Creaming

The policies generally recognized for the launching of a product are the policies of creaming and penetration.

The policy of creaming consists in introducing the new product at a “high” price which will be lowered gradually throughout the life cycle of the product.

This policy allows the Entreprise which carries out it to adapt (at least partially) the “ surplus of the Consommateur ” (i.e. the fact that certain consumers have a provision to pay for a product more than others).

It has the advantage of being able to release a strong margin which could be more or less maintained while lowering the price gradually as the Coût S decrease along the curve of experiment or because of the economies of scale.

It has as a disadvantage however of attracting competitors which will be able to imitate more or less easily and quickly the innovating company. This is why it must be accompanied by a permanent day before and of capacity to react quickly to the action of very undertaken imitatrice.

Example of practice of policy of creaming: the industry of the Luxury (which seeks at the base to aim at a top-of-the-range public)

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