My observations(Case 1)

Gone are the days when companies have only one product for the customer, emphasize on production rather on the customers wants and preference . Companies led to massive production and distribution , leading to huge price cuts based on large economies of scale , but pricing nowadays is a big nemesis to all leading companies as they have to fight competition with being customer centric . Pricing has to be done so that customer feels that he is getting the best value for the product , but the problem arises when there are price wars and companies take price as the basis for differentiation though it is rarely done , i am citing one example of a company called Shaw Wallace under UB group whose brand Antiquity has two variants Antiquity regular and Antiquity Blue , Antiquity has positioned itself as a premium whisky brand catering to the elite but i was surprised by the way both the variants were priced ,.Antiquity regular at 160 and Antiquity Blue at 170 , Antiquity Blue comes with a beautiful bottle and package , it looks elegant and sophisticated giving justification to its image whereas Antiquity regular is priced at 160 which has a normal packaging and its bottle is bland and plain. People who buy Antiquity come from the upper middle class and rich class , they dont find a significant difference in the price difference and opt for the exquisite Blue . Shaw wallace with this kind of pricing has allowed cannabilazation to take place , thus resuting in reduction of sales in Antiquity regular . I think with time they have to either reduce the prices of regular or increase the price of Antiquity Blue.