Case Study Analysis: Pricing Strategy, Freemium Model and Revenue

This case study analyzes the impact of pricing strategies, specifically focusing on the Freemium model, on business development and revenue generation. The study highlights how the organization implemented a new pricing strategy, leading to a 20% increase in revenue, with projections of reaching 30%. It examines the pros and cons of the Freemium model, including its wide accessibility and the challenges associated with pricing. The case study also explores how the Freemium model helped the organization understand its customer base better, improve service experiences, and increase customer retention. The analysis provides insights into how businesses can leverage pricing strategies to drive growth and enhance customer engagement, with a particular emphasis on the Freemium approach.

Running Head: CASE STUDY ANALYSIS
Case Study Analysis
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2CASE STUDY ANALYSIS
Answer 1
The organization had considered the pricing strategy, which has resulted in the
increase in the revenue generation by 20% and it was estimated that the increase should have
reached the rate of 30% within the period of next 3 months. The organization had closely
observed the savvy group. The pricing strategy had been changed keeping in concern the
increase in price or degradation in quality that had been provided in terms of the ‘free tier’.
Answer 2
Pros and Cons of Freemium
Pros has been noted in the fact that the
Freemium has been provided the greater extent of functionality.
A huge number of the entrepreneurs were relying on the model
Cons
The cost variant had been defying across the market in regard to Freemium
Lack of additional features that could have been included in the free tier
Answer 3
The introduction of the freemium has allowed the organization to develop a new
understanding of the customer base and the needs of their target group. Though the free tier
had provided the customer with comparatively lesser amount of data, it ensured a greater
attraction of the customer to the service of the organization. The developed pricing strategy
had announced that the freemium model would be established. By providing the organization
to ‘familiarize with the structure’ the organization has provided the customer with a better

3CASE STUDY ANALYSIS
experience in terms of the service and ensured greater retention of the customer base. The
revenue generated has increased from 20% to 30%.