How to win at Markstrat (Markstrat Tips and Tricks) – Vodites

I will briefly share my learnings about the Vodites market.

My main view is to be the first to enter the market. The trick is to enter with the basic and least expensive product, as long as you are the only product in the market, the consumers will have no other choice but to purchase your product. The ad spend doesn’t have to be very high since there would be no competitors. Though you still need to maintain ad spent to increase the market size.

However, if a competitor happens to enter the market at the same time as you, then you won’t gain any market share, especially since the product would not meet ideal values.

The second advantage to entering the market with a basic product is when it is time to R&D the upgrade, you will notice significant (more than 50%) reduced costs. This makes it very easy to upgrade the product as soon as a competitor enters the market.

Target the largest markets first, Innovators and Early Adopters, they will also pay a premium for your products. A rough estimate for RRP for a Voditie product on launch is $1,000 or five times the base cost. If you are the only competitor, you may be able to charge even more.

  • Cheryl Nickel

    So, with no reference point, how do you determine starting retail price for Vodites, with no other competitor in the market? I tried running a regression analysis from Sonite products, to at least get an equation, but ended up with a recommended price of something like $477, which seems incredibly low. Struggling to come up with a method for determining the best price for a product that will land directly between Innovators and Early Adopters, in terms of attributes, but is advertised 75% to Innovators and 25% to Early Adopters. Suggestions?! Please help!

  • Cheryl Nickel

    So, with no reference point, how do you determine starting retail price for Vodites, with no other competitor in the market? I tried running a regression analysis from Sonite products, to at least get an equation, but ended up with a recommended price of something like $477, which seems incredibly low. Struggling to come up with a method for determining the best price for a product that will land directly between Innovators and Early Adopters, in terms of attributes, but is advertised 75% to Innovators and 25% to Early Adopters. Suggestions?! Please help!

  • Hi Cheryl
    In theory, if you are the only product market in vodites, you can charge anything, as the consumer only has you as the option. I have never got to try this though. Max I have seen is $1,600 and that sold without any problems. The price perception of the product won’t be ideals, but it doesn’t matter if you are the only one, they will still buy.
    Don’t worry about trying to find the ideal price on launch, especially if you think you will have the only vodite’s product.
    On launch, I would advertise evenly 33% to Innovators, Early Adopters and Followers, with about 20% of advertising on Research. The key thing on launch is to increase your brand awareness, and it is very beneficial to do it to all three segments. All three segments will buy the product if there is no one else.
    Regards,
    Travis