Case Study Analysis

Pricing Strategy
Group 5

Anant Mangla
Rupal Dixit
Shivangi Dhobal
Surabhi Shanbhag
Utkarsh Kalra
Vartika Dixit
Vasu Kaushal
Assume that Covid-19 vaccine buyers (i.e., national
governments) in 2020 have set an internal ceiling
price for their vaccination programs. What should
the SII do in terms of planning for the launch of its
Covishield vaccine?
SII was licensing the formula from AstraZeneca, and owing to
the pandemic, WHO had made the knowledge and research
sharing a mandate.

Due to the licensing, SII had saved a significant chunk of money

on the R&D.

Johnson and Johnson put a price cap of $10 for mass distributed
vaccines which added to the butterfly effect.

Due to the widespread pandemic, pricing should have been

kept at the bare minimum as a humanitarian aid

GOI was going to be the biggest buyer, so the ceiling price won’t
effect too much.

Covishield, due to the progress made by AstraZeneca, was on its

way to become the first approved vaccine in India, which would
mean that the vaccine takers for two doses would be higher
(first mover advantage)
Pricing Strategy:
Govt. of India is the primary buyer, with option of selling to private
hospitals and state governments separately.

Price ceiling of Rs. 780 was fixed by Govt. of India

SII now has a decision to make on the pricing of the vaccine shots
Population: 150 crores
Vaccines required: 300 crores
Monthly prod: 250-270 mil
Price Ceiling: INR 780

This means that the first mover and

subsequent entrants cannot price
their vaccines at any price above
INR 780
 SII can follow a 3-fold pricing strategy:

Indian Private International

Market - Market -
Govt. of India -
Skimmed Pricing Dynamic Pricing
Economy Pricing
+ Economy + Economy
Pricing pricing

Order Winner Order Qualifier