Should Snuggle liquid fabric softener be positioned as a premium product? What are the advantages and disadvantages of pricing this product with a low-pricing strategy?
What will be an ideal response?
Snuggle liquid fabric softener should definitely be positioned as a premium product. Because most of the other products within this market are premium products, it would be logical and beneficial to position Snuggle as a premium product. If it were positioned differently, Snuggle would have a very slim chance of survival.
But in order to succeed, Snuggle must differentiate itself. And Snuggle has. Even though it has positioned itself as a premium product, its cost is well below that of other premium products. There are advantages and disadvantages to this particular cost strategy.
Because consumers today are more aware of methods to save money, introducing this high-quality product at a low cost gives consumers an incentive to buy Snuggle liquid fabric softener. It saves them money. On the other hand, consumers have grown to associate price with high quality. If consumers are aware of the fact that similar liquid fabric softeners are of higher price, they may associate this elevated price with elevated quality. There exists the possibility that the advantages will be outweighed by the disadvantages. If this occurs, then there is little chance
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