Discount Offer- Now a day’s consumer are give the more importance to discount before purchasing any product they first see where discount is available. In HUL tries to maintained balance of the market in the name of discount, they offer discount for their products, for example 200gm of surf excel free with one kg of that products. So it automatically reduced price of the product and consumer are eager to buy the product at discount rate so sale will increase.

·         All income groups of people- HUL adopted pricing strategy it is suitable to all income group of people like high income, low and medium income group of people, for example low income group of people like rural people hul producing small unit of product like small lifebuoy soap at RS 5 like that.

·         Offers Volume point to Price point Packages-  Rural consumer are price sensitive and they expect value for money, if they buy any product they expect satisfaction from that product. Mainly rural customer are purchasing the small unit of product because for their income level or family condition. So HUL offers small quantity of products with a reasonable price so it attracts the rural consumer towards products. They are purchasing the small unit of product but they are regular customer of those products.

·         Create markets for premium products- premium pricing strategy is a setting price of the products higher than the similar products. It increase the maximum profit in are where the consumer are happy to pay higher prices, HUL created market for a premium product .for urban people HUL decided to produce huge unit of product at a high price because they are able to pay more  for their satisfaction. For the purpose of rural consumer it offering sachets so they can purchase what they want at reasonable prices. For example lux soap at Rs 5 and ponds gold cream at Rs 5 etc.