Grohe Entry Level Price Strategy

With the development of the sanitary ware industry in China, many high-end brands to enter China and seize the high-end market share. With the increase in the number of competing brands, and high-end market capacity is limited, making the original higher profit margins continue to shrink, the overall decrease in profits. On the contrary, the development of the estate property and rural urbanization progress in China’s real estate market for mid\mid-high-end market capacity expansion waves. Although the last two years the real estate market is subject to greater suppression of strikes, but with the arrival of the first batch of buyers re-decoration growing demand, more consumers are willing to pay more money to improve their lives environment. It also makes the decoration of the levels of consumption increase, led to further enhance the capacity, mid\mid-high-end market.Grohe companies already have a solid market share in high-end market, but also faced with the problem of how to further expand market share, increase sales. How to ensure the continued growth of the company’s overall profit and the rapid increase in sales, become the Grohe important research direction.In this context, we proceed from the Grohe where industry, consumers, competitors, pricing strategies, and the elasticity of demand for the test to study the pricing strategy of the entry-level products in Grohe.This study contribute to the company of the Grohe better understanding of the entry-level pricing strategy, the high-end brands to enter the low-end market, set prices with some guiding significance.