A leading Indian 2-wheeler brand while formulating its Pricing Strategy, faced a challenge of limited information about the price quoted by its dealers at the last mile. Non- adherence to brand approved pricing was leading to customers moving towards competition.Approach
A Price Benchmarking study was executed to gather complete market information – of the brand as well as its direct competitors. An important aspect of the study was to cover the buckets (Insurance, RTO, Accessories, Taxes etc) under which dealers were quoting an additional price. This required the respondents to capture comprehensive pricing structure.
The study was spread across 780 dealers across different geographies, covering 23 variants. These prices were benchmarked against 22 competitor variants. A comparison of the entire pricing structure was executed to identify the additional money levied under each componentImpact