Lowering The Price For A Premium Alcohol Brand

The Indian entity of the client wanted to lower the price of its flagship liqueur brand. With the industry being extremely regulated, the client wanted to conduct a market study to make a case for price reduction.

KEY QUESTIONS

  • What is the profile of the aperitif’s direct consumers? What is their willingness to pay for the brand?
  • What is the usage at bars, pubs and restaurants? How do retailers react to the brand’s pricing?
  • How does the brand’s pricing compare against key competition (e.g., whiskey in Indian context) at the various points of sales?

APPROACH

  • Customer: Van Westendorp Price Sensitivity Meter
  • Supply: Retailers, pubs and bars selling the brand
  • Competitive benchmarking: duty free and retail

RESULT

  • RedCore identified in between the project execution that the original research scope would not be able to fulfil the client’s agenda. The approach was pivoted in between to increase the focus on Supply side and Competitive Benchmarking
  • RedCore prepared a report that the client leveraged to reduce the market prices