Metabical

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What pricing strategy approaches  would you suggest PrintUp explore?What  are the advantages and disadvantages of each strategy ?What price should you recommend?

What pricing strategy approaches would you suggest Printup explore?What are the advantages and disadvantages of each strategy?

Comparacion con la competencia:
Ventaja: los precios al estar ya fijados sirven como punto de referencia para fijar los precios propios Desventaja: El producto seria similar al de la competencia por parte del consumidor.

Medir el valor propio:
Ventaja: Se crearía un nicho aparte del resto.
Desventaja: por la independecia del nicho, el precio depende del comportamiento del consumidor.

Aprovechar el posicionamiento de Metabical.
Ventaja: buena valoración del producto
Desventaja: ya que el mercado es bastante amplio, los consumidores podrían no pagar por el producto

Compared to the competition:
Advantage: fixed prices serve as a benchmark for pricing of metabical Disadvantage: The product would be similar to the competition for the consumer.

Measure the own value:
Advantage: It would create a niche apart from the rest.
Disadvantage: independence of the niche causes the price depends on the consumer behavior.

Take advantage of metabical positioning
Advantage: good valuation of the product
Disadvantage: The consumers could not pay for the product when the market is too large

What price would you recommend? (Use options grid in answering this question for financial attractiveness refer to question 4 below).

Pricing ->Options Benchmark against market competition Leveraging Product positionMeasuring ValueProposition  Description of optionPricing for a 4 week supply of Metabicalat $75Pricing for a 4 week supply of Metabicalat $125Pricing for a 4 week supply of Metabicalat $150OverallAssessment  Do not recommend

 
y
 
Competitor basedpricing maybackfire
y
 
Metabical doesnot have tocompete at allprice points that aconsumer wants R
ecommend
y
 
Aligns with corporate strategy
y
 
Pricing is just right to compete in unique market segments whilecommunicatingvalue of the product  Do not recommend
y
 
Pricing is toohigh as market researchindicates
y
 
This pricing mayalienate manyconsumers fromconsideringMetabical

 
y
 
Pricing makes Metabical apremium qualityproduct in linewith product effectivenessStrategic fit  y
 
Does not fit wellwith CSPscorporatestrategy
y
 
While Metabicalwill be able togain a large userbase initially theoption does not fit the strategic goalof 70% marginsover the longterm y
 
Being a moreeffective product in the market place, Metabicalloses the edgewithout anyreason. y
 
Fits well withcompany strategy
y
 
Althoughrevenues arelower in the short term, Metabicalwill be able toproject itself as apremium product over the longterm y
 
Given the highstarting price,the product maynot attainrequired market share y
 
Product may not be able tocompeteeffectively giventhe intensecompetition inthe market.FinancialAttractiveness N
ot attractive.
y
 
ROI is negative (-25%)
y
 
Target market size is too lowcompared toother twomethods , hencegenerates loweroverall revenuesover 5 years NPV of $709.5million y
 
Attractive Recommended
y
 
ROI is close to75%, whichsurpasses theexpectedminimum ROI of 5% by a largemargin y
 
Pricing issensible, in linewith market expectations
y
 
NPV of approx.$1.5 billion
 A
ttractive  not recommended
y
 
Although ROI is126%, pricing isunrealistic
y
 
Pricing a newproduct at $150a per week couldbe a non-starterin a highlycompetitivemarketplace.  
Noteworthyrisks
y
 
Product will endup competingagainst productsthat are not even y
 
Product may not be acceptedreadily given thehigher than
y
 
Very high entryprice point 
y
 
Revenueexpectations

 
in the samesegment 
y
 
Brand messagecould beconfusing
y
 
Revenues not attractive
y
 
Assumption isthat the thismarket portion isnot...
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