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Ditch the discounts


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Harvard business case review- Assignment 4

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Ditch the discounts

  1. 1. Ditch The DISCOUNTS
  2. 2. Competitors respond by lowering their prices even more, triggering a price war
  3. 3. Dr in LPG cylinder prices brings joy for homemakers
  4. 4. LPG price rises by Rs 3
  5. 5. Shock or dismay experienced by the potential buyers of a particular product on discovering its high or increased price.
  6. 6. Adaptive pricing is a pricing strategy in which businesses set highly flexible prices for products or services based on current market demands.
  7. 7. Adaptive pricing vs Static Pricing
  8. 8. Aavin is the trademark of Tamil Nadu Co-operative Milk Producers' Federation Limited, a Tamil Nadu- based milk producer's union. Aavin’s Adaptive pricing strategy
  9. 9. Aavin produces 4 varieties of milk: Toned Milk (3% fat) Doubled toned milk (1.5% fat) Standardized Milk (4.5% fat) Full Cream Milk (6% fat) Aavin’s Adaptive pricing strategy
  10. 10. How to price in a recession ?
  11. 11. Introduce Lower-Priced Versions Use promotions to avoid price drops Adapt products to maintain affordability Unbundle services and add extra fees
  12. 12. How to price in a recovery ?
  13. 13. Withdraw recession-pricing tactics Introduce new premium products Increase the price of regular products Offer new ways to experience luxury
  14. 14. Offering “Good”,”Better” and “Best varities”
  15. 15. Most affordable Car- Tata Nano
  16. 16. The Nano's design implements many measures to reduce manufacturing costs.
  17. 17. FY 2009–2010 30,000 FY 2010–2011 70,432 FY 2011–2012 74,527 FY 2012–2013 53,848 FY 2013–2014 10,202 Sales Figures:
  18. 18. Adaptive pricing in the fast food industry
  19. 19. Able to survive in the market due to consistent changes in flavors and giving away freebies for purchases
  20. 20. Amma Unavagam (meaning "Mother Restaurant" in Tamil) is a food subsidization program run by the Government of TN.Chief Minister Ms. J. Jayalalithaa introduced this restaurant concept aimed at helping the very poor sections of the society.
  21. 21. Amma Canteen introduced meal at lower prices and in spite getting high revenue, was not able to make profits.
  22. 22. Price analysis of an Idly made in Amma Canteen
  23. 23. Hyndai Assurance Program
  24. 24. provides discounts everyday based on the department to attract customers to it’s site everyday
  25. 25. Declaration • Created by Divya Agarwal, VCE Hyderabad. Under the internship by Prof. Sameer Mathur, Iim Lucknow.