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IMBA students at Herald College conduct weekly events to get hands-on learning experience that develops a diverse range of skills applicable in various professional contexts. “The Price Puzzle: Solving the Pricing Mystery” is the title for one such event.

The event is divided into three segments:

• Drama: “The decoy effect: The illusion of choices”
• Panel discussion: “The Price Puzzle: Solving the pricing mystery”
• Bid and blitz: “Marketing Mastermind Auction”

With these segments the event tries to dive into the topics of pricing strategies in marketing for a business. The learning of such topics is described below.

Getting started with pricing strategies

Price, which is one of the 4 ‘Ps’ of marketing, refers to the cost of product or service that business offers. Pricing strategy is the process to determine this price. It involves understanding consumer behavior, market dynamics, and strategic decision-making. A good pricing strategy can enable a business in one or more ways such as:

Enter new markets

• Maximize Profits
• Get competitive advantage
• Set customer’s perception of product/service and brand
• Set market position
• Boost revenue

Various pricing strategies

There are many pricing strategies implemented in real markets by businesses to cater different market conditions, customer behaviors, product or service attributes, and business goals. This event tries to highlight following three strategies:

1. Penetration pricing: Set the price low for a new product or service to capture a large share of the market and increase price over time. This strategy aims to target customers who look for value for their money and are willing to try out new products or services. The examples of implementation of this strategy are: 

• Jio, an Indian telecom company, used this strategy when it first launched by offering low prices for its data and voice plans in order to attract customers and gain market share.
• Xiaomi, a Chinese smartphone company, uses this strategy to get market share in the new markets such as Nepal. The company introduced its smartphones with low prices and high-end features, which helped it to attract customers and gain market share in the highly competitive Nepali smartphone market.

2. Psychological pricing: Humans’ decisions are always driven by psychological factors such as perception, emotions, and cognitive biases. Businesses use various tactics to leverage consumer psychology to influence purchasing decisions, often by manipulating perceptions of value, affordability, and quality. Examples of such tactics are:

• Odd/even pricing: Price the products just below round number i.e Rs 99 (odd price) instead of Rs 100 (even price) to create a perception of significantly lower price. We have seen this implementation on e-commerces such as Daraz’s products very often.
• Decoys: Introduce a decoy which is a slightly less attractive option to make the target option seem more appealing in comparison. Cinemas offering small popcorn for Rs 50 and large for Rs 80 might not attract many. That’s why they introduce a medium for Rs 75, and for us the large seems like a better deal.
• Price bundling: We often see offers where multiple products or services are offered together as a package at a lower price than if they were purchased separately. Combo deals in fast food meals, Internet packages offering TV packages, schemes such as “Bike kinda TV upahaar” in Dashain, Tihaar festive seasons are examples of price bundling.

3. Competitive pricing: Within this strategy businesses price products based on the price of competitive products or services, rather than cost or target profit; usually cheaper than competitors. In price sensitive markets such as Nepal this strategy is often used by small to big businesses. The examples of local businesses in Nepal using this strategy are:

• At the lakeside market in Pokhara, we can see salesmen of lodges pitching the lower price for their rooms and services than their competitors with commuting customers.
• In the local vegetable market, we often ask prices of those products from multiple vendors in hope the vendor owners lower the price than its customers and they do.
• Internet services, TV services, Telecom services, often bringing new lower priced subscription deals to cater the price of their competitors for the new customers.

Pricing and market positioning

Pricing and marketing positioning are intricately linked in a company's overall strategy. The price positioning strategies set a perception among customers regarding its brand and its product or service. It directly influences how consumers perceive the value and quality of a brand. Some effectively used price positioning strategies are:

• Premium pricing: Brands use premium pricing strategy to set a perception of luxury, exclusivity and quality of their product or services and brand as a whole. This strategy works well when a brand has unique offerings and high brand equity. Apple is the prominent example of using this strategy effectively. The brand’s equity, innovative features, and the prestige associated with owning an Apple product all contribute to Apple’s successful implementation of the premium pricing strategy.
• Value-based pricing: In this strategy, businesses set the price points of their product or service based on their perceived value rather than its historical price. Chinese phone brands segment their products in different categories such as budget. Example of this is Goldstar and Caliber brand, setting a perception of best value product for customer spending against the international brands such as Nike, Adidas, Erke etc.

Adapting prices to market changes

Market has several dynamic factors such as demand & supply fluctuations, consumer behavior, seasonality and trends, competitor pricing, inflations, government policies etc which influence business to tailor the price of product or services they offer. Examples of businesses adapting price according to market changes are:

• Businesses offer discounts on festive seasons which helps them increase revenue and cash flow, and clear stocks.
• We see petroleum and gas prices fluctuate in Nepal because of global demand and supply of such products.

It was a typical day of scrolling through my social media feed when a post by the Bagmati Province Youth Council about Youth Summit 2081 caught my eye. Intrigued, I visited their website, looked through pictures and videos of previous events, and felt excited. Without hesitation, I filled out the application form. As someone with less patience, I frequently checked the council’s website for updates on the selected participants. Finally, my persistence paid off, my name was listed. 

On Baisakh 27, full of hope and eager to learn and make new connections, I set off for Hetauda from Chitwan, where the summit was being held. I traveled alone in an electric vehicle, reflecting on the possibilities that lay ahead.

Upon reaching Hetauda and completing my registration, I walked from the hotel to the hall where the orientation session was taking place. Along the way, I had a delightful encounter with Aasta Dimdung, a genuinely nice person. As I entered the hall, I was pleasantly surprised to see familiar faces, Aasis Sapkota and Aashika Ojha, both law undergraduates whom I had met at a previous conference. Their presence eased my nerves, and as each attendee introduced themselves, I was impressed by the diverse backgrounds and shared commitment. It was a fascinating start to an enriching experience.

As the day progressed, the energy of the summit only grew stronger. The march to the venue was just the beginning. The opening ceremony featured a performance by Sindhuli Nach Ghar, and I was overwhelmed to see girls playing panche baja, giving me a sense that girls are truly empowering themselves. Once we were all gathered, the plenary discussions took center stage. These sessions were the heart of the summit, where speakers and attendees alike engaged in deep conversations about important topics.

The plenary discussions at the summit were a convergence of minds and expertise. Tikaram Yatri had a clever way of asking questions that made everyone think, while Sama Thapa wasn’t afraid to ask tough questions that got straight to the point. We talked about everything from politics to starting business in Nepal to how we can invest better in our country. Education was another big topic, we talked about the challenges it faces and how we can make it better. We also talked about the importance of digital skills in today's world and how everyone should have access to them. These sessions were elevated by the presence of distinguished individuals, each an expert in their field. Their insights and experiences were not just shared but integrated into a collective narrative that inspired action and thought. 

During the Bagmati Provincial Youth Summit, I had the pleasure of meeting some truly inspiring individuals. Among them, Shrinkhala Kadel’s presence was memorable; her radiant energy and laughter easily lit up the room. From the jolly Ajay Shah to the silent observer Ashmi Lohani, it was great to connect with attendees whose diverse perspectives enriched the experience. I also met wonderful people like Subarna, Yogesh, and many others, though I must apologize for my habit of not remembering names well.

The heritage walk was another highlight, where we explored Hetauda’s landmarks like the Bhutandevi Temple and Sahid Smarak. Despite a rainy start, the walk turned into a beautiful journey through our history and culture. But it was the cultural night that truly engaged us. As the moon peeked through the clouds, Pradip Rodan’s ghazal melodies filled the air, resonating deeply with everyone. And let’s not forget the dynamic duo, Prasuj Mainali and Bibhusha Basnet, the super-active hosts who brought the evening to life. Their energy was contagious, turning the cultural night into a celebration of unity and creativity.

The sessions with the Chief Minister Hon. Shalikram Jamarkattel were insightful, filled with meaningful discussions about our future. The privilege to directly interact with the Chief Minister was a highlight for many, including myself. The 13-point declaration presented by Executive Vice President of Bagmati Province Youth Council Mr. Santosh Chaulagain to the Chief Minister Hon. Shalikram Jamarkattel and Social Development Minister Hon. Kumari Moktan was a promising step towards progress. As the summit ended and we said our goodbyes, I felt a mix of sadness and hope. The connections made were deep, and the promise to meet again made the farewell a little easier. Returning home, I carried with me not just memories, but a renewed sense of purpose.

The Bagmati Provincial Youth Summit was more than an event. It was a promise, a promise to ourselves and to each other that we would be the change we wish to see in the district, province, country, and world. As I reflect on the past three days, I am filled with gratitude for the experiences shared, the knowledge gained, and the connections made.

Ayush Adhikari

In the depths of my soul lies a darkness,

A chaos that balances the world outside.

The concrete walls absorb the color of my being,

Leaving only black, in and out.

No palette to play with, no colors to paint,

Just the darkness consuming my very being.

Hope and reason seem far away,

As I surrender to the comfort of this void.

But I find solace in the darkness,

For in it, I can weep and be free.

No need to pretend, no need to act,

Just the darkness, the chaos, and me.

Life’s colors may not be mine to hold,

In the darkness, tears wave a tale of silent plight

Longing for the warm love and care that the inner child deserves,

For a touch so kind 

A tired heart seeks solace in the dark.

Pratikshya Aganja

In the quiet of solitude, I ponder alone,

Yearning for company, yet on paths of my own.

Friends beckon, laughter in their call,

But dreams whisper louder, urging me to stand tall.

A friend in need, a friend indeed they say,

But should I forsake my dreams, come what may?

In the dance of life, a delicate sway,

Between camaraderie’s warmth and ambitions fray.

Yet in the midst of this existential ride,

I find solace in dreams that I confide.

For in the pursuit of what my heart deems true,

I discover friendships anew.

So I'll walk this path, both bold and free,

Embracing dreams, wherever they lead me.

With friends by my side, laughter in the air,

I’ll chase my dreams, knowing they’ll be there.

Yusuf Shrestha 

BBM 7th Semester, United College