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Brand Price Trade OFF


Amul bottled Coconut Water (Health Drink )- 300
Respondent

Quality

Affordability

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

8
5
3
13
1
3
3
4
3
12
5
3
5
8
3
2
3
3
3
4
1
1
1
13
8
3
8
8
15
3
5
5
5
3

14
8
8
14
8
14
8
13
8
16
12
10
9
14
12
8
8
8
8
12
8
12
9
8
14
14
14
14
4
14
10
14
8
14

35
36
37
38
39
40
41
42
43
44

3
3
8
5
3
3
3
3
8
8

13
8
14
14
9
14
8
8
14
14

Water (Health Drink )- 300 ml Bottle


Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Code

Price (Rs)
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
16.00
17.00
18.00
19.00
20.00
21.00
22.00

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Quality Frequency
20
18
16
14
12
10
8
6
4
2
0

Quality
4.55 2.27

10

12

Quality

18.18

2.27

4.55 2.27
9.09

2.27
40.91

15.91
4.55

Analysis:

Alternate Analysis:

Conclusion:

10

11

12

13

14

15

Quality: As can be seen from the scatter plot and the pi


Any respondant will not select any price more than this
Affordability: As can be seen from the scatter plot and t
Any respondant is willing to pay this as the maximum pr
When both quality and affordability are considered, the
The pricing can also be done by gathering the cost struc
All these products have advertising and marketing as th
Since Amul coconut water is a newly lauched product, c
So a "Cost plus Pricing" strategy should be adopted by Am
coconut water is Rs. 12, including the fixed cost and va
From both the analysis, we can conclude that Amul Tend
structure leads us to the same conclusion. As can be ob
factor. So the optimal price for Amul Tender Coconut wa

Quality Frequency

Percentage contribution
4
1
18
2
7
0
0
8
0
0
0
1
2
0
1

9.09
2.27
40.91
4.55
15.91
0.00
0.00
18.18
0.00
0.00
0.00
2.27
4.55
0.00
2.27

Affordability Frequency
18
16
14
12
10
8
6
4
2
12

14

16

Affordability
2

10

12

Affordability
2
36

34

12

13

14

15

10

11

12

13

scatter plot and the pie chart, the maximum frequency occurs at code 3, 5 and 8.
y price more than this for a given level of quality.
m the scatter plot and the pie chart, the maximum frequency occurs at code 8 and 14.
his as the maximum price for the product.
ity are considered, the combined frequency is 18 for code 3, 23 for code 8 and 16 for code 14.
athering the cost structure of competing products such as Coca Cola, Pepsi, Real Juice, Tropicana, etc.
ng and marketing as their main component of cost. They also enjoy a very high margin over and above their cost.
wly lauched product, charging a very high premium will not allow high sales and market penetration.
hould be adopted by Amul to price their coconut water. Let us assume that the Cost per unit for Amul tender
g the fixed cost and variable cost (including wages, salaries, advertising, distribution and other expenses).
onclude that Amul Tender coconut water should be priced at Rs. 15 as both the potential consumers' survey and co
nclusion. As can be observed from the charts above, Rs. 15 (code 8) takes into consideration both the Quality and
mul Tender Coconut water is Rs. 15.

Affordability Frequency

Percentage contribution
0
0
0
1
0
0
0
15
3
2
0
4
2
16
0

0
0
0
2.27
0
0
0
34.09 (Optimal)
6.82
4.55
0
9.09
4.55
36.36
0

Affordability Frequency

Affordability
2

10

12

14

16

Affordability
2
36

34

10

11

12

13

14

15

code 3, 5 and 8.

rs at code 8 and 14.

r code 8 and 16 for code 14.


ola, Pepsi, Real Juice, Tropicana, etc.
y a very high margin over and above their cost.
high sales and market penetration.
ume that the Cost per unit for Amul tender
tising, distribution and other expenses).
5 as both the potential consumers' survey and cost
8) takes into consideration both the Quality and Affordability

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