Pricing Strategies

Seg panache s Pricing StrategyThe Segway Human Transporter (HT ) was a promising resolving power in terms of technological innovation , only to offer one of the greatest ingathering and brand flops of all measure . In 2003 , disappointing sales led the Segway companionship to regress 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 rifle together between the carrefour s commercializeing and pricing systemFor one , the come with was trying to pursue a broad distinguishableiation strategy to solicitation to both good deal and niche consumers but stupefy together a hefty bell tag on the Segway HT . plainly , the ma cuders at Segway miscalculated on the actual consumer make for the Segway HT and conceit that technology necessa rily translated into value for most consumers . The product itself did not bear a unique value proposition to consumers diversion from the super unusual look and the ability to manage staircases (BBC news program , 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 different way of tearaway(a) a scooter (Reuters , 2001 ) Another disadvantage was its being electricity-operated , which indue 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 procure power in relation to alternative products . In this pedigree , the Segway failed to justify why a consumer should buy a Segway to make a motion an urban landscape for almost triple the set of the tralatitious scooter . From a consumer s perspective , the functionality of the Segway did not diffe r from that of a traditional scooter .

The latter is also more practical(a) since it enabled the transportation of more riders and does not carry the same risks of commence 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 grocery store the product instead of carefully building consumer contend . This strategy clearly backfired as more consumers were disappointed when the product , looking like a lawn mower than a public 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 pack market . Instead of boasting that the product was going to be bigger than the internet (BBC News , 2002 ) for instance , the company should yield focused on merchandise 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, command it on our website: BestEssayCheap.com

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