Pricing Strategies

Seg elan s Pricing StrategyThe Segway Human Transporter (HT ) was a promising lead in terms of technological innovation , only to impart one of the greatest ingathering and brand flops of all quantify . In 2003 , disappointing sales led the Segway companionship to take back 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 stay couch together between the crop s commercializeing and pricing systemFor one , the family was trying to pursue a broad distinguishableiation strategy to address to both good deal and niche consumers but personate together a hefty bell tag on the Segway HT . plainly , the ma taxiers at Segway miscalculated on the actual consumer make for the Segway HT and prospect that technology necessarily translat ed into value for most consumers . The harvest-home itself did not bear a unique value proposition to consumers deflexion from the super unusual look and the ability to manage staircases (BBC tidings , 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 assorted way of tearaway(a) a scooter (Reuters , 2001 ) Another disadvantage was its being electricity-operated , which put 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 defile power in relation to alternative products . In this parentage , the Segway failed to justify why a consumer should buy a Segway to voyage an urban landscape for almost triple the value of the traditional scooter . From a consumer s perspective , the functionality of the Segway did not differ from that of a tradi tional scooter .

The latter is also more obstinate since it enabled the transportation of more riders and does not carry the same risks of carry 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 foodstuff 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 humanness 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 it s 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 hoi polloi market . Instead of boasting that the product was going to be bigger than the internet (BBC News , 2002 ) for instance , the company should serve focused on marketing the Segway as a lifestyle 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, ordering it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper