Pricing Strategies Watch the GE

Pricing Strategies

Watch the GE video. Which of the product mix pricing strategies discussed in the book most closely describes GE's approach?

General Electric relies on a portfolio-based product mix pricing strategy, which relies on the use of the Boston Consulting Group growth/share matrix. The growth/share matrix gives GE insights into the profitability vs. potential profit potential of products, in addition to the relative market growth of each product category. As of today GE has mentioned to the financial newspapers that they are considering spinning off their consumer goods division due to increasing consolidation of these markets. This is a direct result of their use of the growth/share matrix showing relative levels of profitability by product line.

How did the new positioning statements for the Monogram and Profile lines affect pricing decisions?

The Monogram positioning statement put this product line into a premium position, moving its position significantly above the Profile line of appliances. The Monogram has gone for a premium price point strategy to connote high value for the premium prices. Profile has concentrated on the midrange of the market, concentrating efforts on the middle class consumers who cannot afford the upper-end pricing of the Monogram Series of appliances.

Visit the website for GE's three appliance brands, GE, GE Profile, and GE Monogram. How do the sites support the positioning and pricing of the three brands?

They are dramatically different, with the Monogram site being completely separate, supporting the premium positioning. The site is done to connote the premium position and the use of these appliances in custom homes. GE Profile is more mainstream and focuses on the stylish yet utilitarian aspects of their product line. The GE site itself is more focused on functionality of products. The differences in branding and website approach in terms of positioning and pricing a significantly different and support the unique value propositions of each product series clearly and very well.