The client, a large MNC, wanted to review the price strategy for one of their highest selling brands in the country which were going out of patent in a few years.
A price correction was needed to get the maximum market share before other competition crept in to take stock.
The Methodology –
The study was conducted among 2400 growers of 6 different crops viz — Rice, Sugarcane, Red gram, Soybean, Tomato, and Bengal Gram.
The study was done through pen and paper method using discrete choice modeling for value pricing.
Stimulus – Task cards having randomized price levels, 12 versions
The Outcome –
The price level where revenue was maximized with significant gains in the volumes was clearly shown. The price point was slightly different for each crop, but an average was taken into consideration.
The markets and crops that are most price-sensitive were taken due note of because the price correction would have the maximum impact in these locations and crops.
Pricing simulator also allowed the client to simulate various scenarios keeping competition in mind.
Finally, 10-15% price reduction was suggested to the client
At the beginning of 2018, the client’s product was repositioned with a reduced price on the market basis the findings of Q&Q.
