SELF TEST #15: Identifying High Potential Price Points

Test #1:

Define Standard Leader products and companies.

Test #2:

Define Performance Leader products and companies.

Test #3:

Define Price Leader products and companies.

Test #4:

Define Stripper products.

Test #5:

Define Predator products.

Test #6:

Define Next Leader products.

Test #7:

Define Reformer products.

Test #8:

Define Transformer products.

Test #9:

What is Price Point bias and why should that concern us?

Test #10:

Determine the Price Point of each of the following examples.

  • This company builds smaller than average homes on smaller than average lots. They build these homes in outlying locations and make non-essential features, such as microwaves and fireplaces, optional.

  • This company is an adroit imitator of branded products. At a retailer's request, it creates look-a-like products at lower prices and without brand labels.

  • This company sells in its well-known corn flakes and rice crispy brands and their spin-offs. It leads its industry.

  • This company had excess manufacturing capacity and agreed to produce a new line of products for another company, using the other company's brand name. This company had to compete with other manufacturers in order to become the producer of choice.

  • This company is a leader in its industry who faced competition from a low-end competitor. In response, the leading company introduced a "fighting brand" priced near the price of the low-end competitor's product.

  • This company is a book publisher with a back list of 4,000 titles on various subjects. These titles are all in the public domain, so they require no royalty payments. They are packaged for distribution through retailers at prices 30% below other books.

  • The YMCA offers fitness memberships at a price about 1/3 less than that of private fitness clubs and now has an image to match those clubs.

  • This company's product sorts through information on the internet to deliver clips of relevant news to the customer. It is cheaper and quicker than the consumer sorting through many databases himself.

  • This company offered long distance service at much lower prices, providing the consumer dialed 10-10-321 in order to reach the long distance line.

  • This company offers intravenous infusions, administered by a nurse in the home, for a price of $300 per day. This price compares to $600 in a hospital.

  • This product enables schools, hospitals and other organizations to create networks without wiring by using wi-fi.

  • This company is an online business providing free web-based software that lets users upload, view and edit their photographs free of charge and order professional prints from the web site. The consumers may also share these photos with friends.

  • This company offers subscribers DVD movies three at a time from a list of movies that is several times what the consumer might find at the local Blockbuster retail store.

  • This company offers upscale merchandise and apparel to discerning consumers in upscale shopping malls.

  • This company is the leader in the hotel industry. It offers products at the low, medium, high and super premium Price Points.

  • This company produces the leading cola in the marketplace.

  • This premium priced running shoe contains a microprocessor placed under the arch of the foot to measure the compression of a runner's stride.

  • This leader in the snack food industry introduced potato chips flavored with a BBQ sauce produced by a leader in the BBQ sauce industry.

  • This leader in the orange juice category introduced calcium to its juice without a price increase in order to compete with another leader who offered calcium in its product.

  • This product is a bowling ball with printed images designed or chosen by the consumer on the bowling ball. This new bowling ball sells for about $140 compared to $80 for a typical bowling ball.

  • When Lotus 1-2-3 dominated the spreadsheet market, various "clones" offered similar features for prices often half that of the Lotus product.

  • This leader in the motorcycle industry introduced a low cost model aimed at its Japanese competitors and another, even cheaper, model focused on the first time buyer. Both models carried a different brand name than the parent company's brand.

  • This company competes in the credit card industry. It introduced a jet black card, offered by invitation only, with a $1,000 annual fee. In return, the consumer receives upgraded travel and personal help for travel needs, as well as special privileges at upscale merchants.

  • This company vaulted to the top tier of the U.S. car rental industry by providing vehicle delivery in most local markets, as well as customer pick-up service, for lower prices than the on-airport services.

  • This company specializes in creating boutique hotels. Each hotel is targeted at a specific type of traveler, with better than average amenities for a slightly higher price.

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