TERM 1
Price
DEFINITION 1
The price of the X-17 drone is $1999.99.
We are utilizing the market s kimming pricing strategy
which means we will be entering the market-charging the
highest initial price that cust omers will pay.
As the demand begins to decli ne, we will lower the price
in order to attract, more p rice-sensitive segment.
MSRP=1,599.99 Mark ed up to $1,999.99 we believe thats
how much our customers will pay.
TERM 2
Profit Margin
DEFINITION 2
Our profit margin is $32,999.25, which is 22% of
total sales.
Our main competitor DJIs margin is 38%.
Maintaining and increasing our profit margin will be
critical, when we lower the price due to market
skimming we will have to compensate in order to keep
a healthy profit margin.
TERM 3
Place
DEFINITION 3
We are using selective distribution as our distribution
strategy,we are in-between intensive and exclusive distribution,
only a few retail outlets cover our sp ecific geographical
region.product is a high end good, this strategy will allow us to
uniquely tailor our product offerings to the sp ecific demand that
exists in the region
we have a direct channel through o ur website
Additionally we have an indirect channel in which we supp ly retail
outlets with our product, at stores su ch as Frys Electronics and
Best Buy.
TERM 4
Promotion
DEFINITION 4
Our main avenue for advertising will b e our website,
which we will further promote throug h online ads, social media,
and outdoor promotion.
Our plan is to utilize Facebook, Instagr am, Youtube, and
Snapchat to share the experience o f people flying our drones,
focusing on the the video from the d rones point of view. Using
the latest technology we stream Fac ebook live. We offer prizes and
discounts to people who like and shar e to further promote our
product. The outdoor promotions con sist of a drone stand with
videos, demonstrations, and possible v olunteer trials.
TERM 5
Feedback Mechanism
DEFINITION 5
Our company will rely on online surveys, customer
reviews, customer service team input, scheduled
product tests, and the research and development
team for feedback on our products and what we can
do to further stimulate competitive advantage.
