Pricing of innovative products

PRICING OF INNOVATIVE PRODUCTS

CASE STUDYA person named Somesh Sharma

returned to India after completing his MBA (marktng) from USA and bought a Cool Cream Co. recognized as a manufacturer of finest icecream throughout the country.

Once upon a time he was suffering from throat infection due to his old habits he ask his sister to gave a ice-cream

With ginger juice.

CONTD..

Somesh ate the innovative product with great delight. After returning back to the company he instructed the R&D centre to develop a ginger ice cream named ADRAK ICE CREAM.

Somesh thereafter called a meeting regarding the pricing strategy for ADRAK ICE CREAM.

PRICING OF INNOVATIVE PRODUCTS

It means to all the decisions, techniques and

methodology that is required to price a new

product that has been launched in the market.

FORCES INFLUENCES THE PRICING OF NEW PRODUCT-ADRAK ICE CREAMThere are five forces that influences to

determine the pricing of innovative products:

Threat of intense segment rivalry Threat of new entrants Threat of substitute products Threat of buyers growing bargaining power Threat of suppliers growing bargaining

power.

IDENTIFYING THE COMPETITORS It is not a simple task to identify the

competitors. Because in the market there are companies like Kwality Walls, and Vadidal are the two biggest companies already exists in the market with there several varieties. So introducing a new product adrak ice cream under Cool Cream Co. is a tough job.

There are several practices undertaken by these companies to prevail in the market.

An industry is a group of firms that offer a product or class of products that are close substitutes for one another.

ANALYZING COMPETITORS Stategies A group of strategic events undertaken to have a stake in the market.Eg: Introducing Adrak Icecream at a optimum price. ObjectivesOnce a company has identified its main competitors and their strategies, it must ask: what is each competitor seeking in the marketplace ? What drives each competitor’s behavior? Many factors shape a competitor’s objectives, including size, history, current management and financial situation.Eg: Attracting the customers towards the Ice cream

by showing the benefits and the taste.

FACTORS INFLUENCING PRICING DECISIONS OF ADRAK ICE CREAM Two types :

1. External factorsa) Competitionb) Governmentc) Suppliers / channel membersd) Buyerse) Demandf) Economic conditionsg) Product stage in life cycleh) Market position of the firm

2. Internal factorsa) Marketing mixb) Objectives of the firmc) Organizational factorsd) Product differentiation

ADRAK ICE CREAM - TASTY & HEALTHY

CONCLUSIONPricing of Adrak Icecream 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

THANK U……….!