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8/8/2019 Price Strategy Final http://slidepdf.com/reader/full/price-strategy-final 1/13  MARKETING MANAGEMENT MARKETING MANAGEMENT Prof. Satheesh Krishnamurthy Prof. Satheesh Krishnamurthy

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Page 1: Price Strategy Final

8/8/2019 Price Strategy Final

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MARKETING MANAGEMENTMARKETING MANAGEMENT

Prof. Satheesh KrishnamurthyProf. Satheesh Krishnamurthy

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Presentation onPresentation onSuccess and Decline of products onSuccess and Decline of products on

the basis of costthe basis of cost

ByBy

Dheva Mathi Raja. ADheva Mathi Raja. A Arjun. SArjun. S

Pradeep. ChPradeep. Ch

Obed JohnObed John

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Product successful because of higherProduct successful because of higher

price (Apple iMac)price (Apple iMac)

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Reasons for Apple iMac successReasons for Apple iMac success

Apple iMac’s cost ranges from $1,199 to $1,799 depending uponApple iMac’s cost ranges from $1,199 to $1,799 depending upon

the configuration.the configuration.

It was worth spending this amount as the iMac had all theIt was worth spending this amount as the iMac had all the

advanced facilities no other system would have.advanced facilities no other system would have.  

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Stylish designStylish design

LED-Backlight displaysLED-Backlight displays

Wireless Keyboard andWireless Keyboard and

Magic mouseMagic mouse

iSight CameraiSight Camera

Built-in WiFiBuilt-in WiFi

Ports for everythingPorts for everything

Environment friendlyEnvironment friendly

Highly Secure and ReliableHighly Secure and Reliable

Other features which attracted the customers in spite of its costOther features which attracted the customers in spite of its cost

are as follows :are as follows :

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Product unsuccessful because of Product unsuccessful because of 

higher price (Dell’s Web PC)higher price (Dell’s Web PC)

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Reasons for Dell Web PC’s FailureReasons for Dell Web PC’s Failure

Dell Web PC had a price tag and that was one major backdraw.Dell Web PC had a price tag and that was one major backdraw.

Although it was billed as ‘low cost', the price of U$999 wasAlthough it was billed as ‘low cost', the price of U$999 wasexpensive than other competing models.expensive than other competing models.

Moreover, its cost was concentrated on the style more than  theMoreover, its cost was concentrated on the style more than  the

computing features and as a result it was out of market evencomputing features and as a result it was out of market evenbefore it completed six months.before it completed six months.

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Reasons for its failureReasons for its failure

Emphasis on designEmphasis on design

misguidedmisguided

It was solely business-It was solely business-

orientedoriented

Brand name not usedBrand name not used

efficientlyefficiently

Imitation of competitors E.g.:Imitation of competitors E.g.:

Apple iMacApple iMac

Lack of attractive featuresLack of attractive features

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Product successful because of lower Product successful because of lower 

priceprice

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Reasons for Sonata successReasons for Sonata success

Titan launched the Sonata brand in 1998 priced between Rs 300Titan launched the Sonata brand in 1998 priced between Rs 300and Rs 1,000 to exploit the huge potential in the budget segment.and Rs 1,000 to exploit the huge potential in the budget segment.

Titan Sonata Watches comes in over 650 models in plain gold,Titan Sonata Watches comes in over 650 models in plain gold,

steel, dual tone and plastic watches.steel, dual tone and plastic watches.

Sonata has since become very successful and also become theSonata has since become very successful and also become thesingle largest watch brand (in volume terms) in the country.single largest watch brand (in volume terms) in the country.

Currently, Sonata, already has a 20 per cent share of the marketCurrently, Sonata, already has a 20 per cent share of the marketwhich is as much as its rivals HMT and Timex put together.which is as much as its rivals HMT and Timex put together.

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The metal strap of the Sonata Watches is a big hit with the IndianThe metal strap of the Sonata Watches is a big hit with the Indianworking class men.working class men.

Sonata will now be sold through exclusive Sonata outlets—theSonata will now be sold through exclusive Sonata outlets—thefirst is slotted to open this month in Bhopal.first is slotted to open this month in Bhopal.

Planning to open 400 outlets, which stock only Sonata fromPlanning to open 400 outlets, which stock only Sonata from

Titan's brand portfolio.Titan's brand portfolio.

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Product unsuccessful because of lower Product unsuccessful because of lower 

priceprice

TideTide is the name of a popular is the name of a popular laundry detergent on the marketlaundry detergent on the marketin Canada, the United States andin Canada, the United States andother countries. It isother countries. It is

manufactured by Procter &manufactured by Procter &GambleGamble

19461946- Tide -- Tide - Heavy-dutyHeavy-dutysynthetic laundry detergent.synthetic laundry detergent.

19841984 - Liquid Tide -- Liquid Tide - LiquidLiquiddetergents that cleaned as well asdetergents that cleaned as well aspowders.powders.

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Reasons for its failureReasons for its failure

It is cheaper.It is cheaper. It do not much fragrance when compared to other detergents.It do not much fragrance when compared to other detergents.

It cannot remove hard stains.It cannot remove hard stains.

Product formulation and packaging more than seventy times.Product formulation and packaging more than seventy times.