How to Make Price & Product Strategy?

 

Introduction

👉 How to Introduce a product in the market? 

👉 What your company or product should be known for? 

The first rule is to identify your perfect audience because you cannot sell your product everywhere at different prices. 

Whether you are an Entrepreneur, a Businessman, a Start-up or a Sales-executive, everyone wants to know how to position their company or products in the market. 

To position your products effectively, you should use the product-quality matrix. In product quality matrix, four types of markets are defined in four quadrants. You can position your product in any of these markets depending on the type of product. 

Let's study these quadrants in detail. 

Quadrant #1 Value for Money Market 

In this market, companies sell good quality products at a low price. Such products are value for money. 

For Example

Suzuki's car is considered as value for money because not only it's resale value is good but also runs smoothly. 

Another example is Relaxo; their slippers are long lasting as well as pocket-friendly. 

Quadrant #2 Opportunistic Market 

👉 In this quadrant, prices of the products are high but their quality is low. 

👉 There are no regular or repeat customers and products. Therefore, the vendor's sole intention is to make as much profit as possible like the market at the Railway Station, Highway or at Cinema halls. 

For Example 

Every day new tourists visit the Taj Mahal in Agra. So, shopkeepers’ or vendors’ priority is to make a maximum profit not to provide high-quality products or services. 

An opportunistic market can only survive tn limited space, hence you should carefuily position your product 

Quadrant 3 Chine e Good Market 

👉 In this quadrant, both price and quality of products are low 

👉 Here, buyers are usually price sensitive, therefore, sellers dump their cheap products tn such @ market for a better return 

👉 You must have seen Chinese toys, their shelf life is very short a8 the product is of low quality but the price is very competitive 

👉 Here, the financial value becomes your proposition, for instance, Chinese lights on Diwali, Road side toy seller, etc. 

Quadrant #4 Premium Market 

👉In this quadrant, both price and quality of product are high 

👉Branding and positioning of the product are done in such a manner that high quality products can be sold at e very high price. 

For Example

Brands like Versace, Louis Vuitton, Gucci, etc are selling purse, bags, clothing line, and accessories at a premium price. 

A good quality bag which can be bought at 2 7000, they are selling similar products at over @ 70,000 - 80,000 They have positioned their products in such a manner that they sell selected product at a premium price They have a limited market but huge margins 

Similarly, the actual price of Apple's phone may be & 30,000 but they sell it for over @ 70,000 and get huge margins Apple has Created a high aspirational value for their Product so much that even a common man is willing to buy it on loan 

Generally, brands stick to one of the four quadrants but there are some organizations who position their different products in different quadrants

For example 

Relaxo's brand, Flite comes under value for money quadrant but its Sparx brand is positioned under premium quadrant 

Similarty, Maruti Suzuki has positioned Its Nexa in the premium segment For this, the  company had opened separate Nexa showroom because they were not able to sell their products at premium prices. 

| Know | 

If you will try to move into a different quadrant with the existing brand or without creating and positioning the new brand, the market will drag you to the lower quadrant again. 

Therefore, if you want to reposition yourself then you have to create a different brand, as done by Relaxo.