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Atlantic Computers – A Bundle of Pricing Options:

Atlantic Computers is manufacturer of servers and other high-tech products. It was the largest
player in the server market with its high-performance servers. To capture the basic server
segment, they were introducing a new server called, Tronn. There is a new software tool
developed by the company, Performance Enhancing Server Accelerator (PESA), which
would allow the Tronn to perform four times faster than its standard speed. The company
wanted to sell the Tronn server along with PESA as “Atlantic Bundle”. The entire case
focuses on the various types of pricing strategy that the management can select from that
would make them competitive in the market. The 4 pricing strategies are as follows:
 Atlantic Computers can continue their current strategy and give PESA free with
Tronn Server.
 Competitive pricing strategy, by charging the price of four Ontario Zinc servers (the
speed of Tronn with PESA is equivalent to four Zinc servers)
 Arriving at a cost based on a cost-plus approach to pricing PESA (based on its
development cost).
 Arriving at a cost based on value-in-use pricing, focusing on the customers cost of
owning a server.

Hence through this case the basic objective and takeaway was understanding the various
types of pricing strategies and how one strategy differs from the other and could have a major
impact on the revenues as well as the standing of a company in the market. Through this case
it was analysed how exactly a pricing strategy could have an impact on the customers as well
as the competitors.

Cumberland Metal Industries – Engineered Product Division, 1980:

Cumberland Metal was one of the largest manufactures of curled metal in the 1970’s as they were
able to obtain 80% of the market. This boost was due to the release of the exhaust gas recirculation
valves. However, the company was not particularly optimistic about keeping the market share,
therefore the chose to draw back from the on this product and instead introduce the new CMI pad
used for pile driving. Consumers in that period were using products like Asbestos pads as a
substitute which performed adequately but now holds inferior to the future CMI pads. Through the
case it was understood that the management was needed to create a differentiation in the market in
terms of what it offers as well as in terms of the pricing strategy. Through this case the various types
of pricing strategies were understood and how they had a direct impact on the profits. The 3 types
of pricing strategies were as follows:

 Cost-based
 Value-based
 Competitive parity

Hence the key takeaway from this case was the knowledge of the 3 pricing strategies as well as its
impact on the company and the market. It gave a brief idea as to how a company deals with a
product launch that is unique in nature and plans as the competition intensifies in the market.
Rohm & Haas – New Product Marketing Strategy:

Rohm and Haas a diversified chemical company operating in four distinct business segments
of which the focus of the case is on biocide products division of the specialty chemicals
group. The company found a new opportunity in the Individual system
Market and they have launched a new product – Kathon MWX to address this opportunity.
The targets for the product were 150,000 customers and a revenue of $200,000 in the first
year. However, the actual sales revenue was only $12,000 in the first five months. Other
issues that set forth for the organisation was that a large part of the target customer base use
substitute products such as deodorants and bleaches which in general have little effect on
microorganisms. Hence it was seen through the case that the target audience was unaware of
the product. The key takeaways from the case was to understand and introspect the existing
marketing plan that was incorporated by the company and how exactly improvements could
be made in order to achieve the desired targets. Along with that the case also gave us a brief
understanding in differentiating the marketing strategy obtained in terms of B2B & B2C. An
organisation is required to make the necessary changes to their marketing strategy in case of
B2C otherwise as seen in the case even though the product is highly efficient the targets
would not be achieved.

Soren Chemicals – Why is the New Swimming Pool Product Sinking?


Soren Chemical is the company that produces Coracle, targeting the residential pools
segment. Jen Moritz is the marketing manager in the Water Treatment Products department.
She is responsible for the sales target set for Coracle. Jen Moritz major problem is to increase
the sales to exceed the target. The major issue faced by the company is in terms the
distribution channel. The company being a regular in the B2B market followed the same
channel with the same percentage of commission rates for the distributors. The company
introduced the product under its own label and to attract distributors to sell and market the
product they needed to make necessary changes to their distribution policies. Other than they
faced an issue in terms of their promotional activities as it was seen that their efforts were not
targeted towards the end consumers. Hence through this case it was understood the difference
between the distribution approach for B2B & B2C products. Along with that it was seen that
companies need to make certain adjustments in their pricing strategy to accommodate the
distribution channel. Through this case the importance of brand building was understood
while catering in the B2C market.

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