Page 146 - Demo

of the solution and be mixed with an attractive communication strategy toexplain the product%u2019s added value. Most of the time, the price isannounced as a promotion with the date of the end of this event added.The basic assumption of this strategy is that the customer will be satisfiedduring this first experience and recommend it to their community. Temporary discounts, limited-time offers, and seasonal promotions enticecustomers. Promotions can be useful to instil a sense of urgency inpurchasing the frugal solution regarding the climate environment.a) Skim pricing This strategy offers a tiered pricing approach. At the beginning, the solutionis available at a lower price point with basic features, sometimes for freeduring a short period (to test it). Some additional features or premiumversions are offered in addition at higher prices and with higherfunctionalities. This allows customers to discover a new solution when thisone is not easy to explain (e.g. software or applications) and to experiencethe product%u2019s value before committing to a purchase. The user will choosethe level which best suits their needs and budget.a) Subscription modelThe innovative solution can be offered on a subscription basis on acrowdfunding platform online. Crowdfunding provides locally sourcedfinance for innovative projects before the new solution is available on themarket. Investors pay in advance for the new solution which is not yetready to sell. It is expected that a large number of people give smallamounts of money, via the internet, in order to finance the project. This is avery interesting form to test the idea of the new solution on the market. Ithas to be mixed with a very efficient communication policy to be attractiveto investors. These crowdfunders need to understand how the innovationwill change their habits or behaviours without using the product first.a) Referral programmesReferral programmes can be implemented to encourage word-of-mouthrecommendations and reward loyal customers with discounts or exclusiveoffers if they agree to be identified as a promotor of the innovative solution.This case is very efficient, though customers often do not want to belabelled as an influencer. Very few customers will do it for free. Brandshave to pay for this collaboration. This experience can be a very interestingway to obtain qualitative information from the market through such people.Main of the suggestions to change provide from this channel and aremostly based on how to make best use of the product according to theusers.1463 Frugal Innovations