Baltika Breweries: Product-Line Pricing and Brand Positioning

Abstract

Baltika Breweries (part of the Carlsberg Group) is the biggest producer of beer in Russia and competes with a number of other brands for market share. Unfavourable trends in the Russian beer market between 2014 and 2015 resulted in a decline in demand and production of beer. The shrinking Russian beer market led to a decrease in consumer purchasing power and an increase in the role of price at purchasing. The decline in demand also resulted in limited opportunities for product promotion and the delivery of emotional benefits of the brand to buyers. Under such circumstances, the problems of product line pricing and price positioning of the brands become particularly relevant. The case allows students understanding the problems of price positioning and developing analytical abilities of students during development of product line pricing strategy.

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