Case study of "Ollo Internet service" For Mr. Husain Salilul Akareem's class

1. SEC 03
MKT 201: Principles of Marketing
Mr. Husain Salilul Akareem
Samiya Yesmin 11304043, Jannatul Ferdous 11104096, Tabassum Anwar 11104116
7/3/2012
Assignment on Case study of “Ollo internet Service” internet service and
how to apply product mix pricing strategies on it to maximize profit.

2. Product Mix Pricing Strategies are on products that are already available in
the market. It is of five types, which we will apply to “Ollo internet Service” as
follows:
i.
Product-Line Pricing: This is setting prices across an entire product
line. Like for “Ollo internet Service” that provides internet services,
we will design different types of internet speeds and usages with
varying prices such as below:
Weekly Plan
Speed
Steady
256 Kbps
Fast
512 Kbps
Usage
0.5 GB
1.0 GB
0.5 GB
1.0 GB
Price
BDT 99
BDT 149
BDT 129
BDT 200
ii.
Optional Product Pricing: This is pricing optional or accessory
products sold with the main product to maximize profit. Like “Ollo
internet Service” provides two accessories, Cradle and Cable, which
come with different prices to be used with their Dongle. So if you
want you can choose either or neither.
iii.
Captive-Product Pricing: It is pricing the products that must be used
with the main product. So to use “Ollo internet Service” we need to
use either one of the following products, whose uses vary with its
prices.
CPE
Dongle
Indoor
Outdoor
WiFi Router
Free Usage Volume (GB)
3.0
3.0
3.0
Unlimited
Price (BDT)
1,489
4,834
9,989
6,999
iv.
By-Product Pricing: It is pricing the low-value by-products to get rid
of them and to make the main products price competitive. As services
do not produce any by-products we cannot apply this strategy for
“Ollo internet Service”.
v.
Product-Bundle Pricing: Pricing bundles of products, which includes
slow moving and fast moving products, to be sold together. Such as
“Ollo internet Service” making monthly packages to not only sell
Page 2

3. different speeds with different usage sizes but also different
accessories such as follows.
Monthly Plan
Steady
Fast
Speed
Usage
2.5 GB
256 Kbps 4.0 GB
6.0 GB
3.5 GB
6.0 GB
12.0
512 Kbps
GB
30.0
GB
CPE
Dongle
Dongle + Cradle
Dongle + Cable
Dongle + Cradle/Cable
Dongle/ Indoor
Price
BDT 2,000
BDT 5,000
BDT 5,500
BDT 8,000
BDT 9,000
Dongle/ Indoor /Outdoor
BDT 14,000
Indoor
Router
BDT 16,000
/Outdoor/
WiFi
As we know product mix pricing strategy is applied to products that have
already crossed their growth stage and are entering the maturity stage. That is
why we are trying to price our services to beat the competition and to encourage
the customers to switch brands. And we believe to do this we should follow the
product bundle pricing strategy which would lead to maximizing our profits
while defending our market share.
Page 3