SLP Time Warp - Essay Example

Download file to see previous pages Strategic position After analysis of the market performance of the products, recommendations for price changes amongst the three products seems the most viable course of action to be taken. In this line, since the market reflected little wavering on the X5 product, its price needs to be kept constant until a well cut out market trend is observable. The market performance of the X6 reflects a steady performance and market dominance in its category. In this view, an increasing in its market price will be a wise step in maximizing its profits. The market performance of the X7, on the other hand, is not as impressive. In a bid to compete favorably with other market brands, it is in order to price it more competitively. In this regard, I would recommend a price reduction as the most workable strategy (Beverland, Napoli, & Farrelly, 2010). A detailed explanation of the decisions is only able to be explained via an in-depth analysis, at the individual level, of the three new products offered by the company, the X5, the X6, and the X7. Product X5 The X5 has had three years run in the market and so far exhibits the lowest cost in pricing amongst the three products offered by the business. This reflects a case of plasticity on the side of the product. This translates in minimal interests in the products performance and hence the customers interest. This focuses the strategy not on an increment of the current market price but rather on the exposure and rebranding of the product so at to make it more profitable. While the current market price of $ 250 seems a reasonably fair market price, it is uncompetitive, not due to in affordability, but the reason may lie on its branding or on other factors that control consumer choices (Bivainiene, 2010). Product X6 Since its market debut 2 years back, the market performance of the product X6 has been relatively impressive. The case of the product can be described as being flat metal. Its smooth market performance is not attributable to its price but rather on the overall usefulness and performance as judged by the customers. The relative stability in the market has made the products price be quoted as $420, a figure that can be raised, albeit by a minimal margin, in a bid to maximize the profits attainable via the use of the product. The risks involved in having a large increase in price are that some customers may be willing to compromise on quality if only to have a cheaper, more affordable product irrespective of its performance. As such, any price increment needs to be done discreetly and with enough consideration to the customer if its continued good performance is to be sustained (Slotegraaf & Pauwels, 2008). Product X7 Given that the product is relatively new in the market; its market reviews may not be concrete enough from which to draw conclusive findings. The case for this product can thus be described as colored, in contrast to the plastic case of X5, and the metal case associated with X6. The relative immobility of this product in the market is attributable by hesitant customers who opt for better established products of the same caliber. The un-ease that results is not so much a factor of the price but rather based on the anticipated performance of the product in the market in comparison to the other already established products. The initial price, quoted at an approximate $200 serves as an entry price ...Download file to see next pagesRead More