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Atlantic AC2 PPT

The document discusses pricing options for Atlantic Computer's new Tronn server and PESA software tool. It analyzes pricing the bundle competitively based on their largest competitor Ontario's pricing of similar servers, through expected sales projections over 3 years, and by valuing the bundle based on performance benefits over competing options. The recommendation is to use a value-in-use pricing strategy for the Tronn server and PESA tool bundle.

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Satyajit sahoo
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32 views7 pages

Atlantic AC2 PPT

The document discusses pricing options for Atlantic Computer's new Tronn server and PESA software tool. It analyzes pricing the bundle competitively based on their largest competitor Ontario's pricing of similar servers, through expected sales projections over 3 years, and by valuing the bundle based on performance benefits over competing options. The recommendation is to use a value-in-use pricing strategy for the Tronn server and PESA tool bundle.

Uploaded by

Satyajit sahoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Atlantic Computer

A bundle of Pricing Options

Submitted By: AC 2
Abhirami Anil Kumar
Akash Tripathi
Palak Rajput
Sanjay Dadwani
Satyajit Sahoo
Case Analysis
• Atlantic computer is a manufacturer of Servers and High-Tech products.

• Market Segments: 1)Traditional Market


2) Basic Server Market

• It offers one of the premium product RADIA, Which proved to be Market Leader.

• Basic market is the potential and most growing market.

• In Basic market, Atlantic has developed server Tronn.

• It also developed a software tool PESA, Performance Enhancing Server Accelerator.

• PESA helped in improving Tronn Server.

• Competitors: Ontario ( 50% Market share with its product Zinc)


Pricing Options Available
Option 1
• Cost : $2,000
• Includes: Charging for Tronn Server and PESA tool for free
• Forego the amount of R&D Investment done in PESA Software that
amounts to $20,00,000.

Option 2
• Competition based pricing.
• Conservatively 2 Tronn servers should be equal to 4 Zinc Servers and Aggressively
1 Tronn server will be equal to 4 Zinc Servers.
• Price of 4 Zinc Server = 1700*4 = 6,800.
• In case of Conservative : $3400

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Pricing Options Available
Option 3
• Expected sales in 3 Years = (4*50000 + 9*70000 +14*92000) / 100
• Cost of Tronn server = $ 1538

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Pricing Options Available
Option 4
• Value in use pricing
• Conservatively 2 Tronn servers + PRESA is equivalent to 4 Zinc Servers

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What are we doing?
• We are going with alternative 4 (Value in Pricing)
Reasoning:
• More value through monetary benefits

• Price conflict is not a healthy option as Tronn itself is $1538 while Ontario
sells the zinc at $1700. also, Atlantic has to bear the cost of PESA in case
Ontario lower the Price it will be cumbersome for Atlantic to Survive.

• If Revenue increase profit will also increase.

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THANK YOU!!

“Business opportunities are like buses.


There's always another one coming.”

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