Smarter Pricing: How to capture more value in your market

2. Leverage tradition

Value players are frequently new entrants from outside the conventions of an industry. Stelios Haji-Iaonnou, founder of EasyJet, the no-frills airline, had a previous family background in shipping. Coming from the outside can be a strength, but it may also be a vulnerability in an industry where tradition has a value.

How it works

Long-established companies with emotional historical connections can use this extended credibility to defend against lower-priced competitors. For example, Ravida Sicilian sea salt draws advantage from the fact that the Ravida family have been producing salt in Sicily since 1700.

The history of Heidelberger Drucksmachinen reaches back to Andreas Hamm in 1850 and the manufacture of flat-bed cylinder ...