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SM E-13 Nandini Good Life
SM E-13 Nandini Good Life
Market Share
Nandini accounts for 65% of packed liquid milk sold in Karnataka. Other local brands
account for 15% of packed liquid milk and balance 20% of liquid milk is sold in the form of
Tetra Pak. The typical incremental processing and packaging cost between poly pouch and
tetra pack is Rs.10 per litre. Amul is the dominant player in Tetra Pak with 85% market share
and sells at Rs.60 per litre.
Nestle has a 15% market share of Tetra Pak but their product is priced at Rs.70 per litre. In
other product categories Nandini brands are priced 10% lower than Amul
New Product:
Nandini is ready to launch its Good Life Tetra Pak with a product and Packaging that is as
good as Amul and Nestle if not better. It must decide on its pricing strategy.
Questions:
a. What factors contribute to the pricing strategy of Tetra Pak?
b. Are the pricing and product mix decisions interlinked?
c. Suggest the minimum and maximum price range and explain the 2 most important
factors to decide the final price?