Competitng against free
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Transcript of Competitng against free
HBR Article by David J. Bryce
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Skype and Ryanair are two examples which have posed threat with their free
offerings
Definition
Requirements
A free product that appeals to a very large user base so that even a low conversion rate of users to paying customers will
generate substantial revenues
A high percentage of users willing to pay for the premium version
Definition
Requirements
A broad product line—preferably one that complements the free product—
The ability through partnerships to sell a broad line of products to users of the free product
Charge third parties
Definition
Requirements
A free offering that attracts either many users who can be segmented for advertisers or a targeted group that makes up a customer segment
Third parties willing to pay to reach these users
Definition
Requirements
Products or services that can be bundled with the free offering
A free product that needs regular maintenance or a complementary offering
They,
Ignore Launch Free too Early
Launch Free too Late
How to Respond to FREE???