growth strategies and product pricing

Growth strategies and Product pricing

Dr. Pavan Soni

Innovation Evangelist and Founder

Inflexion Point Consulting

Innovation.evangelist@gmail.com

www.pavansoni.com

Presentation overview

• Strategic choices

• Segmentation, Targeting, and Positioning

• Entry and imitation barriers

• Pricing choices

The big question

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Do they all make the

same profits?

4

Your pricing is subjected to where to are positioned!

How do these brands differentiate?

Product strategy

Product features

Product-market fit

Pricing and Value

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Segmentation Targeting Positioning

Cost Price Value

Revenue models Pricing strategies Specs

Sources of value, pricing

and costs

Chose where you derive your value from and the cost and pricing

targets

Competitive Positioning:

Why you can’t be

everything?

Source: Porter (1980)

The playing field

2 1

3 4

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ENTRY BARRIER

EXIT BARRIER

HIGH

LOW

HIGH LOW

Property rights (patents, trademarks, etc.)

Being a moving target

Saturating the niche

Economies of scale and scope

Capturing opportunities

Branding

Discovery- The problem or the opportunity

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Pre-purchase Purchase Usage Repurchase

Value for money

Risk reduction

Convenience

Maruti Suzuki value chain

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Discovery: Look at the non-customers

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Soon to be non-customers

Refusing non-customers Unexplored non-customers

Discovery: Designing for the ‘extreme users’

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Denmark based Arla Foods develops milk products for NASA

Movies with sub-titles were meant for hearing impaired

Volvo buses were designed to get wheelchairs inside

Advent of two sided markets

15

Positive externality

Negative externality

Buyers Sellers

Free

Paid

Free

Paid

Free

Free

Paid

Paid

What pricing model suits you the best?

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1. Subscriptions

2. Usage

3. Asset Sale

4. Leasing

5. Licensing

6. Advertising

7. Broker

8. Freemium

9. Affiliate

10. Razor Blade

11. Open Source

12. Surge pricing

13. Predatory

14. Per Module

Key takeaways

• On Growth Strategy • What’s your ‘Big Question’?• Start with the industry analysis (Porter’s Five Forces Model)• Product, Pricing, and Market fit • Clear positioning is the imperative • Erect entry and imitation barriers• Look at the entire value chain • Look at non-customers• Look at extreme users

• On pricing• Become a marketplace • Explore levers of pricing

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