MKT/421
Marketing Phase 3
The product chosen is Leapfrog Genius with the intention being to facilitate children with learning disabilities and make learning both easier and fun for them. As an organization with a successful brand line and operational credibility in building a brand image with respect to educational claims of its product it is of prime importance to foray in the category with care to be able to maximize both consumers interests and eventual profitability from the newly launched LeapFrog Genius for disabled children.
Since it has been discussed in phase 2 that the product will be user friendly for both parents and the children with the aim of facilitating the growth process, affordability for LeapFrog Genius is a primary concern to give a head start in the eyes of the consumers to give it a try.
The pricing strategy is one of the most significant aspects in terms of it being a focal factor in view of the price having a major impact on the bottom line revenue and profits and keeping in view the strategic perspective of the product/service target market which will make the product/ service and eventual success or failure. A marketing strategy entails product, place, price and promotion and thus price being one of the core elements has to be in tune with the other factors to be able to make a product/service price create a demand in the eyes of the consumers.
For LeapFrog Genius the main thing is take to take into account what LeapFrog as an organization thinks the variable and fixed costs will be over time and also what is the intent in setting the price for the newly launched product.
Growth maximization will be the key in terms of both profits and market share with regards to setting price since being a stable organization with an array of products, it is important to create a niche in the newly launched category for disabled children and then lead the way starting with setting reasonable price for LeapFrog Genius.
Thus as per the above mentioned the price strategy will be in essence based on either skimming or penetration when it comes to a newly launched product or service. Skimming is based on setting a high price to attract the movers and shakers and set a standard thus focusing on a niche while penetration focuses on setting a price to be able to increase the market share of the product and then with the gradual acceptance and success of the product increase the price (Leigh, Richards, 2014).
Though Leapfrog product prices for tablets, reading apps etc as given on the website are affordable yet competitive and thus keeping in lieu with the historical trend as it also important to guard the organizational perspective, penetration pricing will be adopted at the launch to create a demand and acceptance and then increase the pricing gradually (Leapfrog Enterprises, Inc. 2001-2013).
Once the objective of creating buzz for educational toys for disabled children is created through different forums i.e. special schools, retailers and other avenues the company will in lieu with feedback from parents and retailers will develop newer products with premium pricing taking advantage of first mover in the market for educational toys for disabled children.
References
LeapFrog Enterprises, Inc. (2001-2013). Products LeapFrog. Retrieved from company website: http://www.leapfrog.com/en/landingpages/leapfrog-products.html
Leigh, R. (2014). Different Types of Pricing Strategy by Demand Media
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