Pricing Strategies

Seg appearance s Pricing StrategyThe Segway Human Transporter (HT ) was a promising turn up in terms of technological innovation , only to withstand one of the greatest ingathering and brand flops of all fix . In 2003 , disappointing sales led the Segway companionship to recall a measly 6 ,000 units sold after it was released in 2002 (Kawamoto , 2003 ) Clearly , Segway s failure was brought about by the lack of uprise together between the overlap s commercializeing and pricing systemFor one , the confederation was trying to pursue a broad distinguishableiation strategy to approach to both good deal and niche consumers but portray together a hefty bell tag on the Segway HT . plainly , the ma stopperers at Segway miscalculated on the actual consumer make for the Segway HT and supposition that technology necess arily translated into value for most consumers . The carrefour itself did not bear a unique value proposition to consumers out from the super unusual look and the ability to manage staircases (BBC intelligence , 2002 ) On the contrary , it had numerous downsides which potentially diminished the product s pizzazz . One was that the consumer had to learn an entirely various way of tearaway(a) a scooter (Reuters , 2001 ) Another disadvantage was its being electricity-operated , which instal the consumer at the risk of being stranded when the Segway was low on powerAnother reason for the Segway s failure was that it failed to take into account its potential consumers debauch power in relation to alternative products . In this stock , the Segway failed to justify why a consumer should buy a Segway to fit an urban landscape for almost triple the set of the handed-down scooter . From a consumer s perspective , the functionality of the Segway did not differ from that of a traditional scooter .

The latter is also more virtual(a) since it enabled the transportation of more riders and does not carry the same risks of contract stranded due to low battery charge or getting waylaid by a bigger vehicle on the road . Lastly , the company relied more on media nag to mart the product instead of carefully building consumer entreat . This strategy clearly backfired as more consumers were disappointed when the product , looking like a lawn mower than a world transporter (BBC News , 2002 ) was unveiledMeanwhile , Segway would be in an entirely different scenario if it did not attempt to put a hefty price tag on the product and if it based its merchandise on the real attributes of the product as compared to existing alternatives in the market (Foster , Golder Tellis , 2004 ,. 182 ) For instance , the Segway could be priced at 1 ,000 to 1 ,500 in to be competitive with traditional scooters and to be accessible to the push-down list market . Instead of boasting that the product was going to be bigger than the internet (BBC News , 2002 ) for instance , the company should support focused on trade the Segway as a life style choice . This way Segway would have been able to differentiate itself as a product Likewise , a major marketing blunder committed...If you want to get a full essay, ordination it on our website: BestEssayCheap.com

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