#PenetrationPricing tactics
Companies use different pricing strategies to sell their products. These strategies can vary from setting premium prices, which means setting very high prices to position your brand as a luxury one, or they can also start by setting high prices and then decrease them, this is called #PriceSkimming.
In this post I am going to focus on the strategy called #PenetrationPricing and I am going to relate it to a really current news: The new European Super League. 🏆
In the last few days there have been reports that the creation of the new European Super League will bring free football, with no need to pay to watch matches. It is also being mentioned that the platform where the matches will be broadcasted will have a #freemium model, which means that the consumer will be able to pay to have advantages when watching the matches. These advantages could be not having ads or having access to more match content such as interviews, .....
In my opinion it is quite clear that this is a strategy to compete with the current Champions League, for which you have to pay quite a lot to watch their games. The new European Super League wants to eliminate its competitor as much as possible, drive it out of the market to finish with it. Its strategy is quite clear ''We give the matches for free, they don't, come with us''.
This model has its pros and cons. As for the cons, at the moment when they will have to start charging for watching matches of your competition the brand image could get damaged as prices are not low forever. As for the pros it will have a high product adoption and diffusion.
In the future it will be seen whether they have succeeded with this model or not. For the moment it has to convince teams to participate in its competition, but for now it is winning over some of the football fans. ⚽
👉 Marca article: https://lnkd.in/e7z83GY4
Strategy Director at Rocketer 🚀
1moGwarn lad