👉 Background: Meta rebranded itself two years ago to focus on the development of the metaverse. And it's fair to say the venture has been absolute money pit: they've spent over $100 billion investing in the R&D and product development.

👉 What happened: Now, Mark Zuckerberg has introduced the Meta Quest 3 headset, which overlays digital images on the regular view of the world.

👉 What else: On release, Zuck has also taken a shot at Apple's Vision Pro by saying the Quest 3 is the "world's first mass-market mixed reality headset". It’s all part of Meta’s plan to get in early with AR headsets with a more appealing price tag for consumers.

What's the key learning?

💡Penetration pricing is a strategy where the price of a product is initially set low to reach a wide part of the market rapidly. And, this strategy relies on price-conscious customers choosing the new brand because of the lower price.

💡For example, Meta's Quest 3 will be $799 in Australia and will be released in 2 weeks - compare that to Apple's new Vision Pro which will cost $5,000 and will only be released next year.

💡While the penetration pricing approach can affect a company's profit margins, the long-term benefits of customer loyalty and brand recognition often outweigh the initial costs... so it's a bet that Meta is willing to take.

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