Boosting profit while reducing complexity for a major automotive manufacturer

Business Issue

A major automotive manufacturer was 48 months out from bringing a new vehicle to market within an ultra-competitive segment. With more than 60 optional features, the program team was challenged to deliver an offering that would maximize customer appeal, minimize complexity and carve out a niche within this segment.

What We Did

We partnered with our client’s program team to conduct complexity management research using our proprietary Strategic Optimization of Complex Offerings (SOCO™) methodology. We showed consumers a base vehicle with its content and starting price, and then asked them to build their ideal vehicle within their budget. We also ran feature price sensitivity and brand-price trade-off exercises.

Result

Escalent recommended a product lineup that increased appeal from the program team’s pre-research offering by 30 percentage points and increased potential profit by $260 per vehicle sold, all while keeping complexity to fewer than 75 combinations.

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