Madhavan Ramanujam: preference

Transcript context

…I think it's back. It's back? Great. And they also launched this thing called comfort, which is a bit between Black and Uber X in terms of both price and also the types of cars. But it comes with certain features. For instance, you can say quiet preferred on a Comfort or a Black. And that's literally why I take one of these, because I'm probably working on my Uber ride over and I like to just have the quiet and just work on things, and I'm willing to pay for that and I belong in a different segment. But of course if I'm using, let's say Uber for my everyday commute, sometime maybe I do pool. So depending on even my point in time or depending on my situation, I might actually belong to different segments, and understanding this and then productizing towards that becomes key. So the topic that we have been focused with many companies nowadays is not just doing a static view of segmentation, but truly understanding dynamic segmentation and how to offer product and services around the fact that people switch segments. So if I'm ordering on a Friday night on a food delivery platform, maybe I'm thinking pizza. Tuesday afternoon during my office time, maybe I'm thinking of a different type of cuisine. So if I know all of these things, healthy choices versus not, when can I productize what, then you actually start getting a dynamic views of segmentation. And the technology around us actually allows us to take a very dynamic view of segments and that's very fascinating. So the [inaudible 00:53:09] there are multiple steps. First do the segmentation, that's the basic. [inaudible 00:53:14] a static view. Maybe if it's relevant, even a dynamic view of this is the next frontier. Which you shared just now reminded me of another really interesting framework in your book, around pricing strategy. And you talk a lot about just how important it is, one to just write down your strategy and why you think this is the right strategy. But specifically, you have these concepts of either you want to be maximizing, you want to be penetrating or you want to be skimming. And I thought this would be a good time to chat a little bit about that. Can you just talk about what these three strategies are?…

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