As technologies are becoming more advanced, this has resulted in an
increase in living standards, a higher demand for comfort and convenience, and
a higher demand for freedom and safety. This is leading more and more home
owners to adopt smart home technologies to access most of their facilities and
devices wirelessly, this is a perfect time to enter such a young and booming market.
Looking for your keys could be a hassle, especially when time isn’t on
your side. People end up losing their keys and go through the trouble of calling
a lock smith to replace the key or even the locks. Losing our keys could also
increase the probability of a break in.
provides easy and accessible entry through fingerprint scan. Our product eliminates
the fear of losing traditional keys as well as the need to physically carry
them. In addition to our products convenience, it also increases security
measures making it very difficult for break-ins as compared to traditional
A good pricing strategy is crucial for a business to properly enter the
market and become profitable. When setting s price the company has to take into
consideration many factors such as competition and their position and prices,
production and distribution costs, the target customer base and more.
Given that we are launching our product in the US and Japanese markets
we will use different pricing strategies for each country for introducing our
product. For the American market our goal is to capture consumer surplus at the
beginning of the product lifecycle, so we believe a price skimming approach
would be most suitable. Meaning we start
with a high initial price, then gradually drop the price to attract more customers.
Since Japan is more technologically advanced and have adopted technology
into their lifestyles, meaning we are entering an already existing market with
more competition. Given that we believe a market penetration pricing strategy should
be used, meaning we introduce the product with a lower price attracting more
customers and gaining more of the market.