Segway was a product aimed at solving the transportation needs of the people in a green and environmental free manner. The product was a self balancing transportation machine for a single person that could take the rider anywhere they could normally be able to go by either walking or driving. The small scale of the machine as well as the flexibility it allowed made it possible for riders to go anywhere and everywhere using Segway. However the company that introduced Segway in the market, failed miserably in getting it to sell that way it should have. The main reason for this was an inappropriate marketing and pricings strategy.
The marketing strategy that was employed by the company to promote Segway was to highlight the flexibility it offered of taking the consumer anywhere they want to go, while promoting the lightweight and the pedestrian size of the machine. While the marketing strategy that was employed was for the masses, the designing of the strategy was such that it related to only a niche of the market, including only those who tend to walk. Similarly the pricing strategy that employed by the company was skimming the market. “The success of a price-skimming strategy is largely dependent on the inelasticity of demand for the product either by the market as a whole, or by certain market segments” (Piddshetti, 2007). The official price for the product was $3,000.However the market saw the prices of the product rise to almost $5,000. This depicted irregularity of pricing for the product in the market which was already priced exceptionally high as opposed to the demand for the product in the market.