Selling shoes in Rwanda is largely hinged on demographics. the young people contribute to the highest margins of the generation. Most youths prefer shoe wear with style and this will be to my benefit as I advertise and sell the shoes. Being a foreign market, I will need to understand the spending power of those people. Most of them are middle class so the pricing must take them into consideration. The best pricing strategy here would be that that which would reach most of the targeted consumers. As a new entrant, the price will play a critical role in penetrating the market.
As a result, I will opt for penetration pricing. This is a pricing strategy suitable for high quality goods at low prices. This combination is bound to attract a number of customers who are looking for an economical solution to their foot wear problem. The strategy will attract many young people, most of them are not financially stable so they will be looking for a product that gives them the best quality as required (Pollono & Vela, 2019, 75). The pricing will beat the competition while the pricing will attract more customers to purchase the item. As a new entrant in the market, seizing a good customer base will help increase sales.
The pricing strategy combines the effect of good quality at a low price. While other companies may be targeting premium customers, I will opt to target all customers equally. The more the customers, the higher the chances of getting a bigger sales margin in the beginning. This strategy will capitalize on the youth, whose spending power is limited. Therefore, they will opt for the best quality of goods at the lowest price. In this way, I will accomplish sales without the need to advertise to the whole demographic, just a specific group.
Pollono, E., & Vela, J. (2019). Implementing pricing strategy by developing and implementing effective discounting practices. Pricing Strategy Implementation, 71-77.