Retail & Supply Chain Professionals |
Business & Strategy |
KMC [Knowledge Management Club]
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Activity:
20 views;
last activity : 07 06 2010 20:18:09 +0000
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1
Large Scale Productiones
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Increase penetration
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According to me these companies manage to earn profit inspite of selling there products for less than rupees as they produce there goods on large scale so there cost of production get minimized. So according to me this is one of the reason that these companies develop. |
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We were able to count at least 50 items that retail for just Re 1 or under. The amazing part is that there are several industries that thrive solely on these products. Now just imagine that such products not only manage to recover costs, but also make significant profits. Distribution plays a key role in high-volume, low-price businesses. In recent times more and more products are getting into the Re 1 fray to increase trials by consumers, to penetrate the never-used segment and also to increase the frequency of purchase of such products. These low-priced products are those that are bought frequently, as consumers may not buy certain products in bulk due to the affordability factor. The smaller packs also help in increasing penetration, especially in rural markets. |
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