PRESENTED BY:- “TEAM 7A”

*ARUSHI KANSAL *ARYAN SIROHI

*ASHI JAISWAL *ASHISH SHARMA
*ASHUTOSH SHARMA *AVDESH PUNDIR
 CONTENT
• INTRODUCTION
• MARKET SEGMENT
• SWOT ANALYSES
• CONS AND PRONS
• 4 P’s
• PRICING STRATEGY
• TARGETED MARKET
• STRATEGIC PLAN
• FIVE FORCES MODEL
• PRICING CALCULATIONS
 Introduction
• BiTs is a large company manufacturing
servers and other technical products.
• BiTs has been a strong player in this segment
and has captured 20% of the revenue market
share.
• It had been in competition for the market of
server since past twenty-five years through its
high-end performance unit servers, named
Fastum, selling to business customers.
 MARKET SEGMENT
• The largest segment, High Performance servers,
represents the traditional use of servers to run
complex applications.
• We’re talking SCM(Supply Chain Management)
ERP(Enterprise resource planning), BI(Business
Intelligence) such others.
• Segment is expected to demand approximately
2,00,000 units next year and is projected to grow
around 3% annually the following 2 years.
 Swot analyses

STRENGTH:- BiTs has been a strong player in this

segment and has captured 20% of the revenue market
share.
WEAKNESS:- Sometimes customers get confused when
comparing their investments plan for short and long
term.
OPPORTUNITY:- We have a huge opportunity to enter
a new market with new server, the Crown and PISA
software tool.
Threats:- New market has been captured by Shiva
Computer for a quite long time.
PROS AND CONS OF “PISA TOOL”

 ADVANTAGES
• It would make the Crown to work faster than its
standard speed, almost by four times.
• It is specially designed to make frequent access to
desired information such as images, data, etc.
 DISADVANTAGES
• We don’t know that how customers are likely to
respond and how competitors are likely to respond
to our pricing strategy.
 4 P’S Of BiTs Computer
• PRODUCT- BiTs is a large company
manufacturing servers and other technical
products like “BiTs Bundle”.
• PRICE:- Expected price RS. 1,40,000 for “BiTs
Bundle”.
• PROMOTION:- SME(Small Medium Enterprise)
Trade Shows.
• PLACE:- Crown server with PISA tool. We can
sell it through a high-touch direct sales
channel.
 PRICING STRATEGY
• Focus only on hardware rather than designing
and selling software tools that improve server
performance.
• Software tools should usually be given as free to
customers.
• Fix the prices of servers that followed the
standard pricing approach of industry which
cost-plus pricing.
• Proposed the price of the basic server at
Rs.1,40,000.
• Sell at same price as of four Shiva Zen servers.
• Sell at a cost- plus approach that is including
PISA development costs.
• Sell at value in use pricing.
• Use of value-in-use pricing by which almost
every prospective supplier can save money.
• We need to get our pricing right for the ‘BiTs
Bundle’.
• Product differentiation and building customer
relationship.
 TARGETED CUSTOMERS
• Target Pricing:- It is a pricing strategy in
which the selling price of the product or
service is determined first and then the cost is
calculated by reducing the profit margin.
• PRICE SKIMMING:- To fix the prices of our
servers, we followed the standard pricing
approach of industry.
• Value-based pricing- To consider customer
segment which would prefer PISA Tool based
upon benefit in internal BETA Test Results.
• Penetration pricing:- Instead of starting with
high prices, we start with low prices and
gradually increase them as they gain traction.
• Competitive pricing:- Instead of making price
increases later on, we’ll continue to track what
our competitors are charging and beat them
out.
• Premium pricing:- Our prices may drop
slightly over time, but they should still give
our buyers a feeling of exclusivity and, in
many cases, luxury.
 Strategic plan
• Refer a website of Day- Trader-journal for a
customer profile.
• We compare two basic unit servers bundled
with the PISA tool against four basic unit
servers.
• The pricing strategies in general are status-
quo pricing, competition-based pricing, cost-
plus pricing, value-in-use pricing.
• We calculate the first-order and second-
order savings for customers.
• Market Competitiveness:- Market Competitiveness
refers to how competitive and profitable a market is.
• Bargaining Power of Buyers:- Bargaining Power of
Buyers refers to how much impact customers have on
pricing structures.
• Bargaining Power of Suppliers:- Suppliers have
some control over the business due to their prices and
terms of supply.
• Threat of Substitution:- It refers to opportunities
where customers can easily substitute one
product/service for another if they choose to do so.
• Threat of New Entrants:- When demand exceeds
supply, new entrants are more likely to enter.
 PRICING CALCULATION-
COST(Per Server) Electricity(cost Licenses cost for labor
yearly) application
software

Basic unit server Rs 17,500 Rs 52,500 50

High performance RS 28,000 Rs 52,500 30
unit server

Bits computer Price /server Cost/server

Crown (basic unit) RS 1,40,000 Rs 1,07,660
Fastum (high Rs 7,70,000 Rs 5,31,020
performance )

Shiva computer
Zen (basic unit) Rs 1,19,000 Rs 84,980