Market Skimming:
Setting a high price for a new product to skim maximum revenue layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.
Implementation:
Coke launched minute maid and its price was higher than other products but still coke was having reasonable sales of the juice.
2 comments:
Ali isn't it too much risky that u r introducing a new product to the market n even then u r setting a very high price even more than ur competitors who r already in the market n have earned good will already?
I think it is.
WE should not set the higher price than ur competitors.Once u enter the market n have customers n get good will then u can charge higher price whatever u need.
N its all depend upon the quality of the product
well waqas i would like to give you example of nestle juices they set high price because there target merket is upper class or upper middle class so, price don't matters for these classes only quality matters.......
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