Give an example of any firm that has implemented pricing strategy during the launch of a new product in the market.
Give an example of any firm that has implemented pricing strategy during the launch of a new product in the market and answer the following related to it:
a. Which type of pricing strategy did the firm use and why?
Nokia used the skimming price strategy when it introduced the 1100 handset in the Indian market priced at Rs.5200. This was done in order to regain its R & D and promotion cost. As the sales gained momentum, the price of the product was lowered down to Rs.3800 in the market.
b. Was it successful in the market or not? Give reasons.
Yes it gained huge success in the market. Apart from the pricing strategy, Nokia’s promotional strategy was also well implemented on account of its widespread advertising using celebrity endorsements which added to its popularity in the market.