Low-Price Strategy

Low-Price Strategy

In marketing, a strategy in which a newcomer to a market establishes a low price for products, especially when there is already significant competition. This can be advantageous when the seller must rely on high volume for profit; that is, even though profit margins would be low, the net income would still be high because of the large number of sales. A low-price strategy also helps create market share.
References in periodicals archive ?
A low-price strategy is a good approach for mass customer acquisition, but can be harder to sustain in the long term and is one of the fundamental reasons that MVNOs fail.
In order to achieve higher penetration, Albert Heijn is pursuing a low-price strategy.
A high-volume, low-price strategy is also an effective weapon against oil producers such as Iran, Saudi Arabia's rival for influence in the Middle East, and Russia, which has allied itself with Iran in Syria and elsewhere.
This chain led in terms of outlets, transactions and value sales in 2014, due to strong brand recognition and a low-price strategy.
Fortescue Metals Chairman Andrew Forrest had been the most vocal backer of the suggestion for a parliamentary inquiry, charging that Australia's two largest iron ore producers, BHP Billiton and Rio Unto, were purposefully pursuing a low-price strategy in order to push smaller, higher-cost iron ore producers out of the market.
Some chains, such as Wegmans Food Markets, Publix and H-E-B, opt for an everyday low-price strategy, with occasional coupons, in an effort to move product consistently, rather than footballing prices to create a spike in sales.
This low-price strategy has also been adopted by Ajantha Mendis ($50,000, `26.
The Chinese handset vendors have now extended their reach and low-price strategy to the quad-core phone segment," said Lisa Soh, an analyst with Macquarie, according to a report by (http://http//articles.
That, according to Chen, is clear evidence that brand vendors' low-price strategy has lifted market acceptance of large-size TV models.
Table 2 shows that a low-price strategy is more important in Germany than in the U.
We believe that Magnit continues to demonstrate solid results thanks to low competition in the regions where its low-price strategy is most effective; this is because real incomes in these regions are lower than in Moscow and St Petersburg, and price is the main criteria for selecting where to shop.
Jaguar has stunned its competitors with its low-price strategy for the new XJ6 range, it was revealed today.
Full browser ?