Please give the answer

After  acquiring the necessary knowledge and skills on starting an  Aloevera Farm, Ashok wanted to be
the leading manufacturer of Aloevera  products worldwide. He observed that the leading products were expensive as the demand of the products was more than the supply. He was also keen to promote methods and practises that were economically viable,  environmentally sound and at the same time protecting  public health.

Ashok's main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloevera products. He also thought that competitors prices and their anticipated reactions must also be considered for this.


After gathering and analysing information and doing correct marketing planning, he came to know that the consumers compare the value of a product to the value of money which they required to pay. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay.

Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run the business will not be able to survive unless all costs are covered in addition  to a minimum profit.

He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products.

The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition  most of the firms compete with each other on this concept in the marketing of goods and services.

(a) Identify the concept.
(b) Explain briefly any four factors discussed in the above case  related to the concept so identified.