The document discusses a case study of a fast food stall selling Vada Pav in Mumbai that failed after 6 months. While the stall had a good location and ambiance, its main mistake was pricing its Vada Pav higher than competitors, as well as offering too wide a range of products for customers in a hurry. To succeed, it should have reduced its product range to 3 items and offered promotional combo offers or coupons to attract new customers.

1. Case Study
IMPORTANCE OF PRODUCT PRICING
- Sisir Ghosh

2. Background
 The study is about fast food stall selling Vada Pav which is a popular food
item in Mumbai started by the locals but the stall did not last for more
than 6 months.

3. Right steps taken
 Location- The stall was situated in such a vicinity where people would pass
by the stall while going to the railway station commuting for office in the
morning and while going home in the evening
 Ambience- The stall was beautifully designed which represented hygiene
and was welcoming for the people to visit and order food
 Accessibility- The orders were taken precisely, service was quick and the
range of products were visible on the board mounted on wall
 Investment- Consistent inflow of cash for 6 months for running the
business and reaching the break even point.
 Food- Vada Pav is the most preferred fast food liked by the locals

4. Mistakes done
 Pricing- Vada Pav offered by the stall was priced higher than the neighbouring food
stalls
 Huge range of products- People commuting to office or returning home in the evening
would not read all the range of foods available on the menu
 Offer attraction- Capturing new customers requires certain combo package within the
minimal budget
 Many competitors- many other food stalls were available where Vada Pav was easily
available
 Resistance to change- Even after successive failure of attracting customers to the stall for
3 months, no new promotion was conducted by the owners

5. What could have been done
 Reduce range of products- Since it’s a fast food, maximum 3 products could have
worked
 Combo offers/ coupons- Promotional activities could have been offered to customers for
attractions

6. THANK YOU