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Marketing Puzzle -- WhatsApp

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Kelly Leung

on 13 May 2013

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Transcript of Marketing Puzzle -- WhatsApp

The Charging Plan of
WhatsApp AGENDA Why is this puzzling? TAKE AWAY Description

Why is this puzzling?



Take Away 1.Keen Competition Free of charge at the beginning Marketing Puzzle! By Devil Wears Prada Importance Description of Market Phenomenon THE PUZZLE! Why is there a change in the pricing strategy in WhatsApp? 2.Loss of Customers The Charging Plan of
WhatsApp 4Ps
Pricing Decision Profit Company Explanation Debug Apps Free Download Identify Bugs Debug &
Modification Bargaining Power
to Charge! Initial product diffusion
>By getting into the
top download list Gain a large customer base By charging a price: Capture profit from Loyal customers

Customers have to pay reluctantly Enlarge market share

Initial product diffusion

Eliminate competitors Confident to charge &
Expect to survive Q&A Why is WhatsApp free
at the beginning? Why is WhatsApp so
confident to charge
& expect to survive? 3. Assume WhatsApp
is Profit Maximizer Example: Get Big Fast WhatsApp Have you considered
other alternatives? Most Popular
Instant Messaging Apps
in the world First Choice of
Platform WhatsApp is
no longer FREE,
but CHARGES! People have
no choice,
but PAY! Capture profit from Loyal customers

Customers have to pay reluctantly
Full transcript