This document analyzes the pricing strategies of Visakha and Heritage milk brands in Rajahmundry, India. It discusses the objectives, methodology, limitations, theoretical framework, pricing factors, decision-making process, comparative prices, data analysis, findings, suggestions, and conclusion of the study. The study found that most consumers preferred Visakha milk due to its reasonable prices, quality, freshness, and availability compared to Heritage milk. It was suggested that both companies focus on low-income customers and introduce more affordable product options.

1. “PRICING STRATEGIES OF VISAKHA
AND
HERITAGE MILK”
Under the esteemed guidance Of
Dr. P R K RAJU
Submitted by,
A.N.V.RAVANAMMA,
13551E0003.

2. CONTENTS
Introduction of the Study
Objectives of the Study
Need of the Study
Scope of the Study
Methodology of the Study
Limitations of the Study
Theoretical framework
Introduction to pricing strategy
Pricing factors
Types of pricing strategy
Decision of price
Data analysis and interpretation
Findings
Suggestions
Conclusion

3. INTRODUCTION
 Kotler had defined the marketing as “the social process by
which individuals and groups obtain what they need and want
through creating and exchanging products and value with
others”.
 The Chartered Institute of Marketing (CIM) has given
the definition for marketing as “marketing is the
management process that identifies, anticipates and
satisfies customer requirements profitably.”

4. IMPORTANCE
 Marketing focuses on the satisfaction of customer needs,
wants and requirements.
 The philosophy of marketing needs to be owned by
everyone from within the organization.
 Future needs have to be identified and anticipated.
 There is normally a focus upon profitability, especially in
the corporate sector. However, as public sector
organizations and not-for-profit organizations adopt the
concept of marketing, this need not always be the case.

5. OBJECTIVES
 To study the pricing strategies of heritage and
visakha milk.
 To collect required primary and secondary data for
the study.
 To analyze the collected data and interpret the
result.
 To understand the practicality of marketing
concepts.
 To experience practical knowledge on marketing.

6. NEED OF THE STUDY
 which in turn help in enhancing pricing strategies
and prevent dissatisfaction. Which include a study
of various factors include process, quality,
availability, packaging, taste usage time etc.
SCOPE OF THE STUDY
o My study mainly covers the pricing strategies of
heritage milk and visakha milk. It was mainly deals
with the pricing, quality and freshness of the milk
provided in the packets in Rajahmundry.

7. METHODOLOGY
It consists of two phases they are
 Data collection
 Data analysis
SAMPLING
1. Sampling Technique : Non probability
sampling
2. Sample Unit : People who buy milk
available
3. Sample size : 20 respondents
4. Method : Direct interview
through questionnaire.
5. Data analysis method : Graphical method.
6. Rate of Respondents : 16(80%)

8. LIMITATIONS
 The duration course of the study is low.
 The scope of the study is only consumers of
Rajahmundry.
 The study considered only the consumer that
belongs to the milk usage only, and that to in
Rajahmundry.
 The study is confined to particular segment of
customers only

9. INTRODUCTION TO PRICING STRATEGY
 PRICING:
It is the process of determining what a company will
receive in exchange for its product or service.
 STRATEGY:
A method or plan chosen to bring about a desired future,
such as achievement of a goal or solution to a problem.

10. PRICING STRATEGY:
A business can use a variety of pricing strategies
when selling a product or service. The Price can be set to
maximize profitability for each unit sold or from the market
overall. It can be used to defend an existing market from
new entrants, to increase market share within a market or to
enter a new market.
PRICING FACTORS:
1. Fixed and variable costs.
2. Competition
3. Company objectives
4. Proposed positioning strategies.
5. Target group and willingness to pay

11. Types of Pricing Strategy
Penetration Pricing
Skimming Pricing
Optional Pricing
Cost Based Pricing
Value based pricing

12. PRICING DECISION MADE
The price variable in the marketing mix is a critical
element. Most consumer’s link price with quality and there
are many organizations that carefully reinforce the quality
of their product, using price as a surrogate cue (or
substitute indicator) for quality
 These Factors are as follows:
a. Supply (or cost)
b. Demand (or revenue)
c. Perceptions in the marketplace
d. Competition and Competitors. Pricing strategies
e. Government Regulation
f. Company’s desired pricing position

13. SETTING THE PRICE
Selecting
the pricing
objective
Determining
demand
Selecting
the final
pricing
Estimating
cost
Analyzing
Competitors
’ Costs,
Prices, and
Offers
Selecting
a pricing
method

14. COMPARATIVE PRICES
Prices of milk:
Quantity(ml) Visakha price Heritage price
250 10 12
500 22 24
1ltr 45 48

15. DATA ANALYSIS
1) Do you think the price is reasonable?
Percentage(%)
Yes
No

16. 2) Do you satisfied with the quality of packed milk?
Percentage(%)
Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied

17. 3) What do you think of the price?
percentage(%)
high
Very high
Moderate
low

18. FINDINGS
 Most of them prefer packet milk.
 500ml of milk packets were preferred mostly.
 Most of the people ranked the packed milk as good.
 Mostly people use packed milk due to moderate price.
 People prefer packed milk due to quality.
 People mostly consume visakha packed milk due to
availability and freshness of milk.
 Most of the consumers are purchasing 1ltr quantity of milk
per day.
 Consumers were satisfied for reasonable price of milk.
 Most of the consumers were aware of packet milk.
 Most of the people using current milk brand during 6 months -
2 years.

19. SUGGESTIONS
 Income of the people decides the purchasing and pricing power. The
high income prefers to purchase product with the quality, freshness,
thickness, etc. and vice versa. So, we suggest milk dairies to
concentrate also on low income segment to capture market and
position themselves in the minds of the customer with required
quality and quality milk.
 Milk is having high demand and it is considered as a very essential
products. In present practice, purchase of milk is through dealers. In
this connection dealers approach towards the product. So, dealers
should be available at any time.
 Introduction of various economic products lies may help milk dairy
to attract the existing and new customers and may attract all income
level groups. Hence we suggest management to introduce new
product line which can satisfy the entire group.
 It is suggested that visakha dairy can increase the demand of the
milk through the initiative of giving milk in mini packets of small
quantities for 5-6rs in order to retain customers from low-income
groups.

20. CONCLUSION
 Finally I conclude that, majority of people prefer Visakha
milk and Milk products because of its quality, freshness, price
and easily available. Some consumers are not satisfied by the
heritage milk because of high price and not available easily
and the heritage is a food limited so it mainly focus on food
products.
 So, Visakha milk is preferred for the consumers and they were
very easily consuming this milk product with reasonable
price.