Market Penetration Pricing Helped a Foldable Devices Manufacturer Capture 12% of the Total Addressable Market (TAM)
Market penetration and pricing are two critical challenges for businesses across industries, especially for startups trying to make an impact in a specific region or industry. A market penetration pricing strategy aims to help businesses accelerate product and service acceptance by attracting customers with low initial prices.
It can be seen as an effective strategy to grow a customer base and stand apart from other market competitors. If youre looking to improve brand reach using a market penetration pricing strategy,
Product pricing is a critical aspect in marketing strategy
development and a key determinant of business performance. Price being a metric
that industrial and commercial customers use to judge the value of an offering,
it plays a crucial role in impacting brand selection among competing alternatives. Brands often use a market
penetration pricing strategy to determine and set lower prices for their new
products and services, i.e., prices that are lower than the optimum price range
of a product. Market penetration pricing also helps define a long-range market
price to accelerate market acceptance or to increase the existing market share
of a brand. Request a free proposal to learn how we can help you build effective market penetration pricing strategies to capture a fair share of the total addressable market. The client is a leading player in the smartphone industry. With manufacturing units spread globally, the client had a well-established market presence and was one of the most sought-after brands with a growing customer base. Having made its mark in the smartphone
industry, the client recently launched a new series of foldable devices. However,
the acceptance of the new smartphone did not turn out as perceived by the
client, due to which the client wanted to develop a market penetration pricing strategy
to attract buyers. The challengesfaced by the
companyin selling its newly launched foldable devices had prompted them
to devise different market penetration strategies aimed at increasing sales and
maintaining market position. Therefore, the client wanted to conduct in-depth research
using both primary and secondary data sources to analyze the mode of
penetration being used for different diversified products sold in the market and
strategies helping them attain their existing market position. Using these
research insights, the client wanted to develop a market penetration pricing strategy
to build a customer base for its new product. The need to understand themarket penetration strategies employed by players in the smartphone industry will be crucial in creating the marketing strategies of products that the client wishes to launch to conquer markets in different industries. Therefore, identifying the different strategies that can help edge out and survive the competition was crucial for analyzing the marketfor the new product line. Our experts conducted in-depth research to analyze the market dynamics, competitors offerings, and the client’s overall market penetration strategies. This research aimed to reveal the different modes of market penetration pricing strategies that could benefit the client and accelerate acceptance of the new product. Infiniti’s three-pronged research
methodology aimed to examine how similar products and associated products
managed to venture into new markets and conquer the existing markets. Therefore
questionnaires and subsequent interviews were a part of the initial phase. Data
aggregation, analysis, analysis, and presentation of the data in graphs, charts,
and other appropriate forms were performed in the later stages. Data from secondary
sources were also used to find conclusive evidence for the inferences to be
made from the study. Request a free brochure to gain exclusive insights into the market penetration pricing strategies that can help you improve brand reach. The market penetration pricing strategy devised by our
experts helped the client set a low price for their product during the introductory
phase. By adopting such an approach, the client was successful in increasing
market share and global sales volume. Their objective to reduce production cost
was also achieved, resulting in a high ROI. The market penetration pricing strategy also helped the
client to: A market penetration pricing strategy is a low-risk strategy when compared to other market penetration strategies and is ideal for businesses and startups that are bootstrapped or unwilling to invest heavily in high-risk growth strategies. It exploits how to brands can drive market share and brand reach in an already thriving market where competing products exist. Though positioning yourself in a well-established market is a safe bet, it requires robust implementation and execution of strategies around your product positioning, pricing, and marketing to compete and grow alongside existing companies. Infiniti Research can help you analyze markets and develop suitable market penetration pricing strategies to improve market share. Request more info from our experts to know more about our capabilities. Our strength lies in the unrivaled diversity of our international market research teams, innovative research methodologies, and unique viewpoints that merge seamlessly to offer customized solutions for your every business requirement. Introduction to PFAS Per- and polyfluorinated alkyl substances (PFAS) are a large family of over 9,000 human-made chemicals found in everyday items such as non-stick pans, grease-resistant pizza boxes, and waterproof clothing. These chemicals first appeared in the 1950s and are known for their persistence in the environment and in the human body, earning them […] Introduction Gene editing, an advanced technique in molecular biology, allows scientists to modify, eliminate, or replace mutated genes at the DNA level. This field has experienced remarkable progress due to precision tools like CRISPR and TALENs, which act as molecular scalpels to perform targeted genetic modifications. Precision Tools and Technologies CRISPR-Cas9 is a standout among […] What is the report about? Liquid filters are essential equipment used to separate suspended solids from a fluid stream, typically through a physical barrier called the filter medium. This process is crucial in various industries, particularly in the production of goods intended for human consumption such as beverages and drinking water. Market Segmentation The global […] Nonwoven fabrics, traditionally used in wipes and medical textiles, now span a broader range of industries, including automotive, geotextiles, and architecture. Their adaptability makes them essential in air and liquid filtration, agriculture, and beyond. Sustainability and Eco-Friendliness Growing environmental consciousness drives the future of nonwoven fabrics. Sustainable innovations in sourcing and manufacturing integrate biodegradable and […] Generative AI leverages algorithms to create content, ideas, and solutions traditionally reliant on human creativity. It trains models to learn patterns and generate new content, benefiting industries like banking, retail, and healthcare. Generative AI enhances creativity by crafting art, composing music, and writing stories, while AI tools assist content creators by automating tasks, suggesting ideas, […] Written By: Vishesh Kumar Where has the pricing strategy model gone wrong and how to fix it? How much to charge for my product or service? What is going to be my strategy of pricing? Those are key questions staring at senior executives responsible for making decisions around the pricing model at any enterprise. In […]What is Market Penetration Pricing?
Different Types of Market Penetration Strategies
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Insights
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