B – NATURAL

PRICING STRATEGY
Overview
•Fruit juice consumption driven by in-house consumption or
unbranded juices at juice stalls despite hygiene concerns

Average price of fresh fruit juices at unbranded stalls and

that of packaged fruit juices is same or rather higher

Major POD – Unbranded fruit juices are 100% fruit juice

while packaged juices have less juice content

Taste a major driving force – key focus of ITC’s B – Natural

Campaign

Target Customers – SEC A & SEC B

Setting the price

Pricing • Product Quality Leadership

Objective
• Taste is the major focus

• Demand is price elastic with many substitutes available

Determining • Growing demand for packaged juice due to increasing awareness

and importance of hygiene and health

Demand
• Packaged Juice CAGR growth rate – 8% - 9% & Juice Industry CAGR
growth rate – 17%
• Low market penetration of packaged juice – 5%

Estimating • Higher fixed costs as compared to variable costs

• Aim to capture 18%-20% market share, thus increasing production will

costs
lead to reduced costs due to economies of scale over time
Setting the price
Competitor price analysis Pricing Method Final Price

Dabur Pepsico – ITC – B

ITC – B Natural ITC – B Natural
Real Tropicana Natural
In the beverage
Market Going Rate Pricing: industry, products
Market Market Share prices similar to targeted towards
Share – 55% Share – 30% (Planned) – that of existing premium and mass
18% - 20% competitors consumers have
lower final prices

Value-Pricing:
Final prices are
Average Average Average Offering high
generally similar to
Price 1L – Price 1L – Price – Rs- quality 100% fruit
that of competitor
Rs-99 Rs-120 99 juices at
prices
competitive prices
Pricing Strategy

Adapting the price

Differentiated Pricing

i) Channel Pricing
ii) Product Cost based pricing
 B – NATURAL
Segmentation, Targeting and Positioning
Segmentation

Geographic Demographic Behavioral

Age Needs &

Benefits

Income
Rural vs Urban Loyalty Status
Generation
User & Usage
Culture- related
buying habits Variables
Targeting
 Socio-Economic Classes (SEC) A and B of
urban population

 All age groups with Zero Sugar product

offering for health concious/elderly
population

 Premium Segment offerings -

 Jamun( ~50% costlier than
concentrate juices)
 100% Pomegrenate (~100%
costlier)

 Mass segment - 200 ml tetrapacks with

competitive pricing

 Usage Rates- Medium and Heavy users

 User status - Potential, ex-users, first timers

and regular users
Positioning
ITC has been positioning B Natural at a premium to the largest
competitors in India’s Rs2,500 crore juice market, PepsiCo (Tropicana)
and Dabur (Real).

 'Can't hide the taste' is the self-explanatory

baseline that the brand has stuck to. "Every fruit drink has the
inherent goodness of
 Aims to rope in the everyday consumer who is fruit, which is a base
concerned about his health, but is not fanatical level expectation of
about it. every consumer. Great
taste, however, is a
 'Desi' flavours to do the trick of expanding the differentiator"
market -Sandeep Upadhyay,
Marketing Manager

 Made from Fruit Pulp or Nectar, not from

Concentrate