Pricing Project

On

Consumers reaction to
variations in pricing for Real
fruit juice

Submitted to: Submitted by:

Dr. Ashok Arora Abhishek
Garikina Adivi Raju
Manideep D
Ujjwal Agarwal

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Table of Content

S.no Page no

1 INTRODUCTION 3

2 OBJECTIVE 3

3 RESEARCH METHODOLOGY 3

4 ANALYSIS 4

5 RECOMMENDATIONS 8

6 REFERENCES 8

7 APPENDIX 9

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1. INTRODUCTION:
Dabur Real Fruit Juice
Real Fruit has been the preferred choice of consumers when comes to packaged fruit juices.
Dabur Real juice is the product of Dabur Foods which in turn is a subsidiary of its parent
company Dabur India. Dabur India Limited (Dabur), a century-old company and well-known
brand in India in the health and wellness products, launched Real fruit juices in 1996.

Today Real Fruit Power has a range of 14 exciting variants in the fruit juice category -from
exotic Indian Mango, Mausambi, Guava & Litchi to international favorites like Pomegranate,
Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple &
Mixed Fruit. A wide range has been produced to cater to different needs and taste buds.

Our Product: Real Juice 1 litre

Price: Rs.100

2. OBJECTIVE:
The objective of this report is to find how consumer perception regarding pricing strategies like
the price of the product is increased, comparison with competitors and bundling of the product is
done.

3. RESEARCH METHODOLOGY:

Type of data: Primary data

Research instrument: The questionnaire was developed in order to meet the objective of the findings.

Sample Size: 53 customers were surveyed to know consumer perception regarding pricing
strategies.

Research techniques used: To achieve our objective, Data were analyzed using Microsoft Excel.

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4. ANALYSIS:

4.1. Buy Real Juice

Figure 1

From Figure 1, we observed that 77% of customers will buy Real juice of 1 litre for Rs.100 and
23% of customers don't buy the real juice.

4.2. Buy vs. Awareness

Figure 2

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From Figure 2, we observed that 92% of customers who bought Real juice were aware of the
price of the product and 8% of those were not aware. For those 8%, we can infer that those
respondents were ignorant towards price because the price is not the determining factor for the
purchase of Real juice.

4.3. How satisfaction with price.

Figure 3

From Figure 3, we see that 37% of the customers are satisfied and 32% are highly satisfied with
the pricing offering by Real juice for 1 litre. Less than 10% were dissatisfied with the pricing.

4.4. Price Elasticity:

The respondent’s willingness to pay for the Real juice is tabulated below, using which demand
curve can be found.

Willingness to No. of Respondents

pay

85 15

95 12

105 11

115 3

Total 41

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Demand Curve:

We observed that respondents are willingness of consumer decrease as the price of the Real juice
increases. We found that 12 respondents were willing to pay Rs.95, which is the actual price of
Real juice and 11 respondents were willing to pay Rs. 105 for the same Real juice. The revenue
of the company is calculated below in the table.

Price Quantity Revenue

95 12 =95*12 = 1140

105 11 =105*11 = 1155

We can see that fewer people are willing to purchase but the company makes more revenue of
Rs15 (Rs.1155 - 1140).
Also, the price elasticity is calculated below:

Demand Price Elasticity= (% change in quantity) / (%change in price)

% change in quantity = 1/12 = 0.0833
%change in price = 10/95 = 0.1052
= 0.0833 / 0.1052 = 0.791
The price elasticity is less than 1, hence we can conclude that price is inelastic

Strategy: The Brand can afford to increase the price of the product as it will make more revenue.

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4.5 Willing to buy bundled product.

Figure 4

From Figure 4, we observed that the majority of the customers i.e. 66% were not willing to buy 2
pieces in a bundle pack for Rs.180. And 34% were willing to buy the bundled product.

4.6. How Expensive is Real juice compared to others.

Figure 5

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From Figure 5, we see that 55% of respondents were mentioned that the Price of Real juice is
neutral when compared to other fruit juices.

4.7. Willingness to purchase 500ml or no willingness to purchase.

Real juice are available in 200ml for Rs.20 and 1litre for Rs.95. No 500ml pack is available. If,
500ml were launched its price should be Rs.47.5 (half price of 1litre). So we asked the
respondents whether if Real juice launch a 500ml for Rs.50. Will you able to buy?

500 ml -willingness to buy

500ml-not buy
29%

500ml- buy
71%

500ml- buy 500ml-not buy

Figure 6

From Figure 6, we observed that 71% of the respondents were willing to buy the product if the
price was Rs.50 and 29% respondents were unwilling to buy the product.

RECOMMENDATION:
1. Through the analysis, we know that 10% of the respondents were unsatisfied with the
pricing of Real juice but also, we found that the demand for the product was inelastic. So
Real juice can continue with the same pricing or even increase the price to 105. The
increase in price would reduce some consumers but also it will have more revenue.
2. The willingness to buy bundled product is low (66%) even though it is priced lower than
individual packs. Also, if we look in the report of “Consumer perception towards Non-
carbonated fruit juices” we found that B-naturals, one of the probable reasons of not
succeeding was that they were selling bundled products.
3. The respondents of the survey are prefer 500ml pack. And as there are no 500ml packs
available between 200ml to 1L, probably Real can use this opportunity to exploit the
market being the first mover advantage.

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REFERENCES:

(2019). Retrieved from Dabur: dabur.com/realfruitpower/about-dabur-real

APPENDIX
1. Do you buy Real juice of 1L at Rs.95?
Yes
No
2. Are you aware that real 1L juice is priced at Rs.95?
Yes
No
3. How satisfied are you with the pricing?

Highly Dissatisfied Neutral Satisfied Highly

Dissatisfied Satisfied

4. How much are you willing to pay?

● Rs.70 – Rs80
● Rs.80 – Rs.90
● Rs.90 – Rs.100
● Rs.100 – Rs.110
● Rs.110 – Rs.120
5. 1 real juice cost Rs.100. Will you be willing to buy 2 pieces in a bundle pack of price
Rs.180?
Yes
No
6. Compared to other fruit juices, how expensive do you think real juice is?

Inexpensive Somewhat Neutral Somewhat Expensive

Inexpensive Expensive

7. Will you be willing to buy a 500ml Real juice price priced at Rs.50?

Yes

No

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