Q1) What are the essentials

determinants of strategic pricing

for Maggie ?
Ans – i) Value Creation -
Maggie must focus on a healthier
product through redesigned
labels,
packaging like “all-natural, no
additives”.
ii) Pricing Policy - Maggie has a
market share of 60% so that’s
means that customers are price
insensitive in case of an increase.
Maggie should increase the price
by 20% to both cover losses and
signal increased quality.
iii) Value Communication - They
must communicate the value to
the customers. Maggie needs to
communicate the relaunch to
consumers via various mediums
of ATL and BTL, it can also take
a
strong brand ambassador with a
neutral image across the country
which will further aid in
communicating to the customers.
Q2) During the Product Relaunch
what are the various
psychological theory that may
influence
buyers’ perception ?
Ans – There may be various
psychological factors at play that
may affect the buyer’s perception
of
Maggie’s relaunch, but the main
factors are –
i) Trust – Trust is the most
crucial factor in the food
segment, Maggie has broken the
trust
of the consumers and now must
gain back that trust by all means.
ii) Taste – Any change
Maggie makes maybe turn into a
psychological effect in the
consumer's mind, in which
despite there being no change the
consumer may perceive
Maggie’s taste to be different.
They must avoid the new coke
effect.
iii) Ease Of Use – Maggie
should ensure that any change it
makes does not affect its
promise of 2-minute noodles and
affect its ease of use.
Q3) How will B2B customers as
compared to B2C customers
respond to any kind of price
change or
discount offered by Nestle for the
relaunch of Maggi?
Ans – In the B2B customers
segment (café’s, Stalls,
Cafeteria’s, etc.), the value added
by them is high
making Maggie a relatively low-
cost input in their final product,
therefore they are less affected by
the price of Maggie. And are thus
inelastic to price, and therefore
will have a neutral reaction to any
kind of price change or discount
offered.
In the B2C customer segment, the
customer is very price sensitive,
but Maggie also enjoys a
relatively high market share and
thus will be able to affect a small
price increase. The reaction of
customers to a price decrease and
discount offered will be positive
and reaction to an increase in
price may turn negative
depending on the consumer
behaviour and the scale of the
increase.
Q1) What are the essentials
determinants of strategic pricing
for Maggie ?
Ans – i) Value Creation -
Maggie must focus on a healthier
product through redesigned
labels,
packaging like “all-natural, no
additives”.
ii) Pricing Policy - Maggie has a
market share of 60% so that’s
means that customers are price
insensitive in case of an increase.
Maggie should increase the price
by 20% to both cover losses and
signal increased quality.
iii) Value Communication - They
must communicate the value to
the customers. Maggie needs to
communicate the relaunch to
consumers via various mediums
of ATL and BTL, it can also take
a
strong brand ambassador with a
neutral image across the country
which will further aid in
communicating to the customers.
Q2) During the Product Relaunch
what are the various
psychological theory that may
influence
buyers’ perception ?
Ans – There may be various
psychological factors at play that
may affect the buyer’s perception
of
Maggie’s relaunch, but the main
factors are –
i) Trust – Trust is the most
crucial factor in the food
segment, Maggie has broken the
trust
of the consumers and now must
gain back that trust by all means.
ii) Taste – Any change
Maggie makes maybe turn into a
psychological effect in the
consumer's mind, in which
despite there being no change the
consumer may perceive
Maggie’s taste to be different.
They must avoid the new coke
effect.
iii) Ease Of Use – Maggie
should ensure that any change it
makes does not affect its
promise of 2-minute noodles and
affect its ease of use.
Q3) How will B2B customers as
compared to B2C customers
respond to any kind of price
change or
discount offered by Nestle for the
relaunch of Maggi?
Ans – In the B2B customers
segment (café’s, Stalls,
Cafeteria’s, etc.), the value added
by them is high
making Maggie a relatively low-
cost input in their final product,
therefore they are less affected by
the price of Maggie. And are thus
inelastic to price, and therefore
will have a neutral reaction to any
kind of price change or discount
offered.
In the B2C customer segment, the
customer is very price sensitive,
but Maggie also enjoys a
relatively high market share and
thus will be able to affect a small
price increase. The reaction of
customers to a price decrease and
discount offered will be positive
and reaction to an increase in
price may turn negative
depending on the consumer
behaviour and the scale of the
increase.
Q1) What are the essentials
determinants of strategic pricing
for Maggie ?
Ans – i) Value Creation -
Maggie must focus on a healthier
product through redesigned
labels,
packaging like “all-natural, no
additives”.
ii) Pricing Policy - Maggie has a
market share of 60% so that’s
means that customers are price
insensitive in case of an increase.
Maggie should increase the price
by 20% to both cover losses and
signal increased quality.
iii) Value Communication - They
must communicate the value to
the customers. Maggie needs to
communicate the relaunch to
consumers via various mediums
of ATL and BTL, it can also take
a
strong brand ambassador with a
neutral image across the country
which will further aid in
communicating to the customers.
Q2) During the Product Relaunch
what are the various
psychological theory that may
influence
buyers’ perception ?
Ans – There may be various
psychological factors at play that
may affect the buyer’s perception
of
Maggie’s relaunch, but the main
factors are –
i) Trust – Trust is the most
crucial factor in the food
segment, Maggie has broken the
trust
of the consumers and now must
gain back that trust by all means.
ii) Taste – Any change
Maggie makes maybe turn into a
psychological effect in the
consumer's mind, in which
despite there being no change the
consumer may perceive
Maggie’s taste to be different.
They must avoid the new coke
effect.
iii) Ease Of Use – Maggie
should ensure that any change it
makes does not affect its
promise of 2-minute noodles and
affect its ease of use.
Q3) How will B2B customers as
compared to B2C customers
respond to any kind of price
change or
discount offered by Nestle for the
relaunch of Maggi?
Ans – In the B2B customers
segment (café’s, Stalls,
Cafeteria’s, etc.), the value added
by them is high
making Maggie a relatively low-
cost input in their final product,
therefore they are less affected by
the price of Maggie. And are thus
inelastic to price, and therefore
will have a neutral reaction to any
kind of price change or discount
offered.
In the B2C customer segment, the
customer is very price sensitive,
but Maggie also enjoys a
relatively high market share and
thus will be able to affect a small
price increase. The reaction of
customers to a price decrease and
discount offered will be positive
and reaction to an increase in
price may turn negative
depending on the consumer
behaviour and the scale of the
increase.
Q1) What are the essentials
determinants of strategic pricing
for Maggie ?
Ans – i) Value Creation -
Maggie must focus on a healthier
product through redesigned
labels,
packaging like “all-natural, no
additives”.
ii) Pricing Policy - Maggie has a
market share of 60% so that’s
means that customers are price
insensitive in case of an increase.
Maggie should increase the price
by 20% to both cover losses and
signal increased quality.
iii) Value Communication - They
must communicate the value to
the customers. Maggie needs to
communicate the relaunch to
consumers via various mediums
of ATL and BTL, it can also take
a
strong brand ambassador with a
neutral image across the country
which will further aid in
communicating to the customers.
Q2) During the Product Relaunch
what are the various
psychological theory that may
influence
buyers’ perception ?
Ans – There may be various
psychological factors at play that
may affect the buyer’s perception
of
Maggie’s relaunch, but the main
factors are –
i) Trust – Trust is the most
crucial factor in the food
segment, Maggie has broken the
trust
of the consumers and now must
gain back that trust by all means.
ii) Taste – Any change
Maggie makes maybe turn into a
psychological effect in the
consumer's mind, in which
despite there being no change the
consumer may perceive
Maggie’s taste to be different.
They must avoid the new coke
effect.
iii) Ease Of Use – Maggie
should ensure that any change it
makes does not affect its
promise of 2-minute noodles and
affect its ease of use.
Q3) How will B2B customers as
compared to B2C customers
respond to any kind of price
change or
discount offered by Nestle for the
relaunch of Maggi?
Ans – In the B2B customers
segment (café’s, Stalls,
Cafeteria’s, etc.), the value added
by them is high
making Maggie a relatively low-
cost input in their final product,
therefore they are less affected by
the price of Maggie. And are thus
inelastic to price, and therefore
will have a neutral reaction to any
kind of price change or discount
offered.
In the B2C customer segment, the
customer is very price sensitive,
but Maggie also enjoys a
relatively high market share and
thus will be able to affect a small
price increase. The reaction of
customers to a price decrease and
discount offered will be positive
and reaction to an increase in
price may turn negative
depending on the consumer
behaviour and the scale of the
increase
Q1) What are the essentials determinants of strategic pricing for Maggie ?

Ans – i) Value Creation - Maggie has to concentrate on creating a product with improved labelling
and packaging, such as "all-natural, no additives."

ii) Pricing Policy - Given that Maggie has a 60% market share, it follows that customers are
unaffected by price increases. Maggie ought to raise prices by 20% to both make up for losses and
denote improved quality.

iii) Value Communication - Customers must be informed of the value. Customers must be informed
about Maggie's relaunch via various ATL and BTL mediums. It may also be necessary to hire a strong
brand ambassador with a trustworthy reputation across the nation who will help with customer
outreach.
Q2) During the Product Relaunch what are the various psychological theory that may influence
buyers’ perception ?

Ans – There may be a number of psychological elements at work that might influence how
customers view Maggie's relaunch, but the primary ones are -

i) Trust – The most important aspect in the food industry is trust, and because Maggie has betrayed
the public's confidence, she now needs to use all available means to restore it.

ii) Taste – Any adjustment Maggie makes might have a psychological impact on the customer,
leading them to believe that Maggie's taste has changed even when there hasn't been any change.
They have to stay away from the new Coke impact.

iii) Ease Of Use – Maggie must make sure that any modifications don't compromise the 2-minute
noodles they promise to provide or their usability.

Q3) How will B2B customers as compared to B2C customers respond to any kind of price change or
discount offered by Nestle for the relaunch of Maggi?

Ans – The value added by B2B customers (cafés, stalls, cafeterias, etc.) makes Maggie a relatively
low-cost input in their finished product, so they are less affected by Maggie's price. And as a result,
have a fixed response to price changes and discounts, making them inelastic to price. Maggie has a
substantial market share and may thus influence a slight price rise in the B2C client category, where
the consumer is particularly price sensitive. Customers will respond favourably to price reductions
and discounts provided, but depending on consumer behaviour and the magnitude of the price rise,
they may react negatively.