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What pricing strategy will be used to launch: (i) a high end smart phone in the market.(ii) shampoo in the market. |
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Answer» (i) Skimming pricing strategy should be used to launch a high and smart phone in the market. In this strategy a very high price is set so that in the initial stages the cream of the demand may be skimmed and the investment made in the product is quickly realised. The aim is to ‘Sell to Classes’ who don’t care how much they pay for a good product. This price may be reduced later on to tap other segments of the market. This strategy is appropriate in case of a highly distinctive product which is aggressively promoted in early stages. (ii) Penetrating pricing policy should be used to launch shampoo is the market. This strategy involves setting a low price in the initial stage so as to make brand quickly popular and to maximise the market share. The ‘ manufacturer seeks to sell to the masses. Many firms use this strategy while launching fast moving consumer products. |
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