Pricing Project

On

Real Fruit Juice

Presented By:
Abhishek
Garikina Raju
Manideep
Ujjwal
Research Methodology

• Sample Size – 53
• Location – Mysore
• Analysis Tools – Excel
• Data Collection – Primary data, Secondary Data

• Product- Real juice (1lt. With no variations in variety)

 Analysis:

Buy vs Don't Buy

• Out of total 53 respondents, 41
respondents consume real juice which Don't buy
23%
accounts for 77% and 12 respondents
do not consume Real juice
buy
Don't buy

• For Analysis, respondents who

consume real juice are taken into
buy
consideration 77%
Buy vs. Awareness
Not Aware about
price
Buy vs Awareness
8%

• Those who buy, out of those 92% are aware of

the price and 8% of total are not aware of the
price

We can infer from this data that 8% of the

respondents are not price sensitive and are Aware
92%
more of brand loyal. Aware Not Aware about price
 Price Elasticity
• Willingness to pay for 1lt Real juice
Demand
140

120
Willingness to pay No. of respondents 100

80
85 15
60 Demand
95 12
40

105 11 20

0
115 3 0 2 4 6 8 10 12 14 16

E= (% change in Q) / (%change in P) Revenue

% change in Q= 1/12 = 0.0833 95 * 12 = 1140

(%change in P) = 10/95 = 0.1052 105*11 = 1155

= 0.0833 / 0.1052 = 0.791 1155 – 1140 =Rs.15

Willingness to buy bundled product
• the majority of the customers i.e. 66%
were not willing to buy 2 pieces in a
bundle pack for Rs.180. And 34%
were willing to buy the bundled
product.

• Probably, one of the reasons, B-

Naturals is not doing good.
Willingness to purchase 500ml vs no
willingness to purchase
• Low individual price but high per ml price 500 ml -willingness to buy

• 1 lt @ Rs. 95 500ml-not buy

29%

• 500ml should be priced at Rs.47.5

• But 71% of the people were willing to buy
the product if the price was Rs.50 500ml- buy
71%

• 29% people were unwilling to buy the

product. 500ml- buy 500ml-not buy
Relative expensiveness

• 55% of the respondent were

neutral

• They do not think it is too

expensive or too inexpensive when
compared to competitors

• Inference –
 non carbonated fruit juice market is
competitive, as respondents are
unable to classify a brand as
expensive or inexpensive
Recommendations
• May increase the price of the product – The demand in inelastic. So
Real can generate more revenue by increasing the price

• Should not offer bundled product with low prices- Consumer did not
respond in favor of bundled product