PRICING

Pricing is the process of determining what a company will receive in exchange for its products. Its a highly complex task and a lot of thought goes behind it. In such competitive markets like the ones we have today every rupee matters. Consumers unless they are brand loyalists might jump from one brand to another because of the smallest of margins. Prduct buying decisions are made keeping a lot of factors in mind, generally pricing being the most important.

Some factors to be kept in mind while deciding the pricing strategy.

·         Pricing objectives

·         Product cost

·         Extent of competition in the market

·         Customers demand and utility

·         Marketing methods used

·         Government and legal regulations

Find below the pricing of Frooti.                                         

     

 Tetra Pack packaging                   

                                    

Quantity	Price(Rs)
65ml	2.50
200ml	10.00
250ml	12.00

                                    

   PET bottle packaging

Quantity	Price(Rs)
250ml	10.00
500ml	18.00
1000ml	35.00
2000ml	60.00

              

Thus we see that Frooti isn’t only available in multiple quantities but also at a diverse price range.  Prices have been kept very affordable keeping in mind their target audience – kids and early teens. They prices are also slightly lower than their competitors Maaza, Slice, Tropicana and Real which is been to their advantage.

Frooti promotes the 65ml tetra pack priced at Rs 2.50 as ‘ 5 ka 2’ that implies 2 packs for Rs 5. This is a very smart gimmick. Seeing 2 packs for only Rs. 5 consumers get tempted and invariably buy 2 instead of 1. There is a high sense of customer value associated with this offer.