The document discusses the pricing strategy and objectives of Frooti Products. It outlines 6 steps in setting prices: 1) selecting objectives like survival, profit, or market share, 2) determining demand and price sensitivity, 3) estimating costs, 4) analyzing competitors, 5) selecting pricing strategies like markup, value, or competition pricing, and 6) selecting the final price. Frooti aims for maximum market share and sets low prices from Rs. 5-15 targeting kids, teens, and low-income consumers. The company uses promotional pricing like discounts and sponsorships to adapt prices over time.

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.

10. Thank You