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  • SM E-13 Nandini Good Life

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    The document discusses Nandini, a cooperative organization in Karnataka that produces and sells milk and milk products. It analyzes Nandini's current product portfolio, market share in the state, and objectives to procure high milk volumes from farmers. Nandini is preparing to launch a new Good Life tetra pak milk product and seeks advice on determining the appropriate pricing strategy while considering factors like production costs, competitor prices, and interconnectivity with product mix decisions.

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    The document discusses Nandini, a cooperative organization in Karnataka that produces and sells milk and milk products. It analyzes Nandini's current product portfolio, market share in the state, and objectives to procure high milk volumes from farmers. Nandini is preparing to launch a new Good Life tetra pak milk product and seeks advice on determining the appropriate pricing strategy while considering factors like production costs, competitor prices, and interconnectivity with product mix decisions.

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    79 views1 page

    SM E-13 Nandini Good Life

    Uploaded by

    tanima
    The document discusses Nandini, a cooperative organization in Karnataka that produces and sells milk and milk products. It analyzes Nandini's current product portfolio, market share in the state, and objectives to procure high milk volumes from farmers. Nandini is preparing to launch a new Good Life tetra pak milk product and seeks advice on determining the appropriate pricing strategy while considering factors like production costs, competitor prices, and interconnectivity with product mix decisions.

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    of 1

    SM E 13

    Nandini Good Life --Pricing by Objective


    Stakeholder Objective: Be able to procure all the milk offered by farmers
    who are also the owners of the Cooperative organisation.
    Organisational Objective: With volume objective as number one priority,
    generate the highest realisation per unit of milk solid.
    Short Term Vs Long term: Volume and organisational objective to be
    achieved in the short term. The long term is secure as there are several
    programs in place.

    Current product portfolio


    Products Pack and Price Volume and contribution Remarks
    from Nandini Share of product
    Portfolio
    Liquid Milk Sold in poly pouches @ Rs.40 Accounts for 60% of total Potential to sell more
    per litre (several SKUs are milk solids, 46% of than current volume is
    available) contribution earned limited
    Flavoured Sold in bottles @ Rs.10 for Accounts for 15% of total Potential to sell 20%
    Milk 200 ml and several SKUs are milk solids and 25% of more as demand is
    available contribution earned more than supply
    Skimmed Sold in refill packs @ Rs.300 Accounts for 10% of total Sold during peak
    Milk powder per Kg milk solids and 12% of season only
    contribution earned
    Ghee Sold in glass bottle @ Rs.500 Accounts for 10% of total Potential to sell more is
    per kg milk solids and 15% of limited. Nandini is
    contribution earned already the leader in
    branded ghee
    Other Paneer, Shrikand, Cheese and 10% of volume and 12% of Potential to sell more is
    products Milk Pedha contribution limited

    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?

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