1. PRICING OF AN INNOVATIVE PRODUCT
(CASE STUDY)
PRICING OF AN INNOVATIVE PRODUCT

2. SALIENT FEATURES
‘Cool Cream Private Limited’ is known as the manufacturer of the finest icecream in the country.
Introduction of new innovative product Adrak Icecream specially for sore throats.
General Manager & the R&D team wanted the price to be cost+100% profit, reason being the product will soon be copied and the company will lose its monopoly.

3. In the contrast the sales team wanted to introduce the product at low price so that it could penetrate in the market
Manufacturing Manager does not want to compromise with the quality to cut the cost.
Purchase Manager argues buying and storage of ginger, as it will add to the cost.
The above factors lead to confusion regarding the pricing of the product.

4. PROBLEMS Pricing of the product
To convince the managers of different departments of the company.
Promotion strategy.
Acceptance of the product by the target consumers.
It will be copied by other players soon.
Maintaining the reputation of the company.

5. ASSUMPTIONS Constant Price of the product throughout the country.
Acceptable by people, especially those with sore throats and old age group.

6. ALTERNATIVE SOLUTIONS

7. RECOMMENDED SOLUTION Rapid Skimming i.e. High Price & High Promotion.
Cost:
Material & Manufacturing cost
Cost incurred in R&D
Promotion Cost
Storage Cost

8. Since the company will not be able to maintain its monopoly for long in the market
High Promotion
New product in the market
To achieve maximum sales before new competitors enter the market