Buddy\'s product manager is under pressure to increase market share, but is unce

Question

Buddy's product manager is under pressure to increase market share, but is uncertain about how to make the product more competitive. The product is reasonably well-positioned in the Thrift segment and enjoys relatively high awareness and accessibility. Which of the following would most likely result in a quick increase in market share?

Increase awareness by 5%

Increase the unit contribution margin by decreasing the MTBF

Lower the unit selling price to the bottom limit of the segment price range

Re-position the product to the ideal spot within the segment

Explanation / Answer

In order to quickly increase the market share, the product manager has to lower the unit selling price to the bottom limit of the segment price range because it is mainly positioned well in Thrift segment. The consumers in this segment are aware of the product. To quickly increase the market share, he has to reduce the price within the segment.

Rest of the options might not work because-

Increase awareness by 5% - It will not increase the market share quickly and will take a lot of time to convert in revenue and hence market share.

Increase the unit contribution margin by decreasing the MTBF - This means to increase the price of the product. This strategy will reduce the sales and market share because the consumer segment is thrifty and they will not like to spend more money on the same product.

Re-position the product to the ideal spot within the segment - The product is already very well positioned in the segment as given in the question.

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