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Price elasticity and Sunsilk Shampoos

Price will often alternatively refer to the amount of payment requested with a owner of goods or services rather than the eventual payment amount. The wanted amount is often called price tag or selling price, while actual payment can be called the deal price or trade price like the bid price or buying price is the number of payment made available from a buyer of goods or services, although this interpretation is more prevalent is advantage or financial marketplaces.

(en. wikipedia. org/wiki/price)

According to the economists the purchase price can be defined as ratio between your levels of goods that are exchanged from the other person transactions.

Example: - exchange of apples for 2 packages of bread or exchange of goods with the assistance is called price.

Price differs when there exists competition in the market according to the market framework is:-

Price competition:-

Price competition can be said as differentiating the merchandise or service from compete ting products on the basis of their prices.

(en. wikipedia. org/wiki/non_price_competetion)

Price competition can even be said as conflict where the competition brands lower their price to get more consumers and to match the various competition products in the market.

(en. wikipedia/wiki/price_ battle)

The price competition typically benefits the consumer as they are able to choose the products at cheaper prices as well as the services related to the consumer.

Price competition is induced due to various distinctions in the product s and services present in the market, that is because of same group of products on the market are present but with different prices to remain the best market.

Product differentiation:-

As due to little brands present in the market to choose and also big players present to be able to capture the market due to the price change and service.

Penetration rates:-

If a fresh player enters the market, it offers a lesser price than other products of the same category on the market to grab the consumer and attention.


If the industry framework has few competitive players n the market. The other players within the market could have a detailed watch towards the product present in the market or new forthcoming products.

Product optimization:-

Incline to lower prices alternatively than turn off or decrease the output if indeed they wish to keep up with the scale of economy.

Predatory pricing:-

Companies with healthy or good bank or investment company balance and money may forcibly or deliberately reduce their price remain the very best player on the market.


Competitors continue to be best in the market and ban the admittance of a new product in the market or a new competitor on the market.

(en. Wikipedia/wiki/price_conflict)

Non-price competition:-

It is a market strategy in which the firm tries to tell apart between product and services from the competing products based on characteristics like design and working conditions of the merchandise in the market.

The firm distinguishes its product by offering through the quality of service, extensive distribution customer concentrate, or any other sustainable competitive advantage apart from price.

Firms engage in non price competition to the additional cost involved with it because it is more profitable than providing the merchandise at less price and also it shows more earnings and gain than price wars and involves less risk than price competition.

There are various factors behind non price competition they can be:- Monopolistic market:-

The market where there is free admittance and exit of the organizations that is the a variety of firms can enter in the free trade market and exit the market any time and in any manner.

Lasting competitive advantage:-

It is thought as the strategic advantages one business entity has over its rival entities within its competitive industry reaching competitive edge and strengthens the position of business better with in the business environment.

Product differentiation:-

It is a process of distinguishing or offering from others to make an attractive product so as the product consumers or entice the prospective market. That involves differentiating it from other competitor's brands on the market.

New product development:-

Launching of a new service or product in the market so as there are less variety of players to consider or use the strategy of the business and the brand grabs increasingly more consumers towards the merchandise and the rivals brand will not enter the market.

It is performed by:-

Idea generation:-

Inventing new products and presenting the services in the market.

Idea screening period:-

Targeting the consumers who use inventions and are seeking for services on the market.

Business evaluation:-

Estimating the selling price based after competition and comments from customers seeing the sales size based on how big is the market and such sales tools.



The level to which a demand or source curve changes or responds based on the change in cost curve is named elasticity.

Elasticity varies among the merchandise because some product may become more essential to the consumers.

Elasticity goes with a simple formula of

%change in volume /%change change in price

Elasticity is a simple tool to assess various guidelines of economies in a product less way few elasticity's used in elasticity are used in:-



Elasticity can be used to understand various ideas of the economic theory for case, incidence in taxation, managerial concepts.

Elasticity occurs in 2 conditions and in 2 ways:-

Elasticity of demand:-

When there exists change in demand scheduled to increase or reduction in the demand of the commodity it is named elasticity of demand.

Elasticity of demand occurs anticipated to:-

Price elasticity of demand:-

As there may be increase or decrease in the price tag on the item the demand or demand or the elasticity of demand curve shifts corresponding to it, usually the demand curve goes negative and is known as absolute value.

Cross price elasticity:-

Cross price elasticity measures the percentage change in demand for a particular goods caused by a percentage change in the price of another good. A big change in the price tag on a related good triggers the demand curve to shift in reflecting a big change popular for the original good. The curve shifts horizontally along the axis.

Income price elasticity:-

It steps the ratio change in demand caused by a percentage change in income. A change in income causes the change popular. The elasticity can vary in line with the same path in income


Elasticity of source tells us the way the supply of the item changes based on the supply of the merchandise in the market is manufactured, generally it should go positive and steps upwards.

It occurs due to few reasons:-

Price elasticity of supply:-

I t measures the way the amount of an good firm hopes to supply changes in response to improve in price. Inside a monologous to the purchase price elasticity of demand it catches the extent of movement along the resource curve.

Elasticity of scale:-

Elasticity of size or product or output elasticity's measure the percentage change in outcome included by a percentage in output. The process is thought to exhibit constant comes back to level f a percentage change in inputs cause an equal ratio in outputs


(Chiang; wain Wright (2005) fundamental methods of economics (4th model) M. C. GROWhill)

(o'Sullivian;a;shefferin. s(2005). macroeconomics (4th edition)Pearson)

Part 2:-

As heading to a grocery store in New Delhi to a store called "BIG BAZZAR" which is a very famous store in India and in New Delhi. There have been various kind of hair shampoo brands present in both store that is a wide spread store in Delhi areas and NCR areas areas in India.

The distributions of varied brands were viewed according to the brands of the business of the shampoos or the brand of the hair shampoo within the store. There is a wide variety of shampoo brands present at the store.

The space available for the range of the shampoo was at a straight lines and in columns was presented with to each brand hair shampoo and the variety of shampoo present of different brand. For instance :- sunslik, pantine, garnier, etc acquired various range of shampoo in the same brand name for men and women in order there are all kind of alternatives for folks with different wild hair type.

Talking about various branded companies producing shampoos in the market for various wild hair types and providing their product on the market, we would speak about few companies and their products and their charges strategies and checking their demand and offer on the market.


Pantene shampoo a product of PROCTAR&GAMBLE Company is producing shampoos since 1985 and exporting in India since2003 and is a great success in India and in various other areas of the united states. First product of the hair shampoo was Pantene shampoo with pro-v formulation (proteins and vitamin supplements) for normal scalp based on the various examination and market research they came up with various kind of products for various hair types. The various products of the company shampoo are, shampoo for dry mane, dull hair, coloring hair, thick mane, medium thick wild hair, shiny hair, curly hair, new shampoo for falling scalp, herbal shampoo and the main brand brain and shoulders and rejoice that they had many other varieties under the same brand name.

Rates strategy:-

the charges strategy they use to market their brand is the price reducing price strategy that is each goes under the PRICE WAR strategy that is while starting the product under their same brand they cut the price with their other products and advertise their new product and also slice the price with their new product also to get their product sold in the market for instance, while releasing the PANTENE hair thinning shampoo they reduced the price of their other types like reducing the price of 100 ml, 200ml, 250 ml, and 400ml bottles by 20 % and also keeping the price of their new product so low that every consumer buy their product no other branded comes in their way so as they could stay and preserve as a the only real market players.

The market they are really in can be an OLIGOPOLISTIC market where there are less amount of players which they can take care of and change their product according their own survival.

The demand graph of the PROCTER AND GAMBLE company show that the way they are in an oligopolistic market structure.

The white graph group shows the increasing demand of the product on the market and the red strap shows the decrease in the price tag on the product which are no for sale more in the market and there is more demand in the market for that particular commodity in the market.


A product of UNILEVER group is the next largest hair shampoo producing group in world and has various kind of products and locks conditioning products from the same brand name SUNSILK in started producing hair shampoo in 1954 and premiered in India in 2003 after couple of months when the brand name shampoo PANTENE entered the market and it was initially launched in united kingdom.

The brand SUNSILK has various types under it like the hair loss dark-colored, sunsilk vibrant, sunsilk green, sunsilk yellow for plumpy locks, sunslik dark brown for dark scalp and various other types of shampoo in INDIA.


The prices strategy that UNILEVER uses is product costs strategy where they decrease the price of the product which has been sold more and increase the price of the product which has been sold less that is they use the demand price strategy to keep its monopoly searching for the particular type of brand product in order they become the sole competitors in the market for that one kind of product on the market, for case they use sachets of the greatest advertising product like the red sunslik sachets and also cheap price for the bottles and for the many kind of size containers present in the market.

(http://www. google. co. in/imgres?imgurl=http://3. bp. blogspot. com/_NLsx8ZANcDY/S7oHDs6s8dI/AAAAAAAAAqU/cIuQ3aliX6M/s400/sunsilk-trend. jpg&imgrefurl)

They try to use a monopoly talk about of market as to remain the sole market player for all of the same brand products they use and make and also to be the sole market leaders.

Also they go for increasingly more advertisements and brand advertising schemes to make the merchandise demand in the market and also tie up with various varieties of head of hair dressers around the globe to get the best product from it and create the demand for the product and creating exclusive production system in the market.

The demand graph of sunsilk shampoos present in the market depicts how they create monopoly of the product on the market.

(http://www. google. co. in/imgres?imgurl=http://business. outlookindia. com/dailyimages/051107/young. gif&imgrefurl)

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