Segway Pricing Strategies Essay Example

availability and unique edge to capture large market interest, still such an extensive amount was charged, that was considered “$2000 and 40 pounds too hefty” for its value for the customer. (Harmon, 2001) For the corporate buyers, it went up to $8000, but generally the price of $3000 was fixed for all the public. Soon enough it reached up to $4950.These factors restrict Segway to affluent categories only, incapacitating many potential customers from very important segments.

Pricing objective Considering its high price we assume that they were opting for profit maximization. To meet the objective Segways went for a skim pricing strategy. Skim pricing strategy is appropriate to be implemented in condition when the customers are not sensitive to high price. Though it’s obvious that Segway was targeting a wealthy segment, however the nature of Segway is such that was quite rapidly attracting mass appeal, and needed a different way to be catered.Fair pricing and customer value of product To determine price one should know their target and potential customer.

At times, whatever be the value of product, and even if there’s no competition, still there’s a range of price that consumer considers as “fair”. if your cost comes up to $100, whether your product delivers the customer with $10000 worth of value and benefits, it won’t be an easy task to charge your product worth rocketing prices, even $ 3000 or 4000 will be difficult. Because the customer thinks they’re being extorted.And same was observed for Segway soon after its breakthrough. Image of product and customer’s perception Though the concept of Segway Human Transporter was quite appealing, but there was a criticism over the

look of product.

Segway presented a picture of somewhat comical scooter or a super-nerd gadget, something to play with. Even Sheila Lynch executive director of the Northeast Advanced Vehicle Consortium pointed out the threatening issue of social reluctance to the use of Segway by pedestrians. (Harmon, 2002)Later until 2008, the customer beliefs regarding product were unstable, as government agencies were still taking long to test the reliability of product (Kawamoto, 2003) and general public had encountered a number of unexpected accidents. The image of Segway distorted into a symbol of lethargic and indolent people.

This was all due to an ineffective marketing campaign and strategy. Appropriate Sstrategies Marketing plan should be determined by making sure your target customer is your potential customer, and then give them a better understanding of your product.It was revealed by a customer of Segway that the highest proportion of non-commercial consumers of Segway are physically challenged people for whom this is a great invention. This is just an example- here we have got a whole segment of potential customers who can be targeted particularly to make great profits. Segway should not be equally publicized for every one but it should be varied into different models for different segments. Also pricing should have been set according to that positioning of product.

This could have account for more success and profits by opting for a contrastive strategy of starting with a relatively lower price, so most of the people can afford it. Conclusion If segmentation had been developed and a better positioning given to the Segway it could have made a clear picture in buyer’s mind right from the start. This accounts for

an effective marketing strategy. However mistakes done, Segway turned on a new leaf by the passing of years and rectified its mistakes by modifying its product, catering new markets and making Segway affordable for their customers.

(Jackson, 2007)