Solar Charge Price Strategy

Solar Charge Price Strategy

Price strategy is an essential element for any business undergoing the task of introducing a new product or service to the market. To clearly identify the gap in the market, the business has to strike a balance between pricing the product too low, and not earning any revenue. Contrariwise, if the company prices goods and services too high nobody will purchase them. The key is to research all available strategies and select the best one for the specific circumstance (Lowe, 2010). With proper research, the business can identify the appropriate price strategy to achieve the outmost profit potential for each of their products or services.

SONY's choice and vision for the most proficient pricing strategy for their product "Solar Charge" is the penetration pricing strategy. The penetration pricing strategy is chosen to be used as a "loyalty building market entry tool". This type of strategy is intended for the high-quality product priced at the much lower than expected price. The penetration strategy helps the business enter the new market even when strong competitors may exist, and it builds on the loyalty with new customers off the start (Perreault, 2011). The penetration strategy can drastically engage the lifelong type of customers, because the outstanding first product, and assuming future products are just as fine quality, they are more willing in purchasing the businesses products in the future.

References

Lowe, B., & Alpert, F. (2010). Pricing strategy and the formation and evolution of reference price perceptions in new product categories. Psychology & Marketing, 27(9), 846-873.

Perreault, W. D. Jr., Cannon, J. P., & McCarthy, E. J. (2011). Basic marketing: A marketing strategy planning approach (18th ed.). New York, NY: McGraw-Hill Irwin. Marketing Plan Outline.