Pricing Management Group Assignment

Submitted By: Adersh Panigrahi (U109003) Karan Kunal (U109023) Nishit Ganatra (U109031) Vikas Gautam (U109100) Sushma Rao (U109145) Varun Agarwal (U109148)

Product Category:

HAIR OIL
Brands:

y y y y y y

Parachute Hair & Care Vatika Navratna Dabur Amla Bajaj Almond

00 39. Then an average of each attribute-brand score was taken to get the score for each brand comprising of all the attributes taken together. Navratan 83 S e l 73 l i Dabur Amla Avg Value Bajaj Almond Methodology The respondents were asked to rate various attributes of a hair-oil namely: nourishment. Then they had to rate the performance of each brand on each attribute so that brand -specific attribute weight is determined.00 43. herbal additives & anti-dandruff properties.00 42. They had to first rate these attributes independently on a scale of 10 so as to come up with the independent weights for each attribute.     g 63 Hair & Care Vatika P r 53 i c e 43 Parachute 33 34. The slope of the fair-value line was obtained by getting the average selling price of all the brands and the average of the perceived benefit. The selling prices of these brands formed the ordinate on the above line.00 37.00 35.00 38. fragrance. This formed the perceived benefit value for each brand. Inferences & Recommendations: y Navaratan formed to be an outlier with a high perception of price and low perceived benefit by the consumer. Since Navaratan currently is a market leader by leaps and bounds.00 40. Thus the line was drawn. After determining the above 2 metrics.00 Perceived Be efit 41.00 . they were multiplied so as to come up with the perceived value of each attribute for each brand. non-sticky.00 36.Fair Value Line Fair Value Line represents a plot between the perceived benefit and the selling price of the product. it isn t hurting to charge such a high premium but it will soon have to consider either dropping prices or increase product quality.00 44.

5/Point of marginal Expensiveness: Rs 50/- Too Cheap Point of Marginal Cheapness: Rs 45/Optimal rice oint: Rs 47/¡ ¡ . but you would have to give some thought to buying it? (Slightly Expensive) 4. Van Westendorp: Price Sensitivity Meter In order to determine the optimal price point. At what price do you perceive the product to be a bargain a great buy for the money? (Bargain) On the basis of responses to these questions. At what price do you perceive that the product is beginning to get expensive. At what price do you begin to perceive the product as so expensive that you would not consider buying it? (Too expensive) 2. the respondents were asked the following price related questions for each product: 1.y y Parachute again enjoys extremely high perceived benefits vis-a-vis the price it charges and it is due to the robust distribution network of Marico that even though with such a low price premium. so that it is not out of the question. The other brands managed to be in the vicinity of the fair-value line which tells that right now their offerings-perception with respect to the price they are charging is not to be worried. At what price do you begin to perceive the product as so inexpensive that you would feel that the quality cannot be very good? (Too cheap) 3. Parachute has been largely successful. cumulative distributions were derived and plotted as shown below: Parachute: 150% 100% 50% 0% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Too expensive Too cheap Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 47.

Hair n Care: 150% 100% 50% 0% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Too expensive Too cheap Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 62.5/Optimal rice oint: Rs 60/- .5/- Too Cheap Point of Marginal Cheapness: Rs 53.5/- Too Cheap Point of Marginal Cheapness: Rs 57.5/Point of marginal Expensiveness: Rs 67.5/Optimal rice oint: Rs 62/¢ £ ¢ £ Vatika: 120% 100% 80% 60% 40% 20% 0% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 57/Point of marginal Expensiveness: Rs 63.

5/Optimal rice oint: Rs 65/- .Navratan: 120% 100% 80% 60% 40% 20% 0% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 80/Point of marginal Expensiveness: Rs 87/Too Cheap Point of Marginal Cheapness: Rs 60/Optimal rice oint: Rs 81/¤ ¥ ¤ ¥ Dabur Amla: 120% 100% 80% 60% 40% 20% 0% 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 65/Point of marginal Expensiveness: Rs 72/Too Cheap Point of Marginal Cheapness: Rs 57.

it is within the range of acceptable prices as per the consumer responses. 5. The current price being charged by Navratan (Rs 85) is higher than the Optimal Price (Rs 81) for that brand.5 to Rs 75 Rs 62 Rs 57. 2. The current price being charged by the other brands is lower than the optimal price determined on the basis of consumer responses. .5 to Rs 63. The range of acceptable prices (Point of marginal cheapness to Point of marginal expensiveness) is the widest for Navratan. The current price being charged by Parachute is lower than the price at which consumers find it to be too cheap (Point of marginal cheapness). Rs 67 to Rs 87. i.e. The current price being charged by Dabur Amla is closest to the optimal price point for that brand. 4.5 to Rs 72 Bajaj Almond Rs 67 Rs 70 Rs 62.Bajaj Almond: 150% 100% 50% 0% 0 10 20 30 40 50 60 70 80 90 100 110120 130140 150 Bargain Slightly Expensive Too Expensive Indifference Price Point: Rs 69/Point of marginal Expensiveness: Rs 75/Too Cheap Point of Marginal Cheapness: Rs 62. Parachute should increase the price of its hair oil to clear the doubts in the consumer s mind regarding its quality.5 Navratan Rs 85 Rs 81 Rs 67 to Rs 87 Dabur Amla Rs 66 Rs 65 Rs 57.5/Optimal rice oint: Rs 70/¦ ¦ Based on the frequency distribution graphs we can tabulate the optimal price for the 5 brands as shown below: Current rice Optimal rice Range of Acceptable rices ¨ § § arachute Hair n Care Rs 39 Rs 60 Rs 47 Rs 45 to Rs 50 § Dabur Vatika Rs 55 Rs 60 Rs 53.5 to Rs 67.5 Observations and Recommendations: 1. 3. However. Hence.

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