Case study: Automotive price tracking – Passenger car tire price tracking study in Singapore and Korea

The challenge

A leading global manufacturer and distributor of rubber products saw a decline in sales of its passenger car tires in Singapore and Korea. An internal discussion led to the conclusion that pricing was the root of the problem – competitors were simply more aggressive in their pricing strategies.

To increase its market share, the client sought to benchmark the prices of its competitors’ products that were targeted at various customer segments in Singapore and Korea. 

The objectives of the study were to understand how the competitors positioned their products in the relevant markets and devise a counter-strategy.

The process
Spire was tasked with the screening and recommending of suitable models and local retailers of passenger car tires for price research. Once the final candidates were selected by our client, our consultants executed mystery shopping and retail observations to identify the prices, specifications and promotions of both our client’s and competitors’ products in the local markets. Simultaneously, secondary research was undertaken to identify general market trends.

The results
Spire delivered the key findings and recommendations to our client in a face-to-face presentation.

Our results served as important inputs to support our client’s country offices in their tactical pricing adjustments.

Project deliverables included:

Information on the pricing and specification of the tire stock-keeping units (SKUs)
Reports that address the recent market situation and other information related to the tire models tracked, such as customers’ perception and market share.