MKT201-- Case study "Ollo internet service"

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Information about MKT201-- Case study "Ollo internet service"

Published on February 22, 2014

Author: samiyayesmin



Case study of "Ollo Internet service"

For Mr. Husain Salilul Akareem's class

SEC 03 MKT 201: Principles of Marketing Mr. Husain Salilul Akareem Samiya Yesmin 11304043, Jannatul Ferdous 11104096, Tabassum Anwar 11104116 7/3/2012 Assignment on Case study of “Ollo internet Service” internet service and how to apply product mix pricing strategies on it to maximize profit.

Product Mix Pricing Strategies are on products that are already available in the market. It is of five types, which we will apply to “Ollo internet Service” as follows: i. Product-Line Pricing: This is setting prices across an entire product line. Like for “Ollo internet Service” that provides internet services, we will design different types of internet speeds and usages with varying prices such as below: Weekly Plan Speed Steady 256 Kbps Fast 512 Kbps Usage 0.5 GB 1.0 GB 0.5 GB 1.0 GB Price BDT 99 BDT 149 BDT 129 BDT 200 ii. Optional Product Pricing: This is pricing optional or accessory products sold with the main product to maximize profit. Like “Ollo internet Service” provides two accessories, Cradle and Cable, which come with different prices to be used with their Dongle. So if you want you can choose either or neither. iii. Captive-Product Pricing: It is pricing the products that must be used with the main product. So to use “Ollo internet Service” we need to use either one of the following products, whose uses vary with its prices. CPE Dongle Indoor Outdoor WiFi Router Free Usage Volume (GB) 3.0 3.0 3.0 Unlimited Price (BDT) 1,489 4,834 9,989 6,999 iv. By-Product Pricing: It is pricing the low-value by-products to get rid of them and to make the main products price competitive. As services do not produce any by-products we cannot apply this strategy for “Ollo internet Service”. v. Product-Bundle Pricing: Pricing bundles of products, which includes slow moving and fast moving products, to be sold together. Such as “Ollo internet Service” making monthly packages to not only sell Page 2

different speeds with different usage sizes but also different accessories such as follows. Monthly Plan Steady Fast Speed Usage 2.5 GB 256 Kbps 4.0 GB 6.0 GB 3.5 GB 6.0 GB 12.0 512 Kbps GB 30.0 GB CPE Dongle Dongle + Cradle Dongle + Cable Dongle + Cradle/Cable Dongle/ Indoor Price BDT 2,000 BDT 5,000 BDT 5,500 BDT 8,000 BDT 9,000 Dongle/ Indoor /Outdoor BDT 14,000 Indoor Router BDT 16,000 /Outdoor/ WiFi As we know product mix pricing strategy is applied to products that have already crossed their growth stage and are entering the maturity stage. That is why we are trying to price our services to beat the competition and to encourage the customers to switch brands. And we believe to do this we should follow the product bundle pricing strategy which would lead to maximizing our profits while defending our market share. Page 3

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