Price Objective:
Pepsi co the name known for controversies in the field of beverages and soft drinks in India. People will oppose against the company whenever they get a chance. But when a customer goes to a super market to buy a fruit juice the name Pepsi co will no more be a controversy but a brand. That is how the company has established itself in our country. These lines will stand to support the strategy behind the pricing of its products. A customer will hesitate to buy a product of Pepsi when they go for a price slash because of the price quality connotation. The company’s main objective in setting the price strategy is to maintain their established brand name. The target market which the company targets is also a reason behind this pricing
Competitor analysis:
The main competitor of Tropicana is Dabur’s real fruit juice.
Price of the product is Rs.10/- lesser than Tropicana(1000 ml pack)
Strategy behind pricing are positioning of the product, technology used and brand establishment of its parent company Dabur.
They position themselves as Real= No preservative, natural
Target market is not 100% urban.
Pricing method:
Value based pricing. Based on
Superior technology
Target market
Cost of distribution networks
Brand positioning
Final price:
The price can be reduced by Rs.5/- to increase the RPR. Current RPR
Bucket (1) - 17% (Awareness)
Bucket (2) – 11% (Consumption)
To increase the market share
Current market share of Tropicana – 37%
Current market shae of Real – 56%
Current price of Tropicana (1000ml) = Rs.85/-
Current price of Real (1000 ml) = Rs.75/-
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