Huawei: Brand Life Cycle Model

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Product category I chose to profile is smart phones. Apple Apple follows a “good-better-best” pricing strategy on its new devices. Its cheapest products are usually priced in the mid range, but they ensure a high-quality user experience with a lot of hardware and design features keeping profits high. Apple offers three pricing options: o Price sensitive consumer  $199 with two year contract o Enthusiast  $ 499 with one year contract o Luxury consumer  $ 799 without a contract • It uses a retail strategy called “Minimum Advertised Price” (MAP) that prohibits resellers or dealers from advertising their products below a certain minimum price. • Apple is growing every day with new early-bird customers, giving them multiple pricing options…show more content…
Huawei Huawei is using Low-pricing as a “tie-breaker”. It has managed this achievement through adopting an online selling approach - selling a line of devices by Internet. This approach has wound up to be a major factor to reduce costs in the competitive low cost smart phone markets. Recommendations: • Focusing on key countries first like China, Japan and other Asian countries rather than turning focus towards Europe and other western countries. • It should add more features but maintain its price in order to compete Nokia Nokia uses Brand Life Cycle Model as its pricing strategy. This model sets different prices depending on the phases of product life cycle. Nokia manages to target all customer segments with wide range of price variations depending on customer’s position and needs. It initially sells products at a higher price to gain profit then after a period of time, reduces the price depending on their competitor’s price. This successful pricing strategy enables Nokia to gain competitive advantages in the market. Nokia positions its top end devices as a classy product. To the middle segment customers these devices are in the form of the best alternative. To the lower end segment, Nokia gives actual value, as a high-tech product, at affordable
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