growth strategies and product pricing
TRANSCRIPT
Growth strategies and Product pricing
Dr. Pavan Soni
Innovation Evangelist and Founder
Inflexion Point Consulting
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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