Product pricing strategy matrix for oem

Description:

The image displays a PowerPoint slide titled "Product Pricing Strategy Matrix For OEM", which is a tool for Original Equipment Manufacturers to determine pricing strategies based on product quality and promotional intensity. The matrix is divided into two sections by product quality and promotion:

Left Section (Promotion vs. Price):

1. High Skimming Strategy: 

High price and high promotion, aiming to maximize revenue with high margins and intensive advertising.

2. Slow Skimming Strategy: 

High price with low promotion, targeting consumers less responsive to promotion.

3. High Penetration Strategy: 

Low price with high promotion, seeking rapid market share increase.

4. Slow-Penetration Strategy: 

Low price and low promotion, relying on market dynamics to naturally increase sales.

Right Section (Product Quality vs. Price):

1. Premium Strategy: 

High quality with a high price, focusing on the luxury segment.

2. High Value Strategy: 

High quality with a medium price, offering quality at a reasonable cost.

3. Over Charging Strategy: 

Medium quality with a high price, which may not sustain in the long-term.

4. Medium Value Strategy: 

Medium quality and price, balancing cost and quality.

5. Rip-Off Strategy: 

Low quality and high price, a negative strategy that may damage reputation.

6. Good Value Strategy: 

Medium quality with a low price, appealing to cost-conscious customers seeking reasonable quality.

7. Economy Strategy: 

Low quality and price, targeting the budget segment of the market.

Use Cases:

This pricing strategy matrix is valuable across various sectors to optimize pricing according to product offerings:

1. Electronics:

Use: Determining pricing for new gadgets or appliances.

Presenter: Marketing Director

Audience: Sales Team, Product Managers

2. Automotive:

Use: Setting price points for different car models.

Presenter: Brand Manager

Audience: Dealerships, Marketing Staff

3. Pharmaceuticals:

Use: Pricing drugs based on efficacy and market competition.

Presenter: Product Manager

Audience: Distributors, Healthcare Providers

4. Consumer Goods:

Use: Aligning pricing with product quality and brand positioning.

Presenter: Brand Strategist

Audience: Retail Partners, Marketing Teams

5. Software:

Use: Software licensing and subscription model pricing.

Presenter: Sales Manager

Audience: Corporate Clients, Partners

6. Fashion and Apparel:

Use: Pricing strategies for luxury vs. economy clothing lines.

Presenter: Merchandising Manager

Audience: Retail Buyers, Fashion Marketers

7. Furniture Manufacturing:

Use: Deciding price points for premium and mass-market furniture.

Presenter: Product Line Manager

Audience: Distributors, Retail Chains