PRICING STRATEGY TO

AAKASH SHARMA, THE

OWNER OF COOL CREAM PVT.
LTD.
PRESENTED BY GROUP 7
GROUP MEMBERS
o D-17-12 Joyson Dias
o D-20-07 Ashwin Patre
o D-20-08 Cedric Lopes
o D-20-21 Nikhil Rane
o D-20-22 Omkar Mandrekar
o D-20-35 Shivam Kamat
o D-20-36 Shivam Goltekar
 CASE BRIEF
o A person named Aakash Sharma returned to India after completing his MBA
(marketing) from USA and bought a Cool Cream Pvt Ltd.
o Cool Cream Pvt Ltd is recognized as a manufacturer of finest ice-cream
throughout the country.
o Once upon a time he was suffering from throat infection due to his old habits he
asked his sister for some ginger juice.
o His sister, out of sympathy for her brother, mixed some ginger juice in a bowl of
ice-cream and he ate the innovative product with great delight.
 CASE BRIEF
o After returning back to the company he instructed the R&D centre to develop a
ginger ice cream named Adrak ice-cream.
o He thereafter called a meeting regarding the pricing strategy for Adrak Ice-cream.
o The concept of a ginger ice cream which would protect the throats of those who
relish ice cream was well received during the market test
o Current pricing suggestions
• Manager of Finance and R &D chief: The price should be cost plus 100%
profit.
• Sales Team: Low price at the time of introduction so that the product is
accepted in the market.

o The concerns relating to pricing

• Manufacturing manager: He was not willing to compromise quality to cut cost
• Purchase manager: Difficulties in buying and storing ginger
• R & D chief: The product will be copied and cool cream will loose the
advantage and investments in developing the idea.
 FORCES INFLUENCING THE
PRICING OF NEW PRODUCT –
ADRAK ICE CREAM
o There are five forces that influences to determine the pricing of innovative
products:
• Threat of intense segment rivalry (Very Low)
• Threat of new entrants (High)
• Threat of substitute products (High)
• Threat of buyers growing bargaining power (High)
• Threat of suppliers growing bargaining power (High)
 FACTORS INFLUENCING PRICING
DECISIONS OF ADRAK ICE CREAM
o External factors
• Competition
• Government
• Suppliers / channel members
• Buyers
• Demand
• Economic conditions
• Product stage in life cycle
• Market position of the firm
 FACTORS INFLUENCING PRICING
DECISIONS OF ADRAK ICE CREAM
o Internal factors
• Marketing mix
• Objectives of the firm
• Organizational factors
• Product differentiation
 RECOMMENDATION ON PRICING
STRATEGY
o Value Pricing Approach
• Ginger ice cream, it’s an innovation and was well accepted in the test market.
• Hence the customers will be willing to pay a premium for the same.
• Cool cream should keep product price higher then the regular ice cream to take
care of the increase cost and also the marketing cost.
• It will also have the first mover advantage to earn high profits and gain market
share before the innovation is duplicated.
 CONT…
• A high profit margin will enable them to cover the cost of innovation and R&D
at the launch phase only.
• A low price strategy at the launch phase will result in low profits as the cost of
production and marketing will be high.
• This will not cover the R&D cost as well as the additional storage cost.
• Also the marketing expenditure to create awareness of the innovation will also
wont get covered.
• Low pricing will not be a smart move at the launch phase.
CONT…
• Integrating Price with Other Marketing Mix Elements – Since the product is
superior and well accepted in test market, cool cream should invest in marketing
efforts to communicate the uniqueness to the potential customers.
• This will raise the perceived value of the ginger ice cream vis a vis normal ice
cream.
 CONCLUSION
• Pricing of Adrak Ice-cream should be at high level because it is manufactured by
the finest ice cream manufacturer Cool Cream Pvt Ltd. which is always known for
its quality products.