Price point has always been integral to retail sales strategy. Pricing strategies are frequently reviewed by many retailers to help drive sales. Out of the various pricing strategies like premium pricing, penetration pricing and economy pricing, product bundle pricing and promotional pricing, work best especially during the end of a season and during festivals. During festivals and the season-ending period, customers look for a discount/sale, irrespective of where they shop. Retailers that do not employ the ‘SALE’ strategy during these periods are definitely going to lose customers to their competitors.
Employing pricing strategy
Banking on the lessons gleaned in the past seasons, retailers across sectors have adopted the ‘SALE’ strategy to drive growth, termed as a pricing roulette.
Currently, the sales and discount offers in major retail chains and stores, across the country, are so enticing that it has become tough for others to compete. Teen clothing and women fashion clothing store Madame tempted its customers with its season sale with a slight twist. It offered 40 per cent discount on the total purchase. The sale began in January and will continue till mid-February. The fabulous discounts can be availed by women and teens on apparels like cardigans, jackets, and accessories, etc at all exclusive brand outlets of Madame spread across the nation.
“End of season sales are no more just the promotional activities, now they are a part of the planned strategy. We are happy and delighted to announce this winter sale. We anticipate that this year’s winter sale will be bigger and better than ever before,” says
Akhil Duggar, Creative Director at Madame.
Looking at the amazing response in the past even the multi-brand fashion retail chains like The Loot, have employed the strategy of Sale. The Loot, multi brand fashion retail store has announced its exciting offer for the New Year - ‘Buy 1 Get 2 free.’ The offer hit The Loot store in January 2010.
Not just apparels, but home furnishings too are making the most of promotional pricing strategy around the upcoming Republic Day celebrations. “Big Deal! Big Gain! Masper presents the biggest shopping carnival from January to February. “Get up to 50 per cent off on home fashion products and fabrics,” said a promotional-SMS, which was sent across a couple of days ago. Bombay Dyeing, currently offers ‘Buy 1 bed sheet set get 20 per cent discount’, ‘Buy 2 bed sheet sets get 40 per cent’ discount to attract customers.
Valentine’s Day is round the corner, and retailers get a tremendous opportunity to entice consumers. This is the best time when promotional pricing strategy yield rich dividends for products targeted at youth. Nirvana Diamond jewellery has come up with Nirvana’s Valentine collection and offers up to 15 per cent off. The offer is available at Nirvana- the Diamond Store and Lifestyle stores across the country.
Currently, Standard’s Max offers 50 per cent off and other surprising special offers. Spykar, ED Hardy, Lifestyle, and Rocia too offer up to 50 per cent off. Ministry Of Fashion offers 70 per cent off. Numero Uno has the discount offer of 30 per cent to enhance the number of footfalls at the outlet. Pantaloon too is offering 50 per cent off.
Big Bazaar too has announced the 'Sabse Saste 4 Din' offer, which would have an exciting array of attractive offers, deals and discounts, to its customers. The offer is valid in over 120 Big Bazaar outlets in 70 cities across the country from January 23-26.
A recent retail discount strategy study conducted by Indiana University Kelley School of Business revealed that customers are more likely to buy goods if they see discounts mentioned in terms of dollars (or rupees) vis-à-vis percentages. The study also mentioned that customers tend to make purchases more when stores communicate discounts in an easy and instantly computable manner.
On the other hand, offering price comparisons and discounts in rupees does not suit the speciality store as it projects the grocery-storish image. It may have an impact on the brand. The speciality retailers prefer offering percentage discount.
Looking at the discount offers splashed all over the place this season-end, it is apparent that the ‘SALE’ strategy works wonders and is here to stay!