EDLP - An effective pricing strategy??

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vitaj
Posts: 60
Joined: Fri Jul 11, 2014 9:50 pm

Re: EDLP - An effective pricing strategy??

#1 Postby vitaj » Wed Aug 06, 2014 10:05 pm

The giant Walmart is a leader on EDLP- Every day low Price. The reason why they are following this strategy and how can they afford is that they buy in bulk resulting in bulk discounts. Also the brand name Walmart is enough. In India, Big bazaar is trying to replicate that model but it i difficult to that because if EDLP model is followed, discounts have to removed which is not possible because Indian shoppers shop based on discounts.

shemeem577cms
Posts: 15
Joined: Fri Apr 25, 2014 6:47 pm

EDLP - An effective pricing strategy??

#2 Postby shemeem577cms » Sun Jul 27, 2014 12:18 am

Every Day Low Price (EDLP) was a pricing strategy first introduced by Walmart. Now, some of the Indian retail players have also started using the Every Day Low Price strategy for improving their sales. This strategy emphasizes continuity of retail prices at a level somewhere between MRP and Deep discount sale price. Low price do not necessarily mean the lowest. A sale at another store may be offering the lowest price. EDLP can also be called as Every Day Same Price because the price don't have significant fluctuations. Retailers that follow EDLP have less frequent sales promotions.

The main advantages of implementing an EDLP strategy include:

> - Reduced Price wars between Competitors
>- Less advertising is needed because we are not changing the offers every week or evey month.
>- Reduced Stock-outs
>- Improved Inventory management is possible


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