Product and Pricing Strategy
Submit a 1500 words paper on the topic Product and Pricing Strategy. JF’s Electronics can employ versioning tactic for various components of the product strategy – its features, attributes, service, and service features. Using the A La Carte tactic for JF’s Electronics product – customized cell phone – customers can be offered a number of add-on software capabilities in their cell phones, choice is theirs’. It could be an ideal pricing strategy, most probably fit only for customized cell phones (Pricing for Profit, 2010).
Another versioning tactic is offering as much as customers desire, like in an airlines company, they offer a range of classes like business, economy etc. For a customized cell phone company, it holds true as customizing is selecting as much as you want from a range of software features and capabilities. Higher pricing for in-demand features and less for ordinary capabilities! Sometimes low pricing tactic can also be used to attract customers. Again, it depends on whether the company is interested in volume sales or more profits. In the matter of JF’s Electronics, the ideal approach should be not earning huge profits but stabilizing the market with volume sales by offering discounts, so that the market for its customized cell phones expands fast in a foreign country (Pricing for Profit, 2010).
Another crucial component of a product is the capability of changing the product’s attributes to create appeal and demand of the product by new customers. The good thing about JF’s Electronics’ customized cell phones is that their attributes can help in attracting new customers. Customers can choose from a range of mobile phone’s hardware and software features and capabilities as per their needs and likings. Thus, as many features can be added or subtracted according to customer preferences (Pricing for Profit, 2010).
Another component of product strategy is its service and service features. Servicing and repairing of cell phones is a promotional feature. Customers .want quick service, as cell phones are very important part of a person’s mobile accessories. Customer base can be strengthened and enlarged by providing on the spot service and repairing, if possible.