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
Competitor basedpricing maybackfire
Metabical doesnot have tocompete at allprice points that aconsumer wants R
Aligns with corporate strategy
Pricing is just right to compete in unique market segments whilecommunicatingvalue of the product Do not recommend
Pricing is toohigh as market researchindicates
This pricing mayalienate manyconsumers fromconsideringMetabical
Pricing makes Metabical apremium qualityproduct in linewith product effectivenessStrategic fit y
Does not fit wellwith CSPscorporatestrategy
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
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
ROI is negative (-25%)
Target market size is too lowcompared toother twomethods , hencegenerates loweroverall revenuesover 5 years NPV of $709.5million y
ROI is close to75%, whichsurpasses theexpectedminimum ROI of 5% by a largemargin y
Pricing issensible, in linewith market expectations
NPV of approx.$1.5 billion
ttractive not recommended
Although ROI is126%, pricing isunrealistic
Pricing a newproduct at $150a per week couldbe a non-starterin a highlycompetitivemarketplace.
Product will endup competingagainst productsthat are not even y
Product may not be acceptedreadily given thehigher than
Very high entryprice point
in the samesegment
Brand messagecould beconfusing
Revenues not attractive
Assumption isthat the thismarket portion isnot...
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