SCG conducted a three-phase project to help EquipmentCo. identify a rationale for pricing the new product:
Phase 1 – Price range of hardware in the selected geographies
SCG’s on-demand workforce initiated the project by segmenting the existing product suite into its components namely hardware and software. During this phase, it was also focused on the hardware components and the capability each component provided to the overall product. Based on this the team then used historical transactions to create scatter plots of sales price of the hardware in various product configurations in each market.
Phase 2 – Price range of software in the selected geographies
During this phase SCG's agile workforce focused on segmenting the software bundles and repeated the same process for each geography. Historical transactions were used to create scatter plots between software units sold and sale prices to identify the price range of top 3-5 software bundles/licenses with the highest volume/price sold. Also, insights were derived regarding the price perception of softwares in each geographic area. Finally, SCG's agile workforce was able to identify which product configuration was using which product bundles at what price.
Phase 3 – Develop a price range tool
After identifying the price range of existing product components an excel-based tool was built. This excel tool enabled EquipmentCo. to predict the price range of the new product, based on identified parameters with allotted weightage for each individual component. This allowed EquipmentCo. to select a country and specific configuration and derive the price range. Additionally, it allowed additions of any new country data into the tool and derive the price range for that country.