Our client, a major American heavy construction equipment provider, aimed to understand their conservative Japanese competitor's unprecedented 8-10% price increase in Japan. They sought insights into the motivation, its impact on dealers, and potential strategies for other markets, especially the Middle East.
Using public data and in-depth interviews with third-party analysts, channel partners, and competitor employees, we gathered essential information on the pricing action:
- Timing and nature of the price increase
- Whether it was a one-time adjustment
- Key drivers behind the pricing action
- Uniform application across product segments, like excavators, wheel loaders, track-type tractors, and motor graders
- Impact on dealers, including communication timing, room for negotiation, and dealer support during the price adjustment
Additionally, we assessed the competitor's strategies in other geographies, understanding potential variations between Japan and EMEA, particularly the Middle East. We analyzed price actions across construction equipment categories and evaluated the support provided to dealers.
Our comprehensive competitor intelligence provided invaluable insights into the pricing strategy in Japan and EMEA. With our decision support, our client optimized cost rationalization, pricing strategy, and dealer support systems, gaining a competitive edge across markets. By addressing customer needs, they successfully enhanced their market position and achieved strategic goals.