Pricing Strategy for Sony Ericsson K800i?

Question

I'm doing a project on marketing and chose the k800i, However i can't find any info relating to the pricing strategy! anybody know anything bout it?

Answer 1

I think talking about Mobile phone market in general, most of the companies are forced to adopt "penetrative pricing" strategy. Primary reason behind this is intense competition and low brand loyalty.

Few years back the market was dominated by the giants like Nokia, Motorla and Sony Ericsson. Today we have Samsung, LG and many local brands of a particular country. Apart from this whole new category of smart phone/business phones has evolved. Blackberry, O2, HTC, Dopod, Iphone and countless others enjoy considerable market share.

Companies can no longer enjoy the power to detect their terms. Latest example is Apple Iphone. Although this particular phone was very popular and very much in demand, Apple not only forced to reduce it price but had to refund money to the customer who bought it at higher price.

For ever product category and price range you will have countless options. When Motorola launched its razor phone it was the only phone in that category of fashion phone. Today almost every company has phone in that category like LG shine. That is true for every category. Even if companies try and create a niche, in no time other companies will follow.

Companies try and recoup the cost of research (if they had any) by achieving higher volume. And that can be done by only with competitive pricing.

Answer 2

I don't know about this specific phone, however the typically mobile phone company will charge you a minimal amount for the phone (or even give it away free) in order to lock you into an expensive 18 month Contract (where all the fancy features cost extra)

.. so assuming a typical strategy, it's "promote the phones features" as a 'life style' or 'fashion' accessory whilst hiding the fact that it's going to cost you over a thousand quid by the time the Contract expires (i.e. same as Apple iPhone)

Answer 3

first of all of the sony ericsson k800i could be like around two hundred$ if u didnt comprehend that ur self already. and in indian that could desire to be two hundred U.S. money = 10 124.0192 Indian rupees