Atlantic Computer: A bundle of Pricing Options

MARKETING CASE STUDY-4

Atlantic Computer: A bundle of
Pricing Options

Group 3
MBA Class of 2014
Alma Graduate School

PRESENTATION OUTLINE
Introduction
 Overview
 Issues
 Analysis
 Recommendations
 Strategic Implications


INTRODUCTION
Atlantic Computer has developed a new Tronn server and PESA software tool known as Atlantic Bundle and needs the right market price strategy for this product.
 The challenge is to attract customers and outcompete direct and main competitors in terms of prices, performance efficiency, reliability and quality.
 The main purpose and focus of this report is to provide a solution to the above challenge by coming up with the right pricing strategy.
 A detailed quantitative, qualitative and other factors such as competition and customer demand has been analyzed in this report and recommendations have been proposed.


OVERVIEW
The Tronn server has been developed specifically to meet an emerging U.S market place opportunity of
Basic Server users. Tronn computer is to be sold with the specific PESA software to boost performance
 The basic market segment was dominated by the main competitor, Ontario which claimed a revenue market share of 50% with its product line, Zink
 Atlantic Company current policy is to give software to customers for free upon purchase of servers
 However now a pricing strategy needs to be chosen


charge only for the hardware and give the PESA software tool for free
 charge a price equal to what the customer would pay for four
Ontario Zink servers
 charge a price based on cost-plus approach for PESA
 charge a price based on value-in-use pricing.


ISSUES
Product and Bundle





Current product of Altantic is the Radia, which is a leading product in the high performance servers market.
Atlantic has developed a new server called Tronn and a
Performance Enhancing Server Accelerator, PESA, which will enhance the Tronn server’s speed