"Skimming pricing policy is ideal for introducing a product in the FMCG sector." Justify for or against.

Against the statement — Skimming pricing policy is NOT ideal for introducing a product in the FMCG (Fast Moving Consumer Goods) sector. Reasons:

1. FMCG products are aimed at the masses and have highly elastic demand, meaning that the quantity sold is highly sensitive to price. A high initial price would discourage mass adoption.
2. The FMCG sector has strong potential competition with many substitute products available, so a high price would drive customers towards competitors.
3. Penetrating pricing is more suitable for FMCG products because it sets a low initial price to make the brand quickly popular and maximise market share. For example, 'Nirma' detergent powder used penetrating pricing to displace the higher-priced 'Surf' in India.