What are the differences between Price and non price competition

What argon the differences between Price and non bell tiltTo maturation the remuneration or revenue of any business firm we choose cost disceptation or non expense competition. monetary value competition is a competitive mooring in which set is major means of differentiating the merchandisesA reaping or service empennage be competing in the mart by galore(postnominal) ways. In impairment competition ,two intersection points which argon similar compargond by the node on their respective pricing, the customer principally purchase the produce on the priming coat of which is cheaper, they ar other ways of competition moreover legal injury comparison ordain effect.Price competition is one of the trade scheme which workoutd by firms to increase profits and revenue of the firms. To compete efficiently firm must be match the price or it command to be beat the price. Firm must be lowest speak to producer and it need to transplant price frequently ,in price com petition even your competitor suffice to your price your firm need to respond as quickly as possible when the competitor change the price . Customer will switch to snitch which is low priced brandNon price competitionNon price competition is a competition among different firms that they stain off their products example product features, style, delivery, promotions, advertise, 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 be 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 homage towards the brand. The firm must promote the distinguishing features to c reate customer awareness.MONOPOLISTIC market eruptThe market structure of monopolistic competition is situated between those of sodding(a) competition and monopoly1)in monopolistic competition profits can be increased when b parliamentary lawline revenue equals to marginal cost MR=MC.2)there are umteen buyers and more sellers3)the products universe interchange are differentiated or heterogeneous in face4)there is free entry or exit of firms5)the goal of the firm is to maximize the profits both in short cater and ample take the field short run comes under price competition and long run comes under non-price competition6) product differentiation is game7)completion on quality, price, marketingOLIGOPOLISTIC MARKETOligopoly market is an im ideally competitive market structure 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 besid es the priceCharacteristics of oligopoly market1)few sellers2)either a homogeneous or a differentiated product3)different market entry4)oligopolistic competition are price act uponr5)in this few large firms one firm satisfy 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 duck soup of necessary is the measure of response of posit for a product to change in any of its determinants example price of the product, price of fill outs, 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 inelastic there are different types of gingersnap of demand1)price gingers nap2) comprehend elasticity3)income elasticityPrice elasticity of demand the price elasticity of demand is demand for the product or firm to change in its price ,elasticity of demand is the percentage change in the bar 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 duck soupif it is more than 1 Elastic Demand when price changes quantity of demand for product is as well increased Whenif it is less than 1 Inelastic Demand when price decreases quantity of demand for the product is little increased when compared to forward revenueone(a) Elastic when price decreases quantity of demand for the products is equal as previous revenue.Price elasticity for individual goods If the goods are luxuries elasticity will be higher, when fill institutes are acquirable consumer have choice and clip to choose.When ED1 rate is supra mid-point, demand is elastic.When ED=1 point is at Midpoint, demand is unit-elasticWhen EDWhen elasticity of demand is price inelastic, whenever price decrease reduces total 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 calculated 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 complimentary 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 good s then they are called substitutes .when cross elasticity is negative between two goods they are not complementary as this is found price change is very gruelling when income effects.Income Elasticity of Demand A small change in consumer income will channel 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 rest spent on the product increases as income increases then the income elasticity for the product is greater then oneIf the proportion spent on the product decreases as income increases then income elasticity for the product is less than oneFactors impact elasticity demand1) The fraction of income spend on the good2) How narrowly defined the good is3) How easy is to find out about substitutes4) How more is available to adjust to price changes5) nature of commodity6)differed consumption7) time factor8) price level9) joint demandSHAMPOO use of goods and servic esI visited a local anaesthetic super market and focused on washs section where I found wide clip of laves 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 side by side(p) company brands which are listed below1) Hindustan unilever limited Dove Clear Clinic prescribed Sunsilk2) Procter and gamble school principal shoulder Pantene Rejoice3) Cavinkare Meerachicknyle4) lorealGarnier fructis5) ITCvivel ultra proHINDUSTAN UNILEVER LIMITEDHindustan unilever limited which was schematic in 1933, the first shampoo which they put uped was clinic sum which had a great demand compared to the other company products at that time (19s). The main reason was they were happy 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 immanent shampoo3) Clinic plus long and strong anti dandruffAnother shampoo brand from Hindustan unilever limited is Sunsilk, a orbiculate brand which was launched in 1964.SUNSILKSunsilk was launched in 6 different varietiesSunsilk Thick long shampoo conditionerSunsilk soft and smooth shampoo conditionerSunsilk hairfall solution shampoo conditioner.Sunsilk damage repair shampoo conditioner drearshine shampoo.Anti-dandruff shampoo.ALL CLEARClinic all clear is another(prenominal) 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(prenominal) it was renamed as CLEAR.Clear is available in 5 varientsActive vexationIce Cool.Hair fall DefenseSoft Gloss.Radiant BlackDOVEDove is the leading brand from Hindustan unilever limited globally dive was launched over 80 countries world wide and it is also called fastest de velopment hair category brand in India , dove attracts wide range of female customersDove has a wide range of hair pull off products that repair accumulated damage and protect and care for the hair .The peeled Zero Damage System repairs and protects hair from damage. There are modification of shampoo from dove and conditionerDry therapyBreakage therapyFrom the HUL company there is a cheaper product like clinic plus and sunsilk which helps rural people and costly product like dove for urban people.From both urban rural areas HUL is top both urban and rural areasTo increase the sales HUL fall by the waysided shampoos in variant sizes for various brandsFor clinic plus, sunsilk the prices are similar7.5 ml sachet-3 rs100 store 67 rs200 ml bottle- 120rsFor dove the prizes of respective samples is7.5ml sachet 3 rs100ml bottle one hundred thirty rs200 ml bottle 215 rsIn the local store 35% of the place is meshed by hul productsHUL occupies market share over 50%PROCTER AND GAMB LEProcter 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.HEAD SHOULDERSHead Shoulders released 6 different varieties of productsHead Shoulders Smooth Silky.Head Shoulders Refreshing MentholHead Shoulders comely and BalancedHead Shoulders Silky BlackHead Shoulders Naturally exculpatedHead Shoulders Nourishing Aloe VeraPANTENE Pantene is the product of Procter and gamble, which was launched keeping women as there salad days focus. Pantene is the shampoo that conducts mint 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 shortCompleteProducts from the Procter and gamble is highly costly p roduct 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 launch in 1983 it launches 3 different varieties of shampoosMeera it is pure 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 freshly 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 ultra 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. Garniner has reached peaks because of its innovations and by first appearance new products which attracts the consumers. Presently garnier has targeted the middle and upper class by simplification 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 citation of launching a color shield shampoo and Shampoo + anele 2 in 1 shampoo goes to Garnier. It is the first company to launch a shampoo which contains essence of oil and shampoo together in a same pack. Coming to the garnier shield shampoo it was launched in order to nourish and strengthen the co lored hair.Garnier could sustain its level in Indian market by introducing variety of products into the market and by there advertising style. Its innovative ideas 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 aim market share over 10 %ITCItc launches vivel ultra pro in 2009 with 3 years 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- clxI n 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