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Ditch The DISCOUNTS
Competitors respond by lowering their
prices even more, triggering a price
war
Dr in LPG cylinder prices brings joy
for homemakers
LPG price rises by Rs 3
Shock or dismay experienced by the
potential buyers of a particular product on
discovering its high or increased price.
Adaptive pricing is a pricing strategy in
which businesses set highly
flexible prices for products or services
based on current market demands.
Adaptive pricing vs Static Pricing
Aavin is the trademark of Tamil Nadu Co-operative
Milk Producers' Federation Limited, a Tamil Nadu-
based milk producer's union.
Aavin’s Adaptive pricing strategy
Aavin produces 4 varieties of milk:
Toned Milk (3% fat)
Doubled toned milk (1.5% fat)
Standardized Milk (4.5% fat)
Full Cream Milk (6% fat)
Aavin’s Adaptive pricing strategy
How to price in a
recession ?
Introduce Lower-Priced Versions
Use promotions to avoid price
drops
Adapt products to maintain affordability
Unbundle services and add extra fees
How to price in a
recovery ?
Withdraw recession-pricing tactics
Introduce new premium products
Increase the price of regular products
Offer new ways to experience
luxury
Offering “Good”,”Better” and “Best
varities”
Most affordable Car- Tata Nano
The Nano's
design
implements
many measures
to reduce
manufacturing
costs.
FY 2009–2010 30,000
FY 2010–2011 70,432
FY 2011–2012 74,527
FY 2012–2013 53,848
FY 2013–2014 10,202
Sales Figures:
Adaptive pricing in
the fast food industry
Able to survive in the market due to
consistent changes in flavors and
giving away freebies for purchases
Amma Unavagam (meaning "Mother Restaurant" in Tamil) is a
food subsidization program run by the Government of TN.Chief
Minister Ms. J. Jayalalithaa introduced this restaurant concept
aimed at helping the very poor sections of the society.
Amma Canteen introduced meal at lower prices and in
spite getting high revenue, was not able to make profits.
Price analysis of an Idly made in Amma Canteen
Hyndai Assurance Program
Shopclues.com provides discounts everyday
based on the department to attract customers to
it’s site everyday
Declaration
• Created by Divya Agarwal, VCE Hyderabad. Under
the internship by Prof. Sameer Mathur, Iim
Lucknow.

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Ditch the discounts