Question

When my newly established FMCG brand launches its brand in a foreign country, what should be its pricing policy? Extension or ethnocentric, adaptation or polycentric, or geocentric pricing? What are these pricing policies advantages and disadvantages? (international marketing perspective)

Answer 1

Answer:

In all places in the world, the FMCG brand will have equal, regular rates. The best strategy for an FMCG brand is the ethnocentric evidence approach. This policy means that, irrespective of other factors, such as shipping costs, external costumes, taxes and other expenditures, the company will have uniform rates around the markets and regions. The company should include all costs in the product's standard price. McDonald's for example has the same prices across countries, in at least one region. The rates are not geographically different. The advantage of this method is that consumers are aware of prices throughout the world. The downside is that the business may be lost because the tax or other rate differs from country to location. It makes sure the prices are identical worldwide. With the extension scheme, rates worldwide are the same. The advantage is that it offers a standard price, but the drawback is that it could differ from country to country in terms of the underlying price. Price management means that prices respond to environmental and market requirements. Prices also differ according to income and type of region. The geocentric price means that pricing in compliance with competition and suppliers is determined by the client. The benefit is that the costs are market-oriented and the downside is that the business depends on other businesses. The company FMCG should therefore employ an ethnocentric pricing strategy.

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