Pricing strategy:

Paper Boat has become the pioneer in the traditional drink space which was not targeted by many
companies. The products which Paper Boat is selling is as good as home made products. Paper Boat
is mainly competing with non-branded/generic products, so the pricing must be done wisely. Paper
Boat is competing against fresh fruit juice sellers who sell their products at Rs.10-Rs.25 while, Paper
Boat products are sold at Rs.20-Rs.35 depending on the size of the product. Paper Boat offers more
pulp than Slice, Maaza and Tropicana as well as Paper Boat drinks doesn’t have any preservatives.
Paper Boat has made a difference in the way their beverage is sold by connecting their consumers to
their childhood.

Paper Boat has used various pricing strategy such as: - Reference Pricing, Markup Pricing and
Penetration Pricing Method to promote its product in the market and gain profit at the same time
while keeping the competitors in their mind.

The pricing strategy of the Paper Boat is to keep the prices of the product lower or on par with the
competitors to attract more customers. The prices of various Paper Boat products are Rs.5, Rs.10,
Rs.15, Rs.20, Rs.25, Rs.30, Rs.35, Rs.80, Rs.85, Rs.90, Rs.95 and Rs.100.

Paper Boat Chikki is sold from Rs.5 to Rs.15 depending on the size of the Chikki. Paper Boat drinks
has more than 14 flavours which are packed in 3 different sizes of 200Ml., 250Ml. and 1L. The 200Ml.
single pack size is sold at Rs.20-Rs.25 and the 250Ml. single pack size is sold at Rs.30-Rs.35. the 1L.
pack is sold at Rs.80-Rs.100.

The main competitors are:

1. Tropicana 100% - The 200 ml pack is priced at Rs.30 whereas the 1l pack is priced at Rs. 120.
2. Maaza - The 600 ml pack is priced at Rs.35 whereas the 1.2l pack is priced at Rs. 65.
3. Slice - The 600 ml pack is priced at Rs.35 whereas the 1.2l pack is priced at Rs. 65.
4. Dabur’s Yoodley - The 250 ml pack is priced at Rs.30.
5. Real - The 200 ml pack is priced at Rs.20 whereas the 1l pack is priced at Rs. 110.
6. Frooti - The 600 ml pack is priced at Rs.35 whereas the 1.2l pack is priced at Rs. 64 and the
2.25l pack is priced at Rs.100.
7. Minute maid - The 250 ml pack is priced at Rs.20 whereas the 1l pack is priced at Rs. 75.
8. B Naturals - The 200 ml pack is priced at Rs.30 whereas the 1l pack is priced at Rs. 100.
As we can see in the flow chart above, the prices set by Paper Boat is quite affordable when
compared to its competitors. Paper Boat products has great taste, no preservatives and an
emotional appeal because of the unique flavours.