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Strategic Automotive Pricing Master Class

Did you know that price is by far the most important profit lever, more important than cost? So what are you doing to optimise your pricing and secure/improve profits? Most OEMs and suppliers believe pricing is about looking at cost and what competition is doing. But this perspective is far too limited. If Porsche would apply cost-plus pricing they would sell their ceramic brake system for $3,000 not $12,000 – and would sacrifice $9,000 pure profit per unit…

The automotive industry is facing massive challenges and too often neglects pricing as a measure to address them:

• Demand in mature markets is slowing down – is this reflected in the price strategies?
• Traditional business models are disrupted by new forms of vehicle use and ownership (e.g. car sharing or Uber) – what does that mean for OEMs and suppliers?
• Model ranges get more and more complex while up-sell is getting harder – how can that be better managed?
• Model and trim decisions are often production efficiency driven – how does that align with customer needs and expectations?
• Models have more and more specs / extras included – how does that impact profitability?
• High margin businesses like aftermarket and service experience increasing price pressure – why is this happening?
• Many markets are in fierce promotion pricing competition – are the applied promotional offers as efficient as they should be?
• The sheer volume of parts leads to undifferentiated aftermarket / parts pricing – how can that be improved?

Conclusion:

Pricing is much more than price level – it includes the definition of the right price strategy, the identification of the best propositions, the optimising of the model portfolio and option bundle design, the value-based price level optimisation as well as the feasible price implementation and communication.

Your Key Benefits:

This Master Class will provide in-depth insights into the importance of pricing in the automotive industry, provide pragmatic advice how to improve pricing and apply cases and group works to turn theory into practice.

• Structured approach to get insights on all areas of pricing
• External experts’ view on your pricing excellence
• Numerous best practices and cases from around the world
• 12 hours of sparring for all your pricing questions
• Models have more and more specs / extras included – how does that impact profitability?
• Comprehensive improvement / freshening up of pricing know-how
• Sound understanding of pricing research and price setting methodology

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791

Welcome and Introduction

Understanding pricing basics

• Why is pricing so important for success?
• Understanding basic pricing mechanics
• Price elasticity exercise

Getting the price strategy right

• Why do you need a price strategy?
• Giving clear directions
• Knowing your market position
• Group work: Develop Matrix of competitive advantages
• Phrasing an effective price strategy
• Knowing how to deal with competitive price pressure
• Group work: Price War game

Optimising the product / model line-up

• Why is the line-up important?
• Understanding portfolio effects and behavioural economics
• Deciding on standard and optional features (Bundling)

Optimising the product / vehicle price level

• Why is price level optimisation important?
• Selecting the right price setting approach
• Applying the right pricing research to assess willingness-to-pay
• Group work: Price-Response function expert judgement

Optimising the product / vehicle price level (cont.)

• Modelling a comprehensive market simulation
• Group work: Simulating optimal prices based on conjoint results
• Upselling with options and extras
• Assessing the value of features and options
• Balancing base sales and up-sell

Not losing on price promotions

• Why is promotional efficiency important?
• Getting the promotion mix right
• Forecasting promotional efficiency

Getting price communication right

• Why is price communication important?
• Reaching customers with the right communication
• Group work: Develop new price communication

Extracting value from aftermarket pricing

• Why is aftermarket pricing so important?
• Optimising prices for tens of thousands of products

Aligning sales and dealer incentives to price strategy

• Why is alignment of incentives important?
• Matching incentives to internal goals

Wrap up and Q&A

Programme Schedule

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791

Chris (Christoph) Petzoldt

• Partner & Managing Director Oceania, Simon-Kucher & Partners
• Focus: Pricing Strategy, Portfolio & Price Optimization, Pricing Simulations
• Chris has successfully conducted more than 100 pricing-consulting-projects in more than 18 countries for clients including BMW, Porsche, Volkswagen, Komatsu, Ashdown Ingram and others

Chris is Partner and Managing Director Oceania at the global pricing consulting firm
Simon-Kucher & Partners Strategy and Marketing Consultants. In addition he is responsible for Simon-Kucher’s APAC automotive business.

Chris has 16 years of consulting experience as a project manager. He specializes in strategic pricing, proposition & portfolio design, price optimisation as well as
market simulations. He has conducted more than 100 consulting-projects in more
than 18 countries.

Chris studied business administration at the University of Kiel and at the School of Business and Commercial Law Gothenburg, Sweden. He majored in Innovation Management and Marketing and received Diplom-Kaufmann degree (equivalent to Master) in 2000.

Why Simon-Kucher as Trainer
Read more

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791

Who Should Attend:

Industries:

• Automotive / commercial vehicle manufacturers (OEM)
• Car / commercial vehicle importers / distributors
• Dealer groups
• Suppliers to the sector

Typical functions:

• Pricing
• Product managers
• Sales
• Aftermarket
• Marketing

Typical levels:

• Executives responsible for profit performance
• VP/SVP sales / marketing
• GM/EGM sales / marketing

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791

This Strategic Automotive Pricing Master Class will give you….

• an aggregated view on what pricing steps need to be examined to achieve pricing excellence
• an overview on state-of-the-art price optimization tools and methods
• insights on how to achieve an optimal price strategy
• hints how to optimize price communication and implementation
• insights into automotive pricing success factors demonstrated by dozens of success cases from around the world
• the benefit of hands-on group works, discussions and first ideas based on your specific products and pricing challenges

Pre-course Questionnaire

A pre-course questionnaire will be sent to you upon your registration which will allows you to raise your specific areas of interest. Chris will review and analyze these in advance and address them during the workshops, seeking to fully satisfy your learning needs.

Certificate of Attendance

Upon the successful completion of this course, you will receive a Certificate of Attendance bearing the signatures from both the Trainer and the Organizer. This Certificate will testify your endeavour and serve towards your professional advancement.

Testimonials

“The workshop was one of the most exciting workshops I’ve ever attended”
- Delegate from France

“A good course – recommended for all product and marketing managers!”
- Delegate from Singapore

“The masterclass contains really very practical information and would be very helpful for me and my colleagues”
- Delegate from Russia

“Especially in the aftermarket space with thousands of parts it was good to see that pricing can be automated!”
- Delegate from Korea

“It was an excellent introduction to the pricing area. I believe I am now equipped with some very specific things to do and not do in my area of responsibility”
- Delegate from Indonesia

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791

We recommend our delegates to book the hotel rooms early as there are only limited rooms available at Corporate Rate. Kindly contact the following for reservation. Please quote Automotive Pricing Master Class when you book to enjoy the Corporate Rate.

Novotel Kuala Lumpur City Centre, Malaysia
2 Jalan Kia Peng 50450,
Kuala Lumpur – MALAYSIA
Ron Lee
Events Manager
Tel: +60 (3) 2147 0888
Fax: +60 (3) 2147 0820
Email: h6324-sl5@accor.com;h6324@accor.com

For a copy of the FULL AGENDA, please send email to: hayat@neo-edge.com
Or please call us at Tel: +65 6848 7791