Pricing

Product Mix Pricing:

Product Mix (AMA): The full set of products offered for sale by an organization. The product mix includes all product lines and categories. It may be defined more narrowly in specific cases to mean only that set of products in a particular product line or a particular market. 

Product Mix Pricing: When a product is a part of a product mix, a different price-setting must be considered as opposed to it being a single product..Here the Company searches for a set of prices that maximize profits on the total mix. 

At MTR, their product mix consists of :  

• MTR Snackup
• Masala Powders
• Sweet Mixes
• Breakfast Mixes
• Ready to Eat
• Ready to Cook
• Drinks
• Vermicelli
• Pure Spices
• Snack Mixes
• Meal Mixes
• Masala Pastes
• Sweets
• Pickles
• Soups

So, the pricing strategy for Ready to Eat is not completely independant. Pricing of the whole mix has to be kept in mind. 

Broadly, there are 6 situations that call for product mix pricing.

1. Product Line Pricing: For the product line of Ready to Eat, the prices range from Rs.75-50 depending on the dish and the quantity offered. Typically, curries range from Rs.75-50 in 300 mg cartons, whereas the meals(rice) are typically placed at Rs.50 for a 250-300 mg carton.
2. Optional Feature Pricing: Many companies offer additional products, features and services with their main product. It is tricky because the Company should decide which features to include in the standard price and which to offer seperately. Typically for FMCG products, there are no optional features.
3. Captive Product Pricing
4. Two-Part Pricing
5. By-Product Pricing
6. Product Bundling Pricing

Typical FMCG products, specially food, does not require all the other pricing situations except Product line pricing. Product Bundling Pricing may be applied when the sales go down for individual products or when the Company has to increase sales in terms of the units sold.

MTR has Product bundling pricing for RTC products during festive seasons for the best selling products. For example,