TERM PAPER ON

Pricing Strategy of Pavilion

Course Title: Pricing Strategies and Practices
Course Code: MKT 3202
Submitted By:

Ahmed Hossain Tamjeed 17251007

Rakeen Ahmed 17251009

Rashidul Hasan 17251045

Saif Adnan Khan 17251049

Aanan Abraar 17251055

Section – A

Dept. of BBA in Marketing,

Faculty of Business Studies

Bangladesh University of Professionals

Submitted To:

Dr. Md. Kashedul Wahab Tuhin, PhD

Associate Professor

Jahangirnagar University

Date of Submission: 12th November 2019

Letter of Transmittal
12th November 2019

Dr. Md. Kashedul Wahab Tuhin, PhD

Associate Professor

Jahangirnagar University

Subject: Submitting the term paper for the course Pricing Startegies and Practices

Dear Sir,

We are submitting our term paper on “Pricing Strategy of Pavilion” with due gratefulness and
admiration. We have tried to implement our academic experiences in the practical field with due
sincerity and would like to thank you for your cooperation. Despite many limitations, we have
tried our level best to address the major and in-depth issues in making this paper accurate and
reliable. If you have any further inquiry concerning any additional information we would be very
pleased to clarify that.

While working on the report, we have tried to follow each and every guideline that you had
advised. It has been a very enlightening experience to work in this new venture. We, therefore,
hope that you will be kind enough to accept this report.

On behalf of the group,

Rashidul Hasan 17251045

Acknowledgment
In the beginning, we would like to convey our cordial gratitude to the almighty creator for giving
us the strength to terminate the assigned. We would like to reimburse our profound respect to our
respected supervisor, Dr. Md. Kashedul Wahab Tuhin, PhD for his generous and gracious
guidance.

Though the time was very limited for us to work on such a big Term Paper, your guidance and
support made our work a lot easier. The knowledge we gathered from this course has been an asset
for all of us from the time we got to prepare our term paper.

We are also grateful to our friends who have provided valuable guidance, suggestions, and advice
on collecting information, analyzing and preparing the report.
Executive Summary

Pavilion is a sports portal in Bangladesh. The aim of Pavilion is to bring the sports enthusiasts of
Bangladesh together.

This report contains details about Pavilion along with their business strategy. It highlights the
competitors and describes the pricing strategy adopted by the organization.

Based on the findings there are certain recommendations to improve the current situation of
Pavilion.
Table of Contents
Introduction ..................................................................................................................................... 1
Objectives ....................................................................................................................................... 1
Methodology ................................................................................................................................... 1
About Pavilion ................................................................................................................................ 2
Business Strategy ............................................................................................................................ 2
Industry Analysis ............................................................................................................................ 3
Points-of-Parity ........................................................................................................................... 3
Points-of-Difference ................................................................................................................... 3
Pricing Strategy ............................................................................................................................... 4
Recommendation ............................................................................................................................ 7
Conclusion ...................................................................................................................................... 7

Table of Figures

Figure 1: AD Placement on Website ........................................................................................... 4

Figure 2: Direct Banner Placement Pricing ............................................................................... 5
Figure 3: CPM Based Pricing ...................................................................................................... 6
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Introduction
Bangladesh is a country filled with sports enthusiasts. The entire nation is quite sentimental when
it comes to sports. Every win is celebrated as a big one and every loss is mourned as the gravest.
Keeping track of all these emotions and sentiments can be quite a challenge. Newspapers and
online news portals make sure that the entire nation is aware of the wins and losses along with
each other’s sentiments. However, as a developing country, not all have access to newspapers or
news portals and many of those who have access don’t have the proper technological knowledge
to navigate through the mentioned platforms.

Keeping this in mind, a small group of sports enthusiasts came up with Pavilion. A dedicated sports
portal completely in Bangla. This would help all the sports enthusiast out there to keep track of
sports news all around the world that too in their mother language Bangla. This abolishes the idea
of language barrier.

From this study we will get to know more about this new sports platform and also the pricing
strategy of this particular business.

Objectives
The objectives of this study are as follows,

• To understand how the business works.

• To understand the pricing strategy of Pavilion.
• To find out underlying problems of the current business model of pavilion.

Methodology
All the data and information have been collected from primary source. We have communicated
with the company directly to obtain all the information that we are going to present here.
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About Pavilion
Founded in 2014, Pavilion is a dedicated Bangla sports portal that covers sports news all around
the world. They started as a Facebook page and later developed their own app and website.
The idea behind the platform was to create a dedicated platform for all the sports enthusiasts in
Bangla so that everyone can stay updated on the sports events and news happening around the
world.

They started with a Facebook page to reach out to the sports enthusiasts of the country. Eventually
the growth led to launching an app and a website. Currently they distribute content through Social
Media such as Facebook, Instagram, and YouTube and on their app and website.

As of September 2019, on a normal day, the Pavilion website has 250,000 page-view/impressions.
This crosses 400,000 on the day of a match. The monthly page-view is now more than 10,000,000.

Business Strategy
As dedicated sports portal, Pavilion provides its readers with free content. They don’t charge the
readers for any sort of subscription. They generate their revenue through ad placements on their
Social Media accounts, App, and Website. So it can be said that they follow AD model for revenue
generation. The target group of Pavilion is mostly sports enthusiasts between the ages of 18-38
years.

They have two types of pricing options for their app and website.

1. Direct Banner Placement: Direct Banner placement lets the clients place a banner on
certain parts of the app or website page. They are charged a certain amount according to
the size and position of the banner and the time period they want to display the ad for.
2. CPM Based: In this particular case, the client is charged according to the number of times
users/readers see the ad. This is also known as impression based pricing.
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Industry Analysis
Although there are no other dedicated sports portals in Bangladesh, existing news portals have a
separate sports section. These portals are the main competitors of Pavilion.

In this particular case two market leaders are Prothom-Alo and Kaler Kontho. Both of these portals
have separate sports sections in Bangla on their website.

Points-of-Parity
When comparing Pavilion with the above mentioned two news portals, certain similarities can be
seen. They are,

1. Available in Bangla
2. Covers sports news around the world

Points-of-Difference
In order to attract and capture the market, it is imperative that Pavilion holds certain points-of-
difference from their competitors. They are,

1. Dedicated sports portal

2. Separate video section
3. Separate blog section
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Pricing Strategy
Pavilion offers several sections on their app and website. Each of these sections contain different
sports news. All the content available on their app and website is completely free to access. Readers
don’t need to pay for the content. They generate revenue through ad placements on their website.

Figure 1: AD Placement on Website

As a new entrant in the market they consider the market leaders pricing strategy and charge a lower
amount than the competitors. Pavilion uses three types of pricing strategies.

1. Competition Based Pricing: Pavilion has set their price based on the price set by Prothom-
Alo and Kaler Kontho. They are charging a lower price for ad placements on their website
and app than the competitors. This is the primary pricing strategy of Pavilion.
2. Discount Pricing: Another strategy adopted by Pavilion is discount pricing. This is not the
main strategy for Pavilion. They offer a 15% discount if the clients want a 6-month long
advertising campaign.
3. Penetration Pricing: As market leaders Prothom-Alo and Kaler Kontho have higher price
rates, Pavilion set a very low price to capture the market. Pavilion set a price rate of BDT
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40 for each impression while Prothom-Alo and Kaler Kontho have price rates of BDT 75
and BDT 100 for each impression.

The market leaders Prothom-Alo and Kaler Kontho both use CPM based pricing for ad placement.
Pavilion uses both Direct Banner Placement and CPM based pricing.

Figure 2: Direct Banner Placement Pricing

Direct banner placement allows the ad to penetrated java script disabled browsers. Most users use
java script disabled browsers which hinders in showing an ad. By placing a direct banner, this can
be bypassed and the ad will still be seen by the readers.
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Figure 3: CPM Based Pricing

CPM based pricing generates revenue based on the number of times a certain ad has been viewed.
A fixed amount is charged for each view of the ad. The number of views for each determines the
total revenue generated from a specific ad.
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Recommendation
Considering the age of Pavilion, they are doing quite well in the market. We believe there’s room
for improvement and we have some recommendations based on that.

• Subscription for Exclusive Content: Pavilion can introduce a subscription method for the
readers. That will give them access to exclusive contents on the platform.
• Investing in Marketing: Pavilion is still not so popular among their target group. Most
people do not yet know about the existence of Pavilion. Investing in marketing would allow
them to reach more readers which in turn would generate more revenue form ads.

Conclusion
Pavilion is a great platform for all the sports fans out there. They are still new and have much room
for improvement but have a promising future ahead.