Competitors respond by lowering their prices even more, triggering a price war

Drop in LPG cylinder prices brings joy for homemakers

LPG price rises by Rs 3

Shock or dismay experienced by the potential buyers of a particular product on discovering its high or increased price.

Adaptive pricing is a pricing strategy in which businesses set highly flexible prices for products or services based on current market demands.

Adaptive pricing vs Static Pricing

Aavin is the trademark of Tamil Nadu Co-operative Milk Producers' Federation Limited, a Tamil Nadu-based milk producer's union.

Aavin’s Adaptive pricing strategy

Aavin produces 4 varieties of milk:Toned Milk (3% fat)Doubled toned milk (1.5% fat)Standardized Milk (4.5% fat)Full Cream Milk (6% fat)

Aavin’s Adaptive pricing strategy

*****Here is ‘Fat’ is the attribute contributing to adaptive pricing*****

Aavin’s Adaptive pricing strategy

How to price in a

recession ?

Introduce Lower-Priced Versions

Use promotions to avoid price drops

Adapt products to maintain affordability

Unbundle services and add extra fees

How to price in a

recovery ?

Withdraw recession-pricing tactics

Introduce new premium products

Increase the price of regular products

Offer new ways to experience luxury

Offering “Good”,”Better” and “Best varities”

Most affordable Car- Tata Nano

The Nano's design implements many measures to reduce manufacturing costs.

FY 2009–2010 30,000 FY 2010–2011 70,432FY 2011–2012 74,527FY 2012–2013 53,848FY 2013–2014 10,202

Sales Figures:

Adaptive pricing in the fast food industry

Able to survive in the market due to consistent changes in flavors

and giving away freebies for purchases

Amma Unavagam   (meaning "Mother Restaurant" in  Tami l ) i s a food subsid izat ion program run by the Government of TN.Chief Min ister  Ms. J . Jayala l i thaa introduced th is restaurant concept a imed at help ing the very poor sect ions of the soc iety.

Amma Canteen introduced meal at lower prices and in spite getting high revenue, was not able to make profits.

Price analysis of an Idly made in Amma Canteen

Hyndai Assurance Program

Hyundai’s U.S. sales increased by 8%. And the cost to the company was minimal

Hyundai let buyers who lost their jobs returntheir vehicles. It thus avoided further pricecuts—and in nine months, fewer than 50 returned

Sometimes creative financing is the best way to hold the line on prices

Shopclues.com provides discounts everyday based on the department to attract customers to it’s site everyday