Submitted by:

Nandita Singh (1)

Natasha Batra (2)
Neha Gulati (4)
Mrinal Manna (40)
Nikhil Singh (47)
Pranay Vijay Kapoor (56)
Table assessing Price and Value
Competitiveness
Importance Quality A B C X

35% Precision 6 5 4 6

25% Reliability 6 6 3 4

15% Durability 5 3 2 5

20% Service 5 3 5 1

5% Delivery 2 5 5 5
Comparative Analysis
Weighted A B C X
Score

5.5 4.6 3.7 4.3

Actual Prices

29,000 Rs 21,000 Rs 15,000 Rs 22,000 Rs

Market Share
% 27 45 20 8
1a. Where is X positioned?
Market Share
In terms of market share , X is positioned below all A , B and C but
in segments X has confused positing.
50
A falls in premium segment
B in economy segment 40
C in mass market segment
30

20

10

0
A B C X
Market Share 27 45 20 8
(%)
Price
•The position of various competitors when compared in price range
offered is shown in the graph below.
•It can be seen that B and X are more or less at the same level, A is
priced highest and C is the lowest . Hence X is, as per pricing, in the
economy segment.

30000

25000
20000
15000
10000

5000
0
A B C X
Price( Rs.) 29000 21000 15000 22000
 Weighted Sector Parameter

• On the weighted sector parameter, A is one the highest i.e. it provides

the best quality product
• B and X are at the similar levels
• C is at the lowest. 6
5
4
3
2
1
0
A B C X
Weighted 5.5 4.6 3.7 4.3
sector
1b. What are X’s strong points or weak
points?

The strong aspects of X are its quality ratings on every parameter

except for service and to some extent the reliability.

X has not positioned itself well and has confused positing since it is not
playing on it’s strength of precision.

Another weakness is that competitors already claim a huge share in the

market and are positioned well, in terms of quality parameters.
1c. What are the positions of A, B, C ?

A is in the high price segment where the market is not very

price sensitive where customer is extremely quality
conscious and demands great service.

B is in the middle price segment with high market share and

high quality consciousness.

C is in the low price segment which is not quality conscious

but is very price sensitive.
 2. How do you enhance the market
share of X and what are the various
alternative activities to ensure that?

Increase the quality ratings on Service (from 1 to 4 or

more) and Reliability (from 4 to 6), benchmarking A’s
Standard.

Compete with B using similar tactics.

Build up on reliability and service sectors as they

together hold 45% of the importance weightage and
customers in the same segment as A want good post
sales services along with high quality.
Continued…
Also, X should increase its price (but keep it just
below A) so that the high price segment can be
targeted. Once it establishes its position that’s
when it can look at a price restructure.

It should position itself by leveraging its precision

standards. It can also successfully differentiate
itself with its high delivery standards.
Continued…
It can re-brand its product so that customer perception of failure of this
brand does not become a hindrance in its positioning.
It can re-invigorate the brand with a new marketing and advertising
campaign.
Restructuring & reorganizing the sales team.
 Consumer Derived Value

Old customer derived value of X

4.3/22 = 0.195
Customer Derived Value of A
5.5/29 = 0.189

If we increase Service points from 1 to 4 then weighted score for will be 4.3
+ (3x0.2) = 4.9
If we increase Reliability points from 4 to 6 then the weighted score for X
will now be 4.9 + (2x0.25) = 5.4

So now new customer derived value is 0.245

Graphical Analysis

Price (Rs.)
Weighted
sector
(points)
 Pricing
To become even more competitive we must now look at decreasing our
price to make inroads into the market share of A

So instead of price 22,000 Rs we can now Price it at 27,000 Rs which

means that even though the positing will now be in the high price
category, there will be competitiveness in price.

Hence now our Customer Derived Value is 5.4/27 = 0.200

This means the Customer Derived Value for X will be higher than A in
the same category
 Consumer Derived Value

0.3
Consumer Derived Value

0.25
B
A
0.2
B
C
0.15
X

0.1 X2
Xfinal
0.05

0
The Products
3. What is the Best Alternate and Why?

The best alternative would be, to work on the service

criteria and the reliability of the product.
X should not compete in any segment apart form the
upper segment where it must be placed and should
compete with A.
We suggest X to outsource the servicing of the
product to an established service provider and
leverage the brand image of the service provider
rather than investing into service on your own. Also it
can advertise this fact to its customers to let them
know of this.
Continued..
• Repositioning into the high precision segment and
removing the ambiguity in positioning.
• Competitive pricing to become appealing to the market
share of A.
• Re-brand the product.
THANK YOU