Baltika Breweries: Product-line Pricing and Brand Positioning (Case Study)

Abstract

The case was written for the use in multilevel study programs within the courses “Pricing Strategies” and “Marketing”. The data presented in the case is based on a field research, conducted in the company Baltika Breweries This case is designated to develop skills and experience in developing pricing strategy of companies and should contribute to the in-depth understanding of Product-line pricing and Price positioning Baltika Breweries (Part of the Carlsberg Group) is the biggest beer producer in Russia working at a market with a very big number of brands. Unfavourable trends in the development of the Russian beer market resulted in a sustainable decline in demand and production, a decrease in consumer purchasing power, and an increase in the role of price at purchasing, approximation of prices for products under different brands, acute limitation of opportunities in product promotion and delivery of emotional benefits of the brand to the buyers. Under such circumstances, the problems of Product-line pricing and Price positioning of the brands become particularly relevant.