base determining the strategy for procurement defining pricing strategies and

Base determining the strategy for procurement

This preview shows page 14 - 18 out of 21 pages.

base, determining the strategy for procurement, defining pricing strategies and supply chain
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15 requirements. K & N’s sourcing strategy also involves planning to competitive buying sources for its raw materials, components and services along with alternative variables. Pricing Pricing or Revenue Management is the application of disciplined process that predict consumer behavior at the micro-market level and optimize product availability and price to maximize revenue growth. The primary aim of Revenue Management is selling the right product to the right customer at the right time for the right price. The basis of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment. Pricing involves redefining pricing strategy and developing disciplined pricing tactics. The key objective of a pricing strategy is anticipating the value created for customers and then setting specific prices to capture that value. K & N’s focuses on the revenue management to adjusts the pricing and available of supply of assets to maximize profits because revenue management play a significant role on the profitability of the firm. in the high demand seasons, K & N’s try to manage revenue by focusing on the customers segments and taking the orders in bulk form and then fulfilling them at the right time. As there is high demand or bulk of orders from re tailer side to distribution centers so it helps K & N’s to use efficient way to fulfill these demands and deliver them through the efficient modes of transportation. K & N’s make decision to charge price against their competitors or even their own products, but the most value comes from pricing strategies that closely follow market conditions and demand Once a pricing strategy dictates what a K & N’s wants to do, pricing tactics determine how a K & N’s actually captures the value. Tactics involve creating pricing tools that change dynamically, in order to react to changes and continually capture value and gain revenue.
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16 Distribution Network of K&N’ s: The distribution network of K&Ns is very simple. The final product is sent from product processing plant that is located at Raiwand Road, Lahore to the different warehouses and then from K&N’s Manufacturing & Production Plant North Region (Islamabad, Rawalpindi, Jhelum) Punjab Region (Lahore & Multan) South Region (Karachi & Hyderabad) Retailers K&N Stores Customers
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