Client Segment:
A leading manufacturer in the tiles industry aiming to refine pricing strategies and enhance market positioning.

Methods:
Research Design: Developed a comprehensive market study incorporating both qualitative and quantitative research methods to assess competitor pricing and consumer perceptions.

Data Collection: Mystery Audits: Conducted mystery audits across multiple retail outlets to gather real-time pricing data and observe competitor strategies in action. This approach provided insights into how products were presented and priced in the retail environment.
Surveys and Interviews: Engaged with consumers and retailers to collect qualitative feedback on perceived value and pricing expectations for premium tiles.

Analysis: Utilized Van Westendorp’s Price Sensitivity Meter to determine acceptable price ranges for the client’s premium tiles. This method helped identify the optimum price point and thresholds for price sensitivity among target consumers.
Analyzed the collected data to compare the client’s pricing against competitors, focusing on the implications of pricing strategies on market positioning and consumer perceptions.

Findings:
The research revealed significant discrepancies in pricing for premium tile products, with some competitors pricing their offerings lower than expected, risking the perceived value of the client’s premium tiles. Insights from the Van Westendorp analysis indicated acceptable price ranges that supported a potential price increase for the client’s products.

Solution:
Based on the findings, the client implemented a revised pricing strategy that involved increasing prices for specific premium tiles to align with consumer expectations and competitor pricing structures. The adjustments reinforced the premium positioning of the tiles, enhancing brand perception and competitive advantage in the market.