COCONUT

WATER
SOLUTION
The price we have arrived upon would be rs. 60 per 200ml. We are
using penetration strategy and thus pricing the product at lower
price. our competitors products are priced at an average of rs.50
but since our product doesnt contain any preservatives and is cold
pressed it will attract those customers who are health conscious.

SHOULD THE LAUNCHING PRICE BE

DIFFERENT
Yes i think the launching price should be lower, this is because the
competitors provide similar prodcts and not providing it at a
lower price would lead for the consumer to choose their product
over ours, therefore we should use penetration strategy and
introduce the product at lower price. However after capturing
market share we can increase the prices.
HOW WE ARRIVED TO THAT SOLUTION

1.Decide the objective

Our main objective is to maximise market share therefore
initially we'll price our product at a lower price. We'll use
penetration strategy in order to gain the market share and price
our product at a lower price lateron we can increase the prices.

2.Demand estimation
Availability of substitutees - Since the coconut water has many
substitutes the price is elastic that is change in the price of the
good will lead to change in demand. Even though coconut water
is price elastic its elasticity is low as the consumer expense on the
good is really less and only a small part of their income.

3. Estimating costs:
• Manufacturing cost: About Rs 50 per 200 ml bottle.
• Whole sales price: rs.53
• MRP of the product: Rs.60
4. Analyse competitive pricing:
Is product offering more or less value than the competitors-
Competitors - price 200ml
Raw Pressery - Rs. 60
Dabur Real Activ- Rs. 50
Cocojal- Rs.50
Some competitors are offering less than our price while some are
offering same price. As our product is cold pressed and has no
preservatives it acts as a reason for the consumers to choose our
product over the others.

5. Pricing method:
The pricing method we choose would be mark up pricing, that is
we added a margin of profit that we want to the costing.We are
adding rs. 3 to the manufacturing cost

6. Selecting the final price:

The final price selected by us would be Rs. 60
This is because the manufacturing cost is Rs. 50
We can sell it to the wholesalers at Rs. 53
The final MRP of the product would be Rs. 60
We are using penetration strategy and keeping the margin for
manufacturer really low but the price can be increased later on
after capturing the market.