In this scenario, the most successful pricing plan would evolve as the product progresses through its life cycle. In our current scenario of launching new bike designs and stores, an initial method is penetration pricing, in which we provide reduced costs to attract new customers and raise brand awareness. Netflix is a wonderful example of this strategy's effectiveness, beginning with a lower monthly charge and gradually increasing it while maintaining a loyal user base. Pricing must adapt to shifting dynamics as a product moves through its life cycle. With no competition during the debut period, we can contemplate price skimming, establishing higher initial pricing to attract early adopters.

Price penetration, on the other hand, can be used to quickly dominate the market. During the expansion stage, competitors frequently decrease prices in order to win market share. Later on, when competition is fierce, competitive pricing becomes critical. Throughout the product's life cycle, market segmentation is critical. Price sensitivity and needs have been explained by various client segments. Premium segments that place a premium on quality may be charged a higher price. Price-sensitive segments, on the other hand, may be targeted with discounts or bundle deals, whereas those seeking specific features should see prices aligned with their perceived worth.

Monitoring market conditions, competition actions, and customer feedback is critical for effective pricing management. Continuously assessing and changing price, as well as remaining adaptable to market changes, enables long-term success by optimizing profitability and market share.

Kenton, W. (n.d.-c). Penetration pricing definition, examples, and how to use it. Investopedia. https://www.investopedia.com/terms/p/penetration-pricing.asp

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