Do we as a brand need to cut down pricing to sustain in the cut throat competition

Cutting price is like giving a pound of flesh for free.

As a brand one needs to play the game of chess in such a way that you are one step ahead of competition.

In this cut throat competition one needs to be innovative,

• To keep the consumer hooked on to your brand.

• By giving better options to the consumer

• It raises the bar in the market

• Keeps the competition in check

• Creates an entry barrier for any new entrant

One good example of innovation is Gillette – which keeps coming out with innovations in the razor. This not only gives better option to the consumer but ensures that competition (if any) will have to raise its bar. By constantly innovating and giving better razors the company has created a good entry barrier.

Thus, cutting price is not the option to sustain oneself in the advent of cut throat competition, one can cut the competition by providing innovative value additions in the product which justifies the price and keeps the consumer loyal to the brand.

Sujatha I amsorry I do not agree with you. Instead create the image the price is value for money.

All the brands offer various discounts and this is a global phenomena and every body clears the stocks and sells increases since every body is waiting for sale.

So price reduction at an unusual time actually harm the good will of the brand.