Pricing

Selecting the pricing objective:

• While there are several factors for setting the pricing, Quaker Oats under Pepsico follows "maximum market share" scheme. They believe a higher sales volume will lead to lower unit costs and higher long-run profit. They set the lowest price, assuming the market is price sensitive and a low price stimulates market growth.

• Production and distribution costs fall with accumulated production experience and a low price discourages actual potential competition.

• Quaker Oats is a 100% wholegrain and natural source of carbohydrates and dietary fibre. It has strong heart health benefits and has a soluble fibre called βeta Glucan, which is scientifically proven to help reduce cholesterol.

•  It regulates sugar and weight control; easy to digest; filling and energizing (product features that appeal to people).

• Lately, it came up with Masala, Chocolate chip, Cinnamon and Cardamom flavours which are appealing to Indian Palate (more choices). 

• Oats are prepared by mixing with boiling water and stirring, hence being referred to as "instant"; once mixed, the oatmeal is ready within a minute. It can also be prepared by adding up to 2/3 cup of water and microwaving for 30-60 seconds (ease and convenience).

• They have maintained their prices during the stages of development and growth in product life cycle (consistency in price).

• It's competitors like saffola oats sells a 40gm pack for Rs 15 and Horlicks sells a 26gm pack for Rs10 unlike Quaker Oats which sells 28gm for Rs 10 (with all the flavours at the same price) (perceived value).

• It's available at almost every kirana store at the same price as that in a general store or a mart (easy availability).