Vora and

company Case
Submitted by:
Utkarsh Kumar Singh (221156)
Shambhvi Singh(221132)
Vidur Chutani(221165)
Siddharth Kohli(221142)
Sumanto Banerjee(221151)
Abhishek Jain (221175)

Pricing strategy Evaluation adopted by
Mr. Vora
Mr. Vora adopted a geographical based pricing
strategy.
The company received 20% less of the list price
in sales from its product.
10% of trade discount was given to the retailers
and another 10% to the agents as commission.



Cost per Case of Blossom Oats
Type Amount(Rs)
Material 24.12
Packaging tins 21.60
Other packaging
materials
4
Direct Labour 5.40
Railway Freight 4.80
Total 59.92
Direct Costs Overhead Cost

Type Amount(Rs)
Rent 165
Electricity and
water
50
Coal 50
Depreciation 500
Interest on
working capital
250
Others 1015
Total 2030
Cost per Case of Blossom Oats
Total overhead cost per case for 500 cases is Rs
12.18 .
Hence total cost per case=Direct cost+
Overheads cost=Rs 72.1
Pricing strategy evaluation
List price of a case by Mr. Voras company=Rs
81( In North India)
Commission of agents=10% of 81=Rs 8.1
Trade discount of retailer=10% of 81=Rs 8.1
Net selling price per case=Rs 64.8
Total Cost per case=Rs 72.1
Hence net loss per case=72.1-64.8=Rs 7.3





Pricing strategy evaluation continued..
In comparison we see one case of Champion
Oats list price=Rs 93.
After 7.5 % commission & 7.5 % trade discounts
net selling price per case of Champion Oats=Rs
79.05
Hence we can conclude that Mr. Vora could
increase the price per case of Blossom Oats up to
Rs 92.In this way he can earn some profit in
north India by offering a lower price than
Champion Oats.
Factors to be considered for pricing
The aim:
Maximising profit
Maximising market share
Demand
The type of consumers (price sensitive or not)
Approximate cost of production
Competitor
Geographic location
Commission of agents and sub agents

Recommend a pricing strategy to
improve the marketing performance

Price sensitivity is less as there is only one
competitor.
Champion Oats price was higher than Blossom
oats which implies that customers perceived
value of Champion oats is more than Blossom
oats.
So Blossom oats can increase their price but at
the same time and at the same time increase
their advertising expenditure as well as appoint
an experienced distributors.

Mr. Vora should go for geographical
based pricing
This will help him to provide different rates to
wholesalers and other specific types of customers such as
hotels etc.
The company should focus on different pricing strategy
for areas where the business is struggling.
The oats have higher acceptance in southern India so the
company can afford to adopt different pricing.
The company is based in Lucknow so they have to
consider the additional costs incurred due to shipping.
The company needs to spend to set up a robust
distribution channel to establish its brand in the regions
where the brand is struggling. For this reason the pricing
strategy may have to vary



Thank You!!