India is price sensitive market, where price is one of the key factors for any buyer to select supplier. Price defines positioning, target segments and the distribution channel even. The pricing strategy includes understanding price acceptance and rejection level, perception of customers on different pricing, payment options, discounts, skimming and other key parameter which help client in defining pricing strategy.
Pricing is combination of behavioral and analytical exercise. At any places where price is defined by market is a commodity where based on supply and demand price sets, however for any product which is not commodity, which has brand name need to develop a strategy to set the pricing.
Our pricing related Market Research Services are as below:
KMRC conduct depth interviews with the target customers to understand their psychology on pricing. This study results price acceptance level and rejection level, latent need, value addition which can encourage customer to pay premium, market wise skimming and discount offers expected and segment wise, product wise pricing.
Competitive pricing analysis
This can be a continuous process to keep a track of competition pricing for the end customer. KMRC help their client by providing real time pricing of competitors by Mystery Shopping and Enquiry Generation. Many times for a company it is not feasible to get pricing of their competitors, in many cases the front sales team updates company about competitor pricing; however this may not be in a structured format on a regular interval. KMRC commit here to provide negotiation pricing after all discounts and not only the proposed pricing.
Price resistance and acceptance
For any new product and brand it is very tough to reach to pricing. There are many models available to come to the pricing. Many times company uses trial and error method or skimming method; however the price variation may harm the brand value and reduces the standardization. For new product and brand, price is a sensitive area which is going to define positioning, brand image, customer segments, competition and other key attributes.
Rupee saved is Rupee earned. Cost cutting and cost optimizations are core strategies in today’s scenario. KMRC helps client to analyze cost, compare it with industry standard distribution of cost, identify cost effective innovations or techniques used in the same industry, analysis of cost made and route cause analysis for exceeded cost. KMRC benchmark competitors for reduced cost and suggest client different ways to reduce cost. Minimizing cost can help to increase profitability which gives higher margin and good cash flow. KMRC also identify here cost effective supply by evaluating different suppliers, substitutes and imports which can help to reduce cost.
Price point analysis
KMRC define different price point for standard products or services and then evaluate each price point. KMRC has a good experience to define different price points which are generally based on competitors pricing and industry standards. As a result of this stage, client shall get range of price points with associated unique features required.
Mystery Audit for Pricing
This service is for franchisee based business, where the master company wants to keep track of third party owned franchisee. This can also be applied where the supply chain has more levels and the client want to keep track of retail price. This is also used to prevent pilferages and duplicate products. Mystery Audit is an audit to specific target sellers/marketers and meet them as a customer to understand current pricing, service level and offering. Retail audit is more famous, where this can also be used to collect other information such as availability, quality of sales people, competitive pricing, geography wise pricing, standard signage and point of purchase etc.
Price advantage & opportunity
KMRC help their client by identifying cheaper resources, innovation in cost cutting, opportunity in trading or arbitrage, import/export opportunity, government benefits and other important aspect which enable client to reduce cost and make pricing as one of the tool for competitive advantage. Many times there are gaps in market related to price, where a set of price points would not be available in competition, by filling this kind of gaps open new opportunity to increase business.