Creative Pricing StrategyWhy I chose to share it with you ? it’s because I’ve learn good information regarding setting up price in time of crisis.
The seminar was held by Frontier Handy Irawan and presenting Hasnul Suhaimi the Director of excelkomindo as the speaker.
He is smaller that I imagine a director would be but, has a various ideas in time of desperation.
The story begins with his ideas of increasing subscriber, the market did not respond to any program he has launch…what to do next? He was looking for xl positioning…It started out from esia’s ad of “ Rp. 1000 per Hour” campaign…this make him realize that there is no category between CDMA and GSM…even tough esia’s coverage, service and quality was far below xl they could steal the market attention by pointing the fact that using esia is a lot cheaper, and the market react.. esia’s subscriber increase…
His idea is to wipe out the competitor mapping and put CDMA and GSM at the same category…they are all competitor so what strategy he chose to win…
1. lower the price
2. increase volume
3. profitable growth (revenue increase)
That’s when he launch Rp. 25 /sec campaign (by calculation it means 25% discount for xl users)….the market didn’t react. At this time he conclude that the market did’t like the idea of 25% discount…
He then turned to the ARPU, which is only about 2 minutes per users, the idea is to lower the price but at the same time increase the revenue…
Rp. 10/sec after 2 minutes --> Rp. 1 for the rest of the time you called. It’s about 50% discount. Then the market react, xl gain about 18% subscriber market share.
But the trick is…really pay attention on how to communicate this pricing strategy… yep…communication is the key to market respond… it’s the Rp. 1 that was used for the campaign…regardless the 2 minutes calling condition the user obliged to do. Jackpot !!!
Great story…I could use it somehow in my company…
Quote:
Pricing is just Pricing, it’s how you communicate your price that matters..
What will happen if you don’t do anything …”I’m fired”
What will happen if you do something and failed?...”I’m Fired”
Than you have nothing to loose, Just try it!...
Xl is not at the best coverage, service and quality….and not the cheapest in price…”if your not at the best value and not at the best price…your in the middle which means you’re stuck.
