Chapter11 Pricing Strategy @CasesBigCola Yunik,Novi,Ridwan

8/4/2019 Chapter11 Pricing Strategy @CasesBigCola Yunik,Novi,Ridwan

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Yunik Trianti

090043

4

Novi Arianti09017

86

Ridwan

Kurniawan

090639Chapter 11



Chapter 11



Type : Private Company

Headquarters : Lima, Peru

Address : Avenida La Paz Lt 30, Lima 15, Peru

Phone : (51 1) 371-1812Founded : 1988 as Industrias AA ± aa ± os

Figure : Angel Ananos, CEO & Chairman CarlosAnanos, Managing Director

Web : www.Ajegroup.Com Expansion : Ecuador, Colombia, Brazil, Venezuela,

Costa Rica, Mexico, Thailand, Vietnam,India, and Indonesia

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http://www.ajegroup.com/




Vision

Being one of the top20 multinationalenterprises by year2020

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Mission

Contribute to develop

society wealth by being

the best-elaborated

products' choice andseeking excellence from

an integral perspective.

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Organization

Value

• Passion• Unity

• Simplicity

• Congruence

• Respect

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History of AJE1988: Eduardo Ananos andhis wife began making softdrinks in Ayacucho, Peru

1994: Ananos Industry hasfactories in eight cities.

1997: Company enters Lima,Peru's capital, under thebranded soft drinks.

1999: Industrial Ananosopened its first plant outsideof Peru, in Venezuela.

2002: The company startedoperations in Mexico.

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2005: The company, nowcalled Ajegroup, has 15factories in various LatinAmerican countries.

2006: Ajegroup entered Asiawith a factory in Thailand.

2007: Ajegroup company

introduced the first beerthat; Ajegroup has 22production plants in 13countries.

2010: Ajegroup enteredIndia and Indonesia

2011 : Seals deal with The FAEngland and F.C. Barcelona.

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ProductChapter 11


http://slidepdf.com/reader/full/chapter11-pricing-strategy-casesbigcola-yuniknoviridwan 10/53Chapter 11


http://slidepdf.com/reader/full/chapter11-pricing-strategy-casesbigcola-yuniknoviridwan 11/53Chapter 11



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Marketing

Minimalize Production Costs

Analyze each characteristic of thecompetitor. (tactics and practices)

Doing business expansion to severalcountries with rapid expansion.

Become a Sponsor FC Barcelona and theFA England.

Making pictures of the players at FCBarcelona as a brand BIG COLA

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Pepsi

Type : Cola

Manufacturer :PepsiCo.

Country of origin :United States

Introduced : 1898 (as Brad'sDrink)

June 16, 1903 (asPepsi Cola)

1961(as Pepsi)

Related products :Coca-Cola

7 UpIrn BruCola TurkaChapter 11



Coca Cola

Type :Soft drink

Manufacturer :The Coca-ColaCompany

Country of origin :United States

Introduced :1886Color :Caramel E-150d

Variants :See Brandportfolio sectionbelow

Related products : PepsiRC ColaCola TurkaZam Zam Cola

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What is the advantage BigCola?

No caffein

Using materials - local

materials that are

environmentally friendly in

their production process

Low Price, Big Size

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Which one do you want?

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500ml

Rp.5900

500ml

Rp.5900

535ml

Rp.3000



Cases

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Can A Peruvian Drinks Giant Take On

Coke And Pepsi?

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Peruvian drinks company AjeGroup announced last

week that it is issue its first bond, worth US$200mn,

to fund expansion into Asia and Latin America and

revealed it was also considering an IPO (initial publicoffering). The prospect of more rapid growth for Aje

is not likely to be well received at The Coca-Cola

Company (Coke) and PepsiCo, with the Peruvian

firm currently increasing market share across LatinAmerican and Asia thanks to a well received strategy

of undercutting the prices offered by the two soft

drinks giants. (www.riskwatchdog.com)



1) The institutionalization of operations.

2) The replication of the experience

learned in Peru with respect to leaving

behind the conventional and doingthings differently.

3) “Exploding” the markets.

4) The reinforcement of professional

development for its managerial and

executive staff.

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Democratizing consumption

AJE’s product value proposals

The multiplier effect Modernization of operations

From grass-roots to multinational

Growing as a family

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DISCUSSION

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Appropriate pricing strategy for anitem is a competitive and verydynamic in all of the companies

because there is deregulation,information for consumers andcompetition intensity, slow growthin many markets, and the chance to

dominate the market.

(David,W.Creaven,2009:347)

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Pricing strategies according to Kotler

(2000:365), among others:

Product pricing strategy

Product mix pricing strategies

Price adjustment strategies

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According to Kotler and Armstrong(1994),pricing strategy is divided into

two main factors to consider in settingthe price, namely:

Internal factors

External factors.

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According Indriyo (2001:226), pricing isthe price set by the company'sproducts based on three basic viewswhich include:

Cost

Consumer

Competitor

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ADVANTAGE DISADVANTAGE

Easy to calculate ignoring the consumer

Needs least informal Ignoring the competitor

Easy to manageUsing cost accounting rather

than replace the value

stabilize the marketIncorporating the cost of

missing is not an additional cost

ethical advantage Ignoring the alternative costChapter 11



According Swastha (1999:242), GoalSetting Sales Price Products Namely By:

Increase sales Maintain or improve market share

price stability

Achieving a target return on investment

Achieve maximum profit

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According Simamorang (2001:193) Factors

That May Affect Pricing Between OtherProducts:

Starting point, a situation which includes demand

and market competition.

Limiting factors that occur at the cost of the

placement price, the marketing mix, expectations,

intermediaries, and macro environmental factors.

Managerial aspects of the authorized organizationas a factor in setting prices in the company.

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Steps in Selecting a Pricing Strategy

Set PricingObjectives

Analyzing the

PricingSituation

Select PricingStrategy

Determine SpecificPrices And

Policies

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The Implementation AgainstModel

Chapter 11

S S PT Aj G



Some Steps PT AjeGroup,in pricing:

Set PricingObjectives

Analyzing

the PricingSituationSelect

PricingStrategy

DetermineSpecific PricesAnd Policies

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How PT AjeGroup Analize TheSituation Of Price :

Analyzing thePricing Situation

Customer

Price Sensitivity

Product

Costs

Competitors

Likely Responses

Pricing

Objectives

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Customer PriceSensitivity



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Product Costs



-20

-10

0

10

20

30

40

50

60

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Soft drinks and carbonated beverages pricetrends (1994 zero base)

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(Source: Bank of Mexico)

Competitors LikelyResponses



Chapter 11

Pricing Objectives

SL A/B

SL C/D/E

SL A = Upper/upper middle

SL B = Middle

SL C = Upper lower

SL D = LowerSL E = Marginal

SL: Socioeconomic Level

Source: Market Research Business Association

(Asociación de Empresas de Investigación de Mercados)



How to select the strategy to setthe price of the product :

Demand-Cost Gap

Demand

PricingObjectives

Cost

Competitors

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Chapter 11

Demand

(Ajegroup Produksi - Sumber: dikembangkan oleh penulis)



Chapter 11

Pricing Objectives

Target object as its customers

are middle to lower

community as its main target



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Cost

No royalty payments, becauseAjegroup syrup having its ownformula (Juice).

Low production costs, due to

large bottles so that high scaleand low cost per liter. Low-costfinancing.

Ajegroup finance investments withits own funds and with the

resource suppliers.Outsourcing of distribution andsales network.

Low marketing costs.



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Competitors

H D i S ifi



How to Determine SpecificPrices And Policies

The Philosophy of the Right Price

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The PriceVolumeQuality Offer

EfficientProcesses

LightOrganizationalStructure



PT AJEGroup goals using the strategy to set theprice of product :

1. Increase sales

2. Maintain or improve market share

price stability3. Achieving a target return on investment

4. Achieve maximum profit

5. Can compete with the global market,especially with similar competitors

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Summary

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Strategy Pricing (Pricing Strategy) is to use price as animportant part in competing with global competition

and the opportunity to master the global market.

In determining the price on a product takes severalcriteria, namely:

Cost = how big the resulting production costs whenproducing the product.

Consumer = to whom the company will sell the product.

Competition = anyone competitors will face when the

product is ready to be marketed.

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And then:

PT AJEGroup consider several things beforedeciding on the price of its product, such as:

Production costs

Consumer competitors

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Bibliography

www.riskwatchdog.com , akses 16.04, 24 july2011

www.Ajegroup.com , akses 13.00, 26 july 2011

www.wikipedia.org , akses, 13.00, 26 july 2011 www.elqorni.wordpress.com , akses, 19:00, 4

agustus 2011

www.upi.edu.com , akses, 19:30, 4 agustus 2011

www.indrabudhi.wordpress.com , akses, 21:30, 4

agustus 2011

www.detikhots.info , akses, 19.00, 4 agustus 2011

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http://www.riskwatchdog.com/



http://www.wikipedia.org/

http://www.elqorni.wordpress.com/

http://www.upi.edu.com/

http://www.indrabudhi.wordpress.com/

http://www.detikhots.info/

http://www.detikhots.info/

http://www.indrabudhi.wordpress.com/

http://www.upi.edu.com/

http://www.elqorni.wordpress.com/

http://www.wikipedia.org/



http://www.riskwatchdog.com/



David,W.Creaven,2009:347

David,W.Creaven,2009:351-353




Chapter 11



Nama :Yunik TriantiNIM : 0900434

Tgl lahir :12 July 1991

Email :

[email protected]

m

Nama :Novi AriantiNIM : 0901786

Tgl lahir :11 Nov 1990

Email :

[email protected]

om

Nama :RidwanKurniawan

NIM : 0906390

Tgl lahir :14 Maret 1991

Email :

[email protected]

CV

Chapter 11



Terima Kasih

Chapter11 Pricing Strategy @CasesBigCola Yunik,Novi,Ridwan

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