pricing strategy of 5star and kit-kat

Kallol Kumar Sarkar 2011096

Viral Upadhaya 2011

Prashant Sethi 2011

PRICING STRATEGY OF NESTLE &

CADBURY

Kit-Kat

• Kit-Kat 2 finger (18 gms) – Rs. 10

• Kit-Kat 4 fingers (34.5 gms)- Rs. 20

• Kit-Kat 6 X 2 fingers (108 gms) – Rs. 60

• Kit-Kat dark (40 gm)- Rs. 50

• Kit-Kat imported from UK (160 gms)- Rs. 200

• Kit-Kat dark imported from UK ( 160 gms)- Rs. 200

Cadbury 5 star

• 30 gms- Rs. 10

• 15 gms- Rs. 5

• 10 gms- Rs. 2

Cadbury 5 star crunchy

• 30 gms- Rs. 12

5 star (fruit and nuts)

• 45 gms- Rs. 23

Cadbury 5 star Jelly

• 30 gms- Rs. 10

• 15 gms- Rs. 5

• 10 gms- Rs. 2

PRICE

Kit-Kat

• Excise duty is even higher (40%)

• Premium priced brand

• High cost of distribution ( only from Delhi)

• Consumers are chocolate lovers as well as biscuit lovers

• Used as gifts

Cadbury 5 star

• Price rise due to cocoa price rise

• Excise duty rise (18%)

• Profit Maximization is the main objective

• A minimum return on sales turnover

• Market Share

• Deeper penetration

• Keeping competition out

PRICE

YESNO

YESNO

PRICE SENSITIVITY

Cadbury 5 star Kit –Kat

If price is increased will the consumer buy it ?

THANK YOU