SlideShare a Scribd company logo
Frooti Products
Rs 47/Rs 27/-

Rs 65/-

Rs 15/-

Rs 12/-

Rs 5/-
Setting price

Step 1: Selecting the Pricing Objective
Major objectives:
• Survival : Company are in trouble with intense
competition & changing consumer wants.
• Maximum current profit: Parle have tried to set
a price that will maximize current profits. i.e.
starting from Rs. 5/• Maximum market share : Company want to
maximize their market share by rebranding the
Frooti in market.
• Product-quality leadership: the Frooti brand is a
strong brand in the market to maintain that they
have to continue with their services.
Step 2: Determining Demand
• Price sensitivity: Parle Agro company
came up with tetra packs that start from
Rs. 5/- which makes small kids buy that
product because it is affordable.
Step 3: Estimating Costs
• Demand sets a ceiling on the price the
company can charge for its product.
Step 4: Analysing Competitors’ Costs, Prices,
and Offers
Price: 12/-

Price: 15/-

Target market: kids,
teenagers, youths,
adults and also for
the low income
consumers

Target market:
teenagers and
youth

Price: 12/Target market:
teens, women
and children
Step 5:Pricing strategies

• Mark-up Pricing: e.g. The small Frooti pack selling
price is 5/- but the actual manufacturing price is
2.50/• Value pricing: the brand Frooti is there since many
years and they have set their target market as low
income groups, kids etc. and they are successfully
doing their job.
• Penetration Pricing: the Parle Agro initially
introduced with a low price to increase sales and
market share. Now they are keeping on increasing
their price.
• Competition Pricing: Have set a price in comparison
with their competitors.
• Product Line Pricing: they have priced their products
same products in different millilitres and different
prices.
• Reference Pricing: the company have set their prices
according to the customers buying ability to achieve
their marketing goals.
Step 6: Selecting the Final Price
Pricing methods narrow the range from
which the company must select its final
price.
Adapting the Price
Promotional Pricing:
• Loss-leader pricing: supermarkets offer
special offers like buy 1 2000ml bottle
and get 1 tetra pack 200ml free.
• Special customer pricing: Give sponsors
for children related events or shows.
Initiating and Responding to Price
Changes

Initiating Price Cuts:
• Low-quality trap: Consumers assume
quality is low the mango juice is thinner
compared to before.
Responding to Competitors’ Price Changes:
• Frooti is trying to rebrand its product by
endorsing Shah Rukh khan as their
brand ambassador.
Thank You

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Frooti

  • 1.
  • 2. Frooti Products Rs 47/Rs 27/- Rs 65/- Rs 15/- Rs 12/- Rs 5/-
  • 3. Setting price Step 1: Selecting the Pricing Objective Major objectives: • Survival : Company are in trouble with intense competition & changing consumer wants. • Maximum current profit: Parle have tried to set a price that will maximize current profits. i.e. starting from Rs. 5/• Maximum market share : Company want to maximize their market share by rebranding the Frooti in market. • Product-quality leadership: the Frooti brand is a strong brand in the market to maintain that they have to continue with their services.
  • 4. Step 2: Determining Demand • Price sensitivity: Parle Agro company came up with tetra packs that start from Rs. 5/- which makes small kids buy that product because it is affordable. Step 3: Estimating Costs • Demand sets a ceiling on the price the company can charge for its product. Step 4: Analysing Competitors’ Costs, Prices, and Offers
  • 5. Price: 12/- Price: 15/- Target market: kids, teenagers, youths, adults and also for the low income consumers Target market: teenagers and youth Price: 12/Target market: teens, women and children
  • 6. Step 5:Pricing strategies • Mark-up Pricing: e.g. The small Frooti pack selling price is 5/- but the actual manufacturing price is 2.50/• Value pricing: the brand Frooti is there since many years and they have set their target market as low income groups, kids etc. and they are successfully doing their job. • Penetration Pricing: the Parle Agro initially introduced with a low price to increase sales and market share. Now they are keeping on increasing their price. • Competition Pricing: Have set a price in comparison with their competitors. • Product Line Pricing: they have priced their products same products in different millilitres and different prices. • Reference Pricing: the company have set their prices according to the customers buying ability to achieve their marketing goals.
  • 7. Step 6: Selecting the Final Price Pricing methods narrow the range from which the company must select its final price.
  • 8. Adapting the Price Promotional Pricing: • Loss-leader pricing: supermarkets offer special offers like buy 1 2000ml bottle and get 1 tetra pack 200ml free. • Special customer pricing: Give sponsors for children related events or shows.
  • 9. Initiating and Responding to Price Changes Initiating Price Cuts: • Low-quality trap: Consumers assume quality is low the mango juice is thinner compared to before. Responding to Competitors’ Price Changes: • Frooti is trying to rebrand its product by endorsing Shah Rukh khan as their brand ambassador.