Pricing Strategy of Nestle Pakistan and Faw Motors

Nestle Pure Life Pricing Strategy

How many products do offer by your organisation in Pakistan?

Ans: According to the company representative the company almost deals in 88 % of its total products in Pakistan.

How pricing was set in your organisation?

Ans: Firstly, the taxes were finalised with the government by the legal advisers of the company with coordination with the government officials then the next step was the pricing was finalised.

How did you fix your price for different segments?

Ans: Nestle deals different customers with different pricing strategies known as discount, which is engaging the corporate customers. Another one is retail which we say general trade we offer them different type of discounts another one is key accounts.

Basically, we further channelised, and our categorisation were there. We deal according to their nature of business in which they deal every channel. These are as follows;

  1. Key accounts
  2. Wholesale
  3. General trade
  4. Food services
What were your daily routine tasks?

Ans: Daily routine tasks are as follows:

  • Ensure the products availability in the key accounts.
  • See the service levels are up to the mark or not for the customers.
  • Ensure that the discount that would offer to the customer are they reach to them are not.
  • Conduct meeting with the teams and to motivate them.
Pricing Strategy of Faw Motors Pakistan

Interview Setting: Interview conducted in Sales Office of FAW Rawalpindi Motors.

Interviewer: How you set the pricing of your products?

Interviewee: Well as far as price-setting practice is concerned, we follow the practice of setting lower prices with respect to our competitor’s brand for capturing market share. More precisely in business terminology, you can say that we follow the Price Penetrating Strategy.

Interviewer: Tell me something who are your competitors and to what extent you drop the prices of similar products?

Interviewee: Currently our major competitor is Suzuki Motors and to some extent Japanese Imported Vehicles. We are charging 11.25 Lac for FAW V2, its basic specification is

  • 1.3 L Petrol
  • SRS Airbags
  • ABS+ EBS
  • Power Windows
  • Electric Power Steering

Whereas Suzuki is charging 15.5 Lac for Swift 1.3. You can say V2 is the cheaper version of Swift with a difference of 4 Lac PR.

Pricing of Faw Spare Parts

Interviewer: That’s pretty impressive. Let me know about the pricing of your spare parts as compared to Suzuki Motors.

Interviewee: Spare parts are not that much expensive. Headlight cost 12000, Front Fender 4000, Brake pads 4500 and back-light cost 9000. I know Suzuki parts are not that costly but the thing to understand here is that there are certain part grades of Suzuki. If you buy the same thing from their dealership then you would find no hard difference between the prices of both brands.

Interviewer: Thanks for the needed information, sir!

Interviewee: My pleasure.  

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