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Penetration pricing strategy

Infiniti’s Penetration Pricing Strategy Helped a Consumer Electronics Company Achieve 22% Increase in Market Share

Penetration Pricing Strategy for a Consumer Electronics Company

With a large number of consumer electronics products being introduced every year, companies in the consumer electronics market are facing difficulties to increase market share and sales volume for their products. Also, as pricing largely impacts customers’ buying behaviour, it becomes vital for consumer electronics companies to competitively price their products. However, for companies that are new to the market, it is even vital to introduce some introductory offers to set up their customer base in a particular market. This is where penetration pricing comes in. Penetration pricing strategy helps businesses gain sales traction. This also helps businesses to increase market share.

Penetration pricing strategy helps businesses to lure customers away from established competitors. Request a FREE proposal to know how our product pricing strategies can help your business to achieve maximum market share within a short span of time.

Business Challenge

The client is a consumer electronics company in Europe. The client was new to the European market. As the European consumer electronics market was highly saturated, the client was facing difficulties in competitively pricing their products. The client even faced difficulties to lure customers’ attraction, build brand loyalty, and generate demand for their products.Therefore, they approached Infiniti Research to leverage their expertise in formulating a penetration pricing strategy. With Infiniti’s price penetration strategy, they also wanted to analyze the pricing strategies adopted by competitors and devise an appropriate penetration pricing strategy to gain market share and attract customers.

By leveraging Infiniti’s penetration pricing strategy, the client wanted to achieve the following:

  • As pricing plays a major role in customers’ buying behavior, the client wanted to leverage penetration pricing strategy to build customer base quickly by selling products at a lower price. By building a better customer base, the client wanted to enhance their sales rate.
  • As the client was new to the European consumer electronics market, they were facing challenges in capturing market share. With Infiniti’s penetration pricing strategy, the client was looking to provide introductory discounts to customers and capture maximum market share.
  • With Infiniti’s penetration pricing strategy, they also wanted to eliminate the market competition by offering products at a lower value compared to their competitors.
  • With Infiniti’s penetration pricing strategy, the client also wanted to create a mass market for their products and establish themselves as market leaders.
  • With Infiniti’s penetration pricing strategy, they further wanted to measure customers’ sensitivity to price changes and identify the price gap with their competitors.

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Solutions Offered and Value Obtained

The experts at Infiniti Research followed a four-phased approach to formulate an efficient penetration pricing strategy for the client.

Conducted a thorough market pricing analysis – The experts at Infiniti Research also analyzed the European consumer electronics market players and their pricing strategies. The factors such as competitors’ product offerings, pricing strategies, market position, strengths, and weaknesses were considered during the analysis.

Analyzed the target audiences – The experts analyzed the needs and demands of the client’s target customers. The experts also analyzed customers’ buying behavior, customers sensitivity to price changes in the market. They also analyzed how consumers’ reacted to new product launches in the market.

Analyzed competitive landscape – The experts analyzed the top five competitors of the client. They further analyzed the structure of their pricing, discounts, and their market share.

Created a pricing strategy and execution plan – Based on the insights obtained, the experts at Infiniti Research formulated a pricing strategy for the client. The formulated pricing strategy plan acted as a blueprint that helped the client to efficiently price their products to gain maximum market share.

Results Obtained

With Infiniti’s penetration pricing strategy, the client was able to create a mass market for their products in Europe. They were also able to build a better customer base and achieve a high market share. By offering products at a lower price compared with their competitors, the client was able to surpass the competition. Infiniti’s penetration pricing strategy helped the client to enhance brand loyalty. Furthermore, it helped them to sucessfully establish their market presence in the European consumer electronics market.

Also, by leveraging Infiniti’s penetration pricing strategy, the client was able to:

  • Grow their market share by 22% in the course of one year
  • Capture customer traction by offering products at lower prices
  • Build customer and brand loyalty

For a new venture, figuring out how to price your products or services is highly challenging. Infiniti’s penetration pricing strategy can help you efficiently tackle this challenge. Request for more information to gain more insights into our services and learn how our penetration pricing strategy can help you achieve high market penetration rates quickly.

What is penetration pricing strategy?

Penetration pricing strategy is a business process in which the prices of products are initially kept low to reach a wide fraction of the market. This also helps businesses attract customers towards their brands and also outpace the market competition. Furthermore, penetration pricing strategy stimulates market growth and helps companies capture maximum market share for their products or services.

Advantages of penetration pricing strategy

  • Helps businesses to capture maximum market share in a short time
  • Enhances brand loyalty and also brand awareness
  • Helps companies gain a leading edge in the new or existing market compared with competitors
  • Helps achieve higher market penetration rates quickly
  • Encourages word of mouth marketing and also enhances customer experience

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Product pricing strategies

Pricing a New Product: The Right Product Pricing Strategies to Follow

Charging a lesser price for a new product may not always be a good decision.

One of the key questions to answer while launching a new product is- how much should the product be priced at? But the dilemma that most companies face here is that if they charge too much for a new product it won’t sell, and if the product is priced too low the product’s market value proposition becomes low. Moreover, once companies decide on their initial product pricing strategies and a price is set for a product, it becomes extremely difficult to raise prices.

Today, businesses and consumers alike are demanding more for less, making it even more difficult for brands to formulate product pricing strategies that are favorable to all the parties involved. Global competition, increased pricing transparency, and lesser market entry barriers across industries are forcing brands to rethink their new product pricing strategies. Before zeroing in on their product pricing strategies, companies must have a clear estimate of the highest and the lowest price that they could charge for a product. Then a detailed price-benefit analysis must be undertaken during the preliminary stages in the product development cycle. This not only shows companies whether price barriers might make products unfeasible but can also guide their development by indicating the product attributes for which customers may be most willing to pay for.

Planning a new product launch? Request a free proposal to know how our experts can help you build successful product pricing strategies with effective market insights that you may have overlooked.

Product pricing strategies for a new product

Product pricing strategiesSome of the key product pricing strategies that can be used for a new product include:

Segmentation pricing

Pricing a new product could often prove to be a challenging task. An important tactic that can be followed by companies is to set different prices for different market segments. In order to enhance profits, markets can be split into sectors based on differences in price sensitivity. Higher prices can be charged to those who are impervious and lower prices to the more price sensitive customers.

Penetration pricing

Companies often get tempted to build market share, especially with the launch of every new product, through aggressively low prices. This competitive product pricing strategy is known as penetration pricing. However, a fixation on volume could reduce profitability and consequently ignite a price war. As a result, it is generally advisable to keep upward pressure on prices and promote good industry pricing behavior. On rare occasions, however, the price lever may be an effective tool to undermine competition.

Not sure about the right product pricing strategy for your new product? Request a free brochure to learn more about our solutions and how they can help enhance your new product pricing strategy.

Cost compression curve pricing

Cost forecasting for pricing new products is based on the cost compression curve, which relates the actual manufacturing cost per unit of value added to the cumulative quantity that is produced. This cost function is mainly the consequence of cost-cutting investments to discover and achieve internal substitutions, automation, worker learning, scale economies, and technological advances. Usually, these move together as a logarithmic function of accumulated output. Such product pricing strategies are highly effective when the product superiority over rivals is minimal and when entry and expansion by competitors is easy and probable.

Learn more about Infiniti’s new product pricing strategies

What is Product Research and How is it Done?

What is product research?

Although technology plays a major role in bringing innovative products to the markets most of these products fail to achieve meaningful customer adoption. This is usually the result of developing products that do not serve much value to the customers. This challenges can be eliminated using product research. A product research process involves identifying market opportunities and gaining meaningful customer insights that will help businesses in better decision-making. Product research is one of the most vital steps in a product development process. Here, the product idea is carefully examined and compared to similar offerings in the market to understand the selling potential of the proposed new product. Efficient product research tools also help identify key issues in a proposed product and thereby avoid costly mistakes.

We at Infiniti provide tailor-made solutions to suit your needs. Request free brochure to know more!

Product research vs product development

Product development is a broader concept that involves the entire process of researching, designing, creating, marketing, and selling new products. It encompasses the entire product lifecycle starting from conception to the sale. This stage is not exclusive to designing, implementing, and selling new products, rather it can also include revamping of existing product features that could add greater value to the customers. Product research, on the other hand, is one of the first steps in developing a new product. This is concerned with the company’s R&D team testing the viability and feasibility of a particular product for a given market. Research and development for new or existing products are vital for the company’s long-term success and sustained growth.

Why is product research important?

Product research experts at Infiniti Research have listed out some of the key reasons why companies must take product research process seriously and their crucial role in the success of their product-to-market strategy:

Better understanding of customers

Who are the company’s target customers? What are their buyer personas? How often will the customers buy a particular product? An effective product research provides answers to such questions. Furthermore, this will help businesses meet customer needs and demands better than the competitors. The complete customer profile can be mapped using product market research, making it easier to determine the market size and identifying what triggers customer purchase. Furthermore, demographic (age, location, income, and gender) insights relating to the target customer can also be gained.

Get your product research on point using Infiniti’s product research solutions for business. Request a proposal to get more insights!

 

Gain insights on competitors

Businesses that want to stay in the game must be well aware of who they are competing against in the market and what their key strategies are. Using market research market competition can be easily identified and companies can also gain a better understanding on the customer perception of their product compared to that of the competitors. It also provides a clear SWOT of the company and how they can improve their products.

Product testing

Even though a product might be in its last stage of development, there might still be loopholes in its functionality that can be improvised to enhance user experience. It is difficult to stay confident that a product will instantaneously connect with the audience. Product market research will clearly define what marketing approach needs to be taken in marketing the product in such a way that it resonates with the audience.

Business growth

It is too optimistic to expect that a business is always going to run smoothly and free of challenges. There are chances of a sudden spike in competition or a dip in sales. The use of market research enables companies to capitalize on market opportunities and develop innovative products or a better pricing plan. It will also facilitate in discovering new market segments and distributions channels.

Conclusion

Three main components must be addressed by companies while undertaking their product research: the consumer, the market, and key competitors. Overlooking any of these could result in serious drawbacks in the company’s product research report. The ultimate goal of a product strategy is to better understand the product and potential changes it might take in the future. This could play a major role in revolutionizing an old product entering a maturity stage or developing a new and innovative product.

Market research supports the creation of a definitive product strategy which exceeds business targets. Infiniti Research’s product research solutions can help you attain that. With accurate data and analysis, we help develop your product strategy by identifying key markets for entry, surveying consumers, competitive analysis, and identifying underlying consumer trends.

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Finding the Right Mix for a Product Marketing Strategy

What is a product marketing strategy?

Launching a new product into the market can prove to be a big fiasco in the absence of an appropriate product marketing strategy. It involves a series of efforts that are undertaken to get the products into consumers’ hands. The product marketing plan generally begins with a concept or idea and then moves into different stages of development including pricing, testing, and creating a sales plan. Every department in an organization must be a part of developing the product marketing strategy as each team is capable of providing inputs/suggestion that may be overlooked by the other.

Why is product marketing important?

Today’s dynamic market demands modern organizations to have a team that is dedicated to solely keeping a close watch and understanding the market and buyer needs. This knowledge can then be leveraged by companies to execute strong sales and marketing strategies. Product marketing strategy helps to understand the needs and behavior of buyers in a particular market in relation to the company’s offerings. On a more tactical level, a product marketing plan is tasked to work with internal teams to ensure readiness and thereby conduct successful product launches.

Key elements of a product marketing strategy

A successful product marketing strategy involves six key elements, this includes –

Product

Developing a strong product is one of the most vital and first steps involved in building a product marketing strategy. It is essential for organizations to ensure that the target customers are kept in mind while developing a product and it aligns with their needs. Customers expect to meet some need or solve a problem when they purchase a particular product. Understand what these needs/problems are and identify if the company’s product has the ability to meet their needs. Down the road, finding answers to these will also help determine the right communication strategy for promotion activities. Each product feature should be aimed at solving a common business challenge.

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Developing a product marketing strategy could be challenging. With years of expertise, we at Infiniti Research have mastered the art of helping our clients with tailored solutions to suit their market needs. Request a free brochure to know more about our services!

Audience

Products are developed based on customer preferences and needs. Similarly, while developing a product marketing strategy, the organization must make efforts to understand their audience better. Information must be gathered about the audience including- age, gender, education, and marital status.  This can be done through direct interviews with the customers or by setting up a phone call to learn more about them. This helps companies to form a narrative and create buyer personas. Companies can use this data to market to one buyer persona at a time rather than sending out common messages to the mass audience.

Communication

One of the most essential steps in a product marketing strategy is to communicate with the audience. Customer intelligence experts from Infiniti Research suggests that a good majority of customers feel emotionally connected to a brand when they stay connected to the brand in the form of messaging. An important point to bear in mind here is that the product messaging should be in the form of a narrative as they are relatable and resonate with the audience. The product’s unique selling proposition and the value offered to the users can be used as a key tool to craft an effective story.

Team work

Product marketing strategy cannot be formulated single-handedly formulated by a single person or team in the company. It requires collective efforts of the entire organization. However, bringing multiple teams on the same page is a challenging task. Teams across the organization should be educated and informed about their role in the product marketing strategy. Having a product roadmap can prove to be highly beneficial here. This helps to align all the teams and internal stakeholders in the company by providing them a summary of the product marketing strategy and guiding them in each step of the process.

Promotion

Selling a new product isn’t easy. Strategic promotion is the right way to get customers to buy a new product. The company’s promotion plan must be aimed at getting the message out to the right audience at the right time. Furthermore, it is also critical to choose the right channels of communication. Analyze and identify the platforms on which the company’s target audience spend the maximum time. The product marketing strategy should ensure that the products are promoted through channels that make the most sense for the brand and audience.

Choosing the right product marketing strategy is a highly critical task. Are you equipped to meet the challenges coming your way? If you are not sure, request a proposal to know how Infiniti’s solution can help your business to be prepared!

 

Track results

The last step in the product marketing process and one of the most critical aspects of a product marketing strategy is to analyze and track the results. Once the product marketing strategy is implemented and the product has hit the retail shelves, the next step is to understand how successful the product is in the market. The metrics to track here include website form submissions, email clicks, reach, and conversions. The gaps in meeting customer demands can be identified in this stage and necessary changes can be made by the brand in the nick of time.

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Everything you Need to Know Before Developing a Product Segmentation Strategy

 What is product segmentation? 

A product segmentation strategy helps businesses identify ways to sell variations of their products in such a manner that it appeals to different markets. How is this different from a marketing segmentation? Marketing segmentation involves identifying various target markets for creating different messages for selling the same product to each group. The primary aim of a product segmentation strategy becomes evident when you realize that by slightly changing your product, the potential to increase sales becomes higher.

How to undertake a product segmentation strategy

Analyze the market

An ideal product marketing strategy must include methods to identify factors that make people want to purchase a particular product. For instance, brands can take the help of focus groups or surveys to find out what people like about their product and the scope of improvement that would make it much more desirable and eventually prompt them to purchase. The needs of each target groups of customers might be different. It is essential for businesses to identify the ones which are viable and incorporate the same into their offerings.Get More Info

Use marketing segments

Brands can use various types of product segmentation to appeal to customers, one of the best ways to do it is to focus on the already existing customer segments of the business. This also helps to identify market segments that aren’t buying from the business and formulate different product variations that could induce a purchase from them.  If the company sells products via the Internet, then it becomes much easier for them to offer customization options of products to the customers in order to meet the needs of different groups better.

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Use distinctive marketing communication

Brands must ensure that they adjust their marketing messages accordingly to suit the product that they intend to promote. For instance, the marketing strategies used for selling a children’s snack should be different from the strategies used to promote snacks that are healthy and recommended for adults.             

Types of product segmentation strategy 

product segmentationMass market strategy

This is one of the easiest types of product segmentation wherein a common offering is made throughout by the brand irrespective of their target customers or difference in geographic locations. One of the key advantages of this product segmentation strategy is that the company receives a great economy of scale advantages since its factories are manufacturing the same product with the same materials and no additional customizations are required.

Large segment

Large segment product segmentation strategies are more specific and require a significant investment to compete successfully in every available market at the same time. A company can specialize in making one type of product which allows them to eliminate an unprofitable segment or target the segment where it has the greatest advantage.

Multi-segment

In this product segmentation strategy, a company targets more than one market segment. For instance, A chemical brand can make many brands of detergent just by changing the concentration of the chemicals used for each specific market. The company runs a separate advertising campaign for each product, and customers in a different region may not even know that these products are made by the company. This method is intentionally used by some companies to protect the reputation of their higher-end brands.

Niche strategy

Niche segmentation is one of the popular types of product segmentation wherein the company’s products are made to suit the needs of a specific and highly specialized target customer group. This is one of the most effective types of product segmentation that can be used by a smaller firm to compete with larger counterparts in the market. Though a niche forms only a small part of the market, higher-end products are sold to this segment which compensates for this factor.


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Popular pricing strategies that e commerce companies swear by

Choosing the right pricing strategy is one of the most crucial decisions that you have to make. Get it wrong, and it could cost big for your business. Online and offline retailers alike recognize pricing strategy as one of the key value levers, and, accordingly, companies have worked to refine their pricing strategy, tactics, and tools over the past several decades in hopes of optimizing their approach. Today, with the rising use of the internet and smartphones, customers can compare prices with just a click of a button. So, the pricing strategy that companies in the e commerce industry choose must be one that not only gives them a good ROI but also gives a sense of ‘value for money’ to the customers. There are endless ways for companies in the ecommerce industry to configure Get More Infoand set their pricing strategy. Here is our pick of the top five ways to get online pricing strategy right:

Loss leader pricing

This is a crucial pricing strategy for companies in the ecommerce industry to convert their customers into loyal customers and ensure repeat sales. This strategy is generally practiced by retail giants such as Amazon and Walmart. The main idea behind this pricing strategy is to price certain products at a price that is significantly lower than that of the competitors in the e commerce industry. This is similar to the predatory pricing strategy that is mostly followed by offline retailers. This technique not only drives traffic into the store but also help in converting window shoppers into paying customers.

Basket-based pricing

Basket-based pricing is a common pricing strategy that is used by players in the e commerce industry to entice customers to make a purchase. In this technique, certain price points or products are used to incentivize customers to purchase products. For instance, it is often seen that online retailers offer free delivery if your total basket value exceeds a particular limit. This sometimes makes customers purchase more than they would have initially intended so that they can avail of the benefits.

Quick-delivery pricing

Amazon is a prominent example of an e commerce industry player who has been leveraging this pricing strategy effectively. The company leverages its state of the art logistics network to not only serve its customers at the shortest possible time but also to use it as a profit-making pricing strategy. They give customers options such as same day delivery, next day or 2-day shipping, in return for an additional premium from the customers. This is a great way for the company to keep its prices lower than the competitors but at the same time drive profitability for the business.cta ir

Real-time price optimization

With the advent of advanced technology, it is now possible for companies in the e commerce space to gain real-time insights on determining whether the rate at which the products are priced is the ideal way of ensuring profitability or not. It is not advisable to always price the products lower than that of the competitors. Instead, players in the e commerce industry can use retail analytics to identify and adjust the prices based on factors such as demand and out-of-stock situations.  Out-of-stock situations are opportune moments for setting prices at a higher rate as customers looking for these products on competing sites will surely navigate to you.


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Powerful Tips to Succeed in Mass Customization

A modern-day customer wants to feel special not only in the way companies treat them but also on how companies create something just for them. However, the caveat of high-price cannot be ignored. So how can companies do the impossible, making product customization possible without shooting up the final price? It is in this context that the concept of mass customization gains traction among consumers as it helps in making the customer feel like what they are getting is completely different from others and best-suited to their needs. The key to success is to know what customers want in the first place. Customer preferences can be identified by collecting a large amount of customer data on purchase history, browsing history, transactions, and numerous other data sets. As a result, companies can take a giant leap in product personalization into mass customization. So how can companies ensure success in their quest for mass customization?IR_Brochure

Learn from Data

Data is quintessential to know what the customers want. The ability of data analytics is not limited to identifying customer experiences; they can also accurately predict what customers want even before they know it. Mass customization gives companies a unique opportunity to determine customer preferences and make smart choices about supply chain and product options. By gathering data from personal and social channels, companies can create delightful experiences for customers; thereby, increasing brand loyalty and driving profits.

Using Customer Driven Design Interfaces

The advent of big data, cloud technologies, and 3D printing have opened up a host of opportunities and possibilities for manufacturers to perform effective mass customization. Such technologies put the power in the hands of the consumer to self-design the product. The additive manufacturing concept allows the user to add and customize their design over the base model to create their personalized final product. For instance, Mi Tubular Shadow shoes from Adidas allow customers to choose a basic shoe style and then choose the stripe color, sole color, lace color, and color of the upper line. With the aid of digital technologies, customers can put their feet in the digital scanner and get a truly customized end product.

Enable Customer Collaboration

Customers getting involved in the product customization process spend a lot of time to create something of immense value to them. When customers like their own creation, they look for a platform to share it with friends, family, and the outer world. If companies enable design sharing, then they can boost their customer engagement and get new customers. Additionally, other customers can collaborate on the same design to create a unique product for the market. For instance, North Face launched a gallery of designs created by the customer for its Denali jacket, serving as an inspiration point for the others.

To know more about mass customization, product customization, custom products, and custom merchandise: Ask an analyst

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Competitive Pricing Analysis Enables a Surgical Instruments Manufacturer to Stop the ‘Pricing Slide’

Over the years, the cost associated with medical devices has reached its saturation, leaving hospitals to look for alternative solutions that are cost-effective. To keep pace with innovations and retain their foothold in the surgical instruments market, organizations have started opting for competitive pricing analysis to understand the pricing of medical devices and further benchmark the prices with that of the competitors. Through a detailed competitive pricing analysis, organizations can identify the list of manufacturers and their product offerings. In the surgical instruments market space, organizations can easily identify the pricing structure of the competitors and accordingly reprice their products to remain competitive in the market. In addition, competitive pricing analysis allows organizations to change their product price periodically and keep the price competitive. Leading firms can leverage the use of accurate competitive pricing analysis to decide the right price for a product at the right time.

Infiniti’s competitive pricing analysis solutions help the client stay updated on the latest technology prevailing in the surgical instruments landscape. The client can maximize the use of the tools for accurate price comparison and analysis of the competitors’ offerings in the market.

The Business ChallengeIR_Brochure

Over the years, the medical landscape has been witnessing unprecedented twists and turns, owing to the increasing number of competitors in the surgical instruments space. Keeping this specific challenge in mind, a leading surgical instruments manufacturer wanted to carry out a robust comparative pricing analysis to understand the pricing strategies of the competitors. The primary objective of the client was to understand the competitive pricing structure to compete more effectively, increase sales, and grow profit margins. The client further wanted to improve negotiations with suppliers to understand optimal margins, prices, and product selection.

The client was also facing challenges understanding the pricing strategies for identical products in the surgical instruments landscape. The client wanted to identify the prevalence of identical products and assess the discounts and deals offered on these products.

Our Approach

To gauge more information on the surgical instruments landscape, the client approached Infiniti’s team of competitive pricing experts. Infiniti’s competitive pricing experts carried out a blended approach comprising of interviews and discussions with leading stakeholders in the surgical instruments space. Also, Infiniti’s pricing analysis experts created a robust database to automatically collect and analyze competitors pricing, assortment, and promotions data. Moreover, the experts also collated information from various proprietary sources such as hospitals to compare and identify competitor pricing.

competitive pricing

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Competitive Pricing Analysis Solution Benefits:

  • Track and compare real-time competitive pricing information
  • Gain actionable insights by analyzing the competition
  • Improve negotiation with suppliers, optimize pricing on a continuous basis
  • Understand current pricing strategy and track price changes
  • Evaluate market behavior and make informed business decisions

Benefits of Our Integrated Approach

In just eight weeks, the client was able to track, compare, and analyze the pricing models for surgical instruments; thereby, determining the best possible selling price for the products. The engagement further assisted the client in comparing the selling price of the same products with that  of the competitors. The engagement further helped the client devise smart pricing strategies to attract more buyers.

A must-read case study for strategy experts and decision makers looking to develop an understanding of the medical devices landscape.
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Global Manufacturing Company Identifies Demand Drivers Through Premium Pricing Study

Infiniti’s latest premium pricing study provides insights on measuring the price and value addition of products and services that helped a global manufacturing company to enhance its approach to product pricing.

What is premium pricing?

A competitive market landscape drives businesses to focus on their product pricing strategies. These strategies have a long term effect on the brands’ positioning and consumer perception of its products and services. Price fluctuations have two adverse effects on the brand, it negatively impacts the return on investment (ROI) and hampers the brand’s ability to select the ideal target market. Organizations can benefit from a premium pricing strategy to create product differentiation and unique value proposition. It also helps the business gain a competitive edge and stay ahead of the other players in the market. Premium pricing is commonly referred to as “prestige pricing, ” and it often gives the product or service an aspirational image, improves brand perceptions, and drives return on investment (ROI). Infiniti’s recent study on premium pricing provides actionable insights to clients to help them assess their current pricing strategies and make informed decisions for the future.

Organizations often adopt a premium pricing strategy without assessing its market position, competitive environment, and the customers’ ability and willingness to pay the price. It is a major drawback for the businesses who command a premium price without a thorough market and customer insight, often results in an inappropriate pricing strategy and ultimately leads to brand and product failure.

Leveraging pricing analytics

Pricing analytics tool helps in evaluating past performance and help devise future strategies based on product categories and geographical segmentation. The business intelligence and analytics tools help organizations to set, track and measure attainable goals and objectives, and compare the actual and expected outcome. Pricing strategies can be devised based on the forecasts and insights provided by predictive analytics or a price optimization system.

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Expanding to niche markets

Several pricing strategies allow organizations to enter new market segments by offering products and services at a higher price compared to the other players in the market. A common consumer perception about product pricing is that higher the price, better the quality of the offering. Gradually, it helps businesses create brand awareness, drive revenue opportunities, create product differentiation, and build brand credibility in a highly competitive market.

Solutions and recommendations

The team at Infiniti Research offered various solutions and insights on pricing and value-added assessment of its catalog and helped a leading manufacturing company to formulate better pricing decisions. Some of the solutions offered include:

  • Identify the demands, preferences, and pain points of the current and potential customers
  • Evaluate the key factors that drive demand based on quality, price, service, and brand equity
  • Understand the competitive landscape and define benchmarks regarding quality, market players, and customer support
  • Determining the factors that help promote the value added solutions
  • Analyzing and identifying product portfolio and direct efforts towards various product categories like refueling, dry break, DLA standard products, and TTE

Read our comprehensive case study on how our premium pricing study helps a global manufacturing company.

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