They develop their own collections of product

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But not only that, Falabella has begun to develop its own line of products to boost its growth.

So much so that up to now 25% to 30% of their total sales are their products. The main value that their products offer are:

s.
Better contribution margins allowing for mass development of campaigns and price promotions.
They reduce the burden on other campaigns by offering and optimizing their negotiating position.
Pricing Policy
Below you will see what objectives Falabella uses to decide the prices of its products.

Set the company's financial objectives such as profits.
They adjust to the reality of the market (consumers have the ability to purchase such a product at media directors email database such a price)
Maintain a product position and be consistent with the other variables of the marketing mix.
The price is also closely related to the channel used in distribution, the type of promotion, promotions used and the quality of the product.
If production is relatively expensive, the price will also be relatively expensive if the product is supported by mass advertising and promotional campaigns.
A low price may imply a reduction in product quality, poor marketing strategy and effort on the part of sellers.
Pricing Strategies, Methods and Tactics
Now we will explain about the best strategies and methods that Falabella used to set prices for its products.



successful marketing plan

Price Skimming Strategy
Here Falabella decides on this high-price strategy when a new, high-quality product comes onto the market.

Over time, this same segment is reduced until it reaches other market segments.

When the benefits are real and solve customers' problems to attract them to purchase.

When you are assured that there will be a good segment of customers in time who will be able to purchase our product at the assigned price, thus achieving profitability.

When our product has good added value that differentiates us from the competition for a long period of time.

When customers interpret a high price as a good product of equally high quality.

Penetration Pricing Strategy
In this case, Falabella uses this method with new products that it introduces to the new market at a low price.

In this way, you can avoid the instant reaction of your competitors and gain new customers who are sensitive to product prices.