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    Case Studies

    Optimizing the Feature Bundling and Pricing Strategy of the Portfolio

    Problem: A security protection company wanted to develop a premium offering in an effort to attract new customers, as well as move current customers up the line from lesser-value products to this new offering. With an initial threshold of price in mind, the client wanted to test its assumptions and develop the most sound option for the marketplace.

    Solution: MSI fielded a consumer choice study that allowed us to model the effects of alternative feature combinations and pricing strategies. A simulator was developed using integrated financial data on both the sales and cost of goods. The simulator allowed the company to look at both the volume and margin outcomes of alternative feature and pricing configurations.

    Results: The company was able to introduce the premium product at a higher price than originally hypothesized. Six months after the premium product introduction, the client reported that the product distribution was exactly as predicted. The client was able to generate significant new revenue based on the insights provided by MSI.
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