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Pure Barre: A Case Study

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Risk and Financial Impact As with any new product initiation, potential risk factors need to be addressed. The first identifiable risk associated with the new On Demand product for Pure Barre is its low cost and convenience. This can be viewed as both a positive and negative risk. It is a positive risk because its $29.99/month membership is significantly lower than the in-class membership fees that range from $160-$225/month. This low cost will be appealing to not only existing members, but new customers interested in taking Pure Barre classes. The company could see a surge in membership purchases because of the more affordable monthly price. This could also have a negative effect for the company by reducing the number of paid memberships for in-class sessions. There is a significant gap in price of $130.01 between the On Demand subscription and the lowest monthly membership for in-person classes, so the company would need to develop strategies to combat any marginal loss. Continuing this point, the risk of the new product’s convenience also has a negative/positive effect. More consumers may find it more convenient to take their barre classes at any time using the …show more content…
By involving more people in the organization to help with product introduction, there is a better sense of trust, openness, and fairness so that all department’s opinions are heard and incorporated. This is also achieved by receiving continuous feedback from all team members to reach the desired level of product quality to meet customer expectations. This approach could also extend to the customers by asking for their feedback about the product to see where improvements can be made and if there are any actionable

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