Identifying a pitch that resonates with you Essay Example
Aaron Krause made his presentation at the Shark tank which became one of the biggest success stories in 2008. The product is a smiley shaped sponge which has a rough exterior that does not leave scratch marks. The company currently makes all the production and has manpower of 50 people in Folcroft, Pennsylvania.
Cost leadership strategy
This involves winning the market share through an appealing cost that is sensitive to the customers. In the presentation, he stated that the cost is about $1 with a retail price of $2.80. He explained that, the product is made from top quality product which cannot be compared with the cheap ones found in the market. The products allow the customers to get more for their money.
The product should differentiate them in some way so that they can compete successfully. With a market saturated with this kind of products, there was need for differentiation to hit the market. First, he stated that, the product is scratchy but does not scratch anything. The product uses special foams that change texture in different temperatures of water giving it a chance to be perfect in cleaning instruments for any task.
The company has focused on a cleaning product with unique features like being soft on hot water and hard on cold water. Through the product innovation, like where the smile can be used to clean specific edges of products, the company is put at a competitive edge. With this the company has received a lot of returns in the investment.
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