Product Pricing and Business Model design template

PART 1: Which pricing strategy would you use for this product and why? You may
make certain assumptions about the business landscape but please do include them
in your response. Please choose from the pricing strategies that were covered in the
Week-13 learning videos

INCLUDE YOUR WHY DID YOU

WRITE DOWN THE
ASSUMPTIONS ON SPECIFICALLY CHOOSE
STRATEGY YOU USE
BUSINESS LANDSCAPE THE PRODUCT STRATEGY

Strategy to be Used- I will utilize Demand Pricing Strategy for this item. Upon additional
interest from the advancing situation, Cost in addition to evaluating can likewise be
utilized. Further when the products can be anticipated the various topographies, the
geographic valuing could be utilized and utilized

Assumptions on Business Landscape

• Client bases incorporate corporate clients (producing as well as specialist
organizations) as well as individual clients.
• GST of 12% considered for the offer of each and every particular amount.
• Individual Consumers will be served at the fuel administering unit at the premises
of the assembling plant.
• Manages corporate clients will be finished paperwork for a particular time frame
period, to give the item at a particular cost.
• Arrangements for contract expansions/recharges should be possible upon
common understanding between the concerned gatherings.

Reason for choosing this Product Strategy

• To guarantee offloading of the stocks at pre-concurred cost, with the goal that the
capital will be taken back to the framework.
• To empower the organization to select improving the creation.
• To empower the chances to procure comparable arrangement of new corporate
customer base, so the guaranteed capital will assist the organization with developing
better.
• The corporate will depend on our item because of the viability and will actually
want to take extra amount with better valuing.
PART 2: a) Would you deploy the Van Westendorp or the Gabor Granger pricing
model for this product, and why? b) Elaborate on the benefits and challenges of both
the above methods in comparison to one another 1

1. which pricing model

would you deploy and why

2.Benefits and challenges of

Van Westendorp pricing
model

3.Benefits and challenges of

Gabor Granger pricing
model

After cautious review and examination of Van Westendorp and Gabor Granger models, I will
propose to go with Van Westendorp model, taking into account the definite experiences and
plenty data it offers when contrasted and Gabor Granger model.

The following are some benefits of Van
Westendorp:
• Grasping the connection among cost
and elements
• Give information on the fitting
estimating.
• It likewise tosses knowledge on
which highlight mixes bring about the most
exorbitant costs.
The following are some benefits of using
Gabor Granger:
• It requires less work to lead the study;
• It uncovers the exact cost range that the
vast majority view as fair
• Results change often.
• Speedy experiences can be acquired
 The following are Van Westendorp's
difficulties:
• The survey makes the assumption that
respondents are know all about the item.
This could not generally be the situation.
The utilization of this system for new items
isn't prompted on the grounds that the
client is curious about the item and doesn't
have the foggiest idea what might a
reasonable cost.
The following are some of Gabor Granger's
difficulties:
• Can't be applied to another item
since customers know nothing about its
advantages;
• The overview overlooks contending
items.
It tends to be utilized in the best light for
the situations where income enhancement
is in picture.

PART 3: Create at least 3 distinct customer segments for this product, deploy a brief
segment attractiveness analysis, and then choose 1 segment to target on the basis
of the segment attractiveness analysis

Corporate Consumers

Oil Refining Companies

Consumers including individuals, retails and environment conscious folks

 Segment Attractiveness Analysis:
1. Corporate Consumers: They are exceptionally requesting customers
regarding the expected stockpile at a viable cost. Thus, we can search for better
benefit by giving effective stockpile of item at a cutthroat cost. The audit of the
details of the agreement can be made each quarter/a half year with the goal that
the extension for value modification can be kept alive. Installment of contribution
on the due date can be made by wire-move or any UPI systems so the endeavors of
follow up can be kept at lower level.
2. Oil Refining Companies: the Biofuel prerequisites are progressively
becoming higher for these organizations and subsequently we can arrange off the
higher amount of creation through this fragment. The public authority seat mark
cost will be demonstrative which deals with minimal benefit over the expense. The
guaranteed installment will be gotten on the due date according to the
understanding, so the endeavors on the subsequent meet-ups and the related
functional expenses can be diminished. Keeping up with opportune stockpile and
guaranteeing the item quality according to the concurred lines, will improve the
interest, subsequently advancing perpetual business. Since the public authority will
be constantly exploring the expense benefit examination on an opportune premise,
there will be an extremely less exertion expected by the organization to contribute
on evaluating exchange.
3. People who care about the climate and Individual Consumers/Retailers:
Nowadays, an ever increasing number of individuals are endeavoring to embrace
harmless to the ecosystem rehearses. Individuals are looking for items that are less
destructive to the climate as choices. Four out of each and every ten people (or 4.
for this situation, look for harmless to the ecosystem things, implying that they are
presently sought after. Since biodiesel has a lower carbon impression than normal
fuel or gas, it will engage the individuals who care about the climate. The mental
viewpoint would be the essential inspiration for this gathering to choose biodiesel.

From the above examination, we can go into contract into Oil Refining Companies
because of the accompanying:
1. Long Term Agreement
2. Assured installment on the due date
3. Revision of cost according to the public authority notice
4. Improving the stock on execution premise over the timeframe so the
upgrade level of creation can likewise be achieved in light of the go.

PART 4: Do you feel that this product could end up becoming a commoditized product?
Give reasons for your opinion. How would you differentiate your product to prevent it
from becoming commoditized?
Indeed, I feel that this item could wind up becoming commoditized subject to
the accompanying places:

• Effectiveness of the vehicle which is accomplished after utilizing the

biodiesel shouldn't tumble down definitely

• The value equality ought to be positive consistently, so one of the

fundamental reasons for this item send off will remain alive.

• The reliance on imported oil based commodities can be limited

consequently giving a road to the country to save significant unfamiliar trade
and a piece of that saved sum can be utilized for motivations and other related
special exercises.

• Ecological elements including fossil fuel byproducts can be placed on

control so there additionally, the public authority can take benefits in the
global environment gatherings.

Highlight Differentiations that forestall biodiesel from becoming

commoditized:

• The fuel recipe ought to be kept special and ought not be permitted to
be copied or weakened.

• The interest for the fuel/bio-fuel will be on the rising bend. Because of
the limited inventory of the horticultural produce for this section (biodiesel),
it can not sub for the oil based goods.

• Adequacy of the biodiesel will be the essential measures which can't

give improved productivity than the ordinary oil based goods.
Accessibility of the oil based commodities in India is extremely less when
contrasted with the utilization levels and subsequently the assembling costs
will go up at a specific stage and consequently won't be cutthroat after a
time span.
PART 5: Create a business model for biodiesel manufacture by utilizing the provided
business model canvas.

<Given below business model design is for your reference. Create a new business model design for
biodiesel manufacture>

Key Partners Key Activities Value Customer Customer

1. Raw Material 1. Procurement of raw Proposition Relationships Segments
Suppliers materials and advnce 1. Its an 1. Validity period 1. Oil
• Biodegradable payment to suppliers. agricultural of contract manufacturing
waste collectors 2. Processing of raw product. 2. Payment companies
• Cows/ buffalo materials to arrive at 2.Its more mechanism and 2. Corporates
shelters finished products eco-friendly. timelines 3. Retail
• Waste 3. Storing of finished goods 3.Proven 3. Agreed Price Segment
Transportation 4. Dispatch of the goods Quality Terms and
partners 5. Receiving and collection 4.Lesser Pricing revisions.
• Restaurants, of dues from the debtors. carbon
hotels, and other emission
food processing Key Resources 5.Better Channels
industries 1. Financial resources alternative to 1. Visiting the
2. Human resources thermal and Fuel outlets of
2. Service Providers 3. Raw material resources other forms the company.
• Operations of fuels. 2. Sales
partners 6.Strategic promotion
• Legal partners location of through
• Financial partners plant should electronic/social
be nearer to or other available
3. All customers oil refining media
companies.
Cost Structure Revenue Streams
1. Factory Operations Cost 1. Selling biodiesel (retail and
2. Labor cost wholesale)
3. Raw material cost 2. Selling the by-products and
4. Marketing cost residues (like bio fertilizers)
3. Going for IPO down the lane
over a period of time.
PART 6: Comment briefly on the positioning strategy that you would
recommend for the Biodiesel that this company produces; What
messaging would you like to incorporate in the brand outreach such that
it creates a positive impact about the brand and its product in the minds
of the target audience? Refer to the following link; Upon reading it, please
choose from one or two of the 5 positioning strategies mentioned therein
and give reasons for how it suits this product.

We really must utilize the situating methodology illustrated underneath

to separate ourselves since there is serious areas of strength for a that
biodiesel will become commoditized.

Situating in light of elements of the item:

• We should illuminate clients that the biodiesel that is utilizing the water
to deliver merchandise in the partnership made from the trash from the
cafés or from the private networks.
• We should get the message out about how incredible our item is
harmless to the ecosystem, and they advance natural assurance utilizing
the thing
• Stressing biodiesel as an environmentally friendly power source is
another productive methodology
• Accentuating that almost no change is important in utilizing our item's
motor can likewise help us in situating our item.
Situating in light of value:
• We should create top notch biodiesel;
• We should show to the market that using our biodiesel drags out the
existence of the motor or brings down upkeep costs.
• We really want to plan our advertisements so they feature the item's
quality and the way that it defends the motor.
Adjusting situating to item utilize:
• By featuring the upsides of utilizing biodiesel as an elective item, you
may:
• Convince individuals that utilizing this item will assist with safeguarding
the climate;
• Convince individuals that utilizing biodiesel can be used as a substitute
for business fuel;