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The client were interested in establishing a detailed understanding of their product and pricing position in the UK market. This review formed part of their planning programme as they were seeking to introduce an annual price increase, the review therefore provided a sound basis of information for decisions pertaining to the price changes.

The review consisted of a comparison of 32 different companies and ranges, with 3 different product areas. The overall number of products for comparison was over 100, with product features, price levels and options reviewed on each.

2. OBJECTIVES

The objectives were as follows:

• To construct product 'baskets' encompassing value statements for the client and direct competitors products, taking into account the criteria indicated (eg functionality, quality, aesthetics, flexibility, finish options, re-configurability etc).
• To assess each of the stated product types and their relative value in comparison to the client’s equivalent products.
• To obtain price quotations for each of the relevant products.
• To compare prices and products with the client’s relevant product.
• Research price point information in different forms, basic product, more advanced product and technically superior product.
• To undertake a competitive review assessing key data as follows, including number of employees, turnover, profit, approach to market, service levels, enquiry response rates, lead times, structure of product ranges, views on trends etc.

3. METHODOLOGY

There were several key steps to obtaining brochures, quotations and general company information:

• Obtain relevant literature via the distribution channels or direct from the manufacturer.
• Review the latest literature and determine the appropriate product to use for price comparison).
• Visit relevant showrooms or distribution outlets to review the product, assess the reception, sales approach and product quality in more detail.
• Design appropriate basket of products and request quotations (with relevant discounts) from each of the manufacturers or distributors as appropriate.
• Review desk sources to provide certain competitor data.
• Interview designated competitors to obtain background data.
• Collate the information and present on a product group basis.

While the methodology was relatively straightforward, the research took some time, as we were dealing with a large number of products, we had to gather a large number of quotes and some supplying companies took a long time to supply the quotes and the product comparison had to be undertaken very carefully as invariably there were a number of feature differences between products where prices were being directly compared.

4. LOGISTICS

A project such as this could take quite some time to complete. This particular project took 8 to 10 weeks, though there were a lot of products to compare and a number of companies and we had to rely on them providing formal quotations.

The time frame therefore depends on the type of product and the nature of the quotations we are required to gather.

The cost of these type of projects can vary enormously depending on the needs of the client, the product range, the degree of complexity of the product, number of features, functionality, application areas, installation issues etc. This particular project had a cost of around £15000, though as previously indicated this covered a wide range of competitors and product areas.

We always seek to provide a quote which is fixed, assuming the basic project objectives remain unchanged. However, in some cases, the situation is more complex and it can be impossible to provide a fixed quote, for example where we are required to buy other research information and at the commencement of the project we are uncertain as to the ultimate cost to us.

5. OUTCOMES

The output of the project was a range of product price and feature comparisons. The client was able to look at average prices for the individual competitor by way of a basket of a range of products, or they were able to compare on the basis of product lines.

This enabled the client to understand their position in the market in terms of product positioning, by features, functionality and price.