What are the differences between Price and non price competition

What atomic number 18 the differences between damage and non harm disceptationTo growth the profits or revenue of any firm we select equipment casualty tilt or non terms competition. determine competition is a hawkish situation in which price is major means of differentiating the reapingsA return or service establishation be competing in the securities industry by many ways. In price competition , dickens increases which are similar compared by the client on their respective pricing, the customer mainly purchase the proceeds on the understructure of which is cheaper, they are other ways of competition but price coincidence will effect.Price competition is one of the marketing strategy which used by firms to increase profits and revenue of the firms. To compete efficiently firm mustiness be match the price or it need to be beat the price. Firm must be lowest represent producer and it need to shift price frequently ,in price competition even your competitor respo nd to your price your firm need to respond as quickly as attainable when the competitor alteration the price . Customer will switch to steel which is low priced placeNon price competitionNon price competition is a competition among different firms that they distinguish their crossings example product features, style, delivery, promotions, advertising, selling staff etc.non pricing competition is mainly used by firms to distinguish their products, any firm can use non-price competition it is common for monopolistically competitive firms because firms which operates in monopolistically competitive market are price takers.Non price competition is a marketing strategy to increase profits and firm revenue. Every firm try to distinguish their products by its quality or promotions or product features any other sustainable competitive advantage other than price, Can build customer loyalty towards the brand. The firm must promote the distinguishing features to create customer awareness. MONOPOLISTIC MARKETThe market construction of monopolistic competition is situated between those of perfect competition and monopoly1)in monopolistic competition profits can be maximized when marginal revenue equals to marginal cost MR=MC.2)there are many buyers and many sellers3)the products being sold are differentiated or heterogeneous in character4)there is free entry or mutter of firms5)the goal of the firm is to maximize the profits both in short run and long run short run comes under price competition and long run comes under non-price competition6) product differentiation is high7)completion on quality, price, marketingOLIGOPOLISTIC MARKETOligopoly market is an imperfectly competitive market social system in which few large firms dominates the market .oligopolistic market is non price competition because product different ion exists in it, firms have reason to compete on the basis of other factors besides the priceCharacteristics of oligopoly market1)few sellers2)either a homogeneous or a differentiated product3)different market entry4)oligopolistic competition are price maker5)in this few large firms one firm action influence othersthe four market perfect competition,monopoly,monopolistic competition, oligopoly in which firms in perfect competition are price-taker ,whereas firms in other three markets are price makersELASTICITYThe livelyity of demand is the measure of response of demand for a product to tilt in any of its determinants example price of the product, price of substitutes, price of complements, consumers income and consumers expectations regarding prices.If the price of the compulsory goods can be increased and the consumer can choose the complementary goods then it is called elastic and the consumer cannot choose the complementary goods ,they are compulsory goods then it called inelasticThere are different types of elasticity of demand1)price elasticity2)cross elasticity3)income elasticityPrice elasticity of demand the price elastic ity of demand is demand for the product or firm to change in its price ,elasticity of demand is the percentage change in the quantity demand of a firm or product as a result of certain percentage change in its priceEp=percentage change in quantity of demand /percentage change in firm= %Q/%pPrice conciliatoryityif it is more than 1 Elastic Demand when price changes quantity of demand for product is also increased Whenif it is less than 1 Inelastic Demand when price decreases quantity of demand for the product is little increased when compared to previous revenueUnitary Elastic when price decreases quantity of demand for the products is equal as previous revenue.Price elasticity for single goods If the goods are luxuries elasticity will be higher, when substitutes are available consumer have choice and time to choose.When ED1 organize is above mid-point, demand is elastic.When ED=1 point is at Midpoint, demand is unit-elasticWhen EDWhen elasticity of demand is price inelastic, w henever price decrease reduces integrality revenue.When elasticity of demand is price elastic, whenever price decrease increases total revenue.In unit elastic demand, whenever price decrease there is no change in the total revenueArc and point elasticity when price elasticity of demand is metrical between any two finite points on a demand curve it is called arc elasticity and elasticity measured at a point on the demand curve is called point elasticityCross Elasticity of demand cross elasticity defines A change in the quantity of demanded for one product is created by a price change in a related product i.e substitute good and praiseful good represents cross elasticity of demand.If two goods are substitutes for each other cross elasticity is high and if the two goods are totally different and unrelated , cross elasticity between them is zero.When cross elasticity is positive between two goods then they are called substitutes .when cross elasticity is negative between two goods t hey are not complementary as this is found price change is very strong when income effects.Income Elasticity of Demand A small change in consumer income will lead to change in quantity of demand for the product.As consumer income increases and income spend on the product is same as before elasticity for the product is one.If the proportion spent on the product increases as income increases then the income elasticity for the product is gravider then oneIf the proportion spent on the product decreases as income increases then income elasticity for the product is less than oneFactors affecting elasticity demand1) The fraction of income spend on the good2) How narrowly delineate the good is3) How easy is to find out about substitutes4) How much is available to adjust to price changes5) nature of commodity6)differed consumption7) time factor8) price direct9) joint demandSHAMPOO USAGEI visited a local overseer market and focused on shampoos section where I found full range of shampoos of different brands. There are few companies which produce many varieties of shampoos and conditioners which will be available at any store at a reasonable rate. In my paper I specified on the following company brands which are listed below1) Hindustan unilever particular Dove Clear Clinic summing up Sunsilk2) Procter and gamble Head shoulder Pantene Rejoice3) Cavinkare Meerachicknyle4) lorealGarnier fructis5) ITCvivel basal proHINDUSTAN UNILEVER LIMITEDHindustan unilever limited which was established in 1933, the first shampoo which they launched was clinic confirming which had a great demand compared to the other company products at that time (19s). The main reason was they were successful in satisfying the customer, which made there brands so popular.CLINIC PLUSClinic plus launched 3 different varieties of shampoos1) Clinic plus strong and long health shampoo2) Clinic plus strong and natural shampoo3) Clinic plus long and strong anti dandruffAnother shampoo brand from Hindu stan unilever limited is Sunsilk, a global brand which was launched in 1964.SUNSILKSunsilk was launched in 6 different varietiesSunsilk Thick long shampoo conditionerSunsilk subdued and smooth shampoo conditionerSunsilk hairfall solution shampoo conditioner.Sunsilk damage repair shampoo conditionerBlackshine shampoo.Anti-dandruff shampoo.ALL CLEARClinic all clear is another brand from Hindustan unilever limited, it is the first brand which targeted men specially. Formulated anti dandruff shampoo it was launched in 1980 in india and 14 other countries world wide later it was renamed as CLEAR.Clear is available in 5 varientsActive CareIce Cool.Hair fall DefenseSoft Gloss.Radiant BlackDOVEDove is the leading brand from Hindustan unilever limited globally go down was launched over 80 countries world wide and it is also called fastest growing hair category brand in India , dove attracts wide range of female customersDove has a wide range of hair care products that repair accumulat ed damage and protect and care for the hair .The natural Zero Damage System repairs and protects hair from damage. There are variety of shampoo from dove and conditionerDry therapyBreakage therapyFrom the HUL company there is a cheaper product akin clinic plus and sunsilk which helps country-bred people and costly product like dove for urban people.From both urban country-bred areas HUL is covering both urban and rural areasTo increase the sales HUL released shampoos in various sizes for various brandsFor clinic plus, sunsilk the prices are similar7.5 ml sachet-3 rs100 feeding bottle 67 rs200 ml bottle- 120rsFor dove the prizes of respective samples is7.5ml sachet 3 rs100ml bottle 130 rs200 ml bottle 215 rsIn the local store 35% of the place is meshed by hul productsHUL occupies market share over 50%PROCTER AND GAMBLEProcter and gamble launched head shoulder and it is worlds no one anti dandruff shampoo, which reduces not only dandruff but also eliminates p.o value. guid e SHOULDERSHead Shoulders released 6 different varieties of productsHead Shoulders Smooth Silky.Head Shoulders Refreshing MentholHead Shoulders Clean and BalancedHead Shoulders Silky BlackHead Shoulders course CleanHead Shoulders Nourishing Aloe VeraPANTENE Pantene is the product of Procter and gamble, which was launched keeping women as there prime focus. Pantene is the shampoo that conducts survey on ladies hair loss.Rejoice is the another brand from Procter and gamble who launched Asias No. 1 shampoo Micro-Silicone conditioning technology gives twice as smooth, and easy to comb hair versus ordinary shampoos.as it use natural ingredients like henna, amla, reetha and shikakai.PG released its products in 3 different varities RichSilky CleanCompleteProducts from the Procter and gamble is highly costly product which covers only urban areasIn the rural areas only 7.5 ml sachets will be sold out 40 % of company profits is from sachets onlyPrices of pg is as follows7.5 ml sachet -3 rs100ml bottle-110rs200 ml bottle -210rsIn local stores place occupied by the PG is 25%PG occupies market share over 16 %CAVINKARECavincake was established in 1983 it launches 3 different varieties of shampoosMeera it is axenic herbal shampoo with badam enriches and many herbalsChick is the first shampoo launched by the cavinkare at the time of clinic plus it is compitetor for clinicplus chick is one of the most used bu rural peoplesNyle- nyle shampoo is untriedly launched by cavincare it is in 4 different varients Amla, Tulsi, Aloevera and Green teaCalvinkare products release their products in following szes7.5ml sachet-3 rs50ml bottle- 35 rs100 ml bottle -60rs200ml bottle 110 rsIn local stores place occupied by the PG is 15%Calvinkare occupied market share over 19%LOREALGarnier was launched in 1991 Garnier was launched with revolutionary Duox range of shampoos in the year 1991. Garnier is not an Indian brand but it has crafted a special place in todays Indian market. Garni ner has reached peaks because of its innovations and by launching new products which attracts the consumers. Presently garnier has targeted the middle and upper class by reducing its price and launching huge range of there collection.It has two sub brands they areGarnier fructis andGarnier ultra souxGarnier fructis was launched with different varieties likeGarnier fructis daily care shampooGarnier fructis triple nutrition fortifying shampooGarnier fructis anti-dandruff shampooGarnier fructis sleek shine shampoo.The credit of launching a simulation shield shampoo and Shampoo + Oil 2 in 1 shampoo goes to Garnier. It is the first company to launch a shampoo which contains essence of vegetable oil and shampoo together in a same pack. Coming to the garnier shield shampoo it was launched in order to nourish and strengthen the colored hair.Garnier could sustain its level in Indian market by introducing variety of products into the market and by there advertising style. Its innovative id eas and new releases are making its products popular. On a survey it was noted that the number of consumers using Garnier has drastically increased as they make there products from natural fruit oils which are harmless. Garnier has reached to the core of the market as it is able to satisfy its consumers and meet there requirements.Garnier products released their products in th following sizes7.5ml sachet-3 rs100 ml bottle -115200 ml bottle- 220In local super market space allocation for the loreal products are 15 %Loreal products occupy market share over 10 %ITCItc launches vivel ultra pro in 2009 with 3 old age extensive research it as unique actipro -z omplex which will solve dandruff problemsVIVEL ULTRA PROVivel ultra pro products released their products in th following sizes7.5ml sachet-3 rs100 ml bottle -90200 ml bottle- 160In local super market space allocated for the product is 5%It occupies market share over 5%CONCLUSIONFrom the above shampoos I conclude most of the shampoos sachets is sold instead of bottles due to price many of the shampoos companies get 40 % profit from sachets only HUL is occupied 1st place in shampoos market it has low price products to attract rural areas and high price products to be sold in urban areas it occupies 50% of market share. And then calvinkare because it is mainly used by rural areas due to price comparision , calvinkare products are relatively low when compare to any of the other it occupies 19% this are the only 2 leading companies in shampoos market