Summary
A leading hearing aid manufacturer approached Evalueserve to help create its go-to-market (GTM) strategy by understanding the price positioning / profit margins and commercial channel strategies for selected hearing aid models offered by two of its competitors.
Evalueserve provided the client with a comprehensive strategy report that enabled it to gain detailed insights on the competitors’ market strategy and pricing landscape. This helped the client to take informed decisions and effectively position its products in the market.
The Challenge
The client sought to optimize the price positioning of its products to maximize their adoption in the audiology industry. Due to a lack of accurate information on hearing aid pricing and bundling options on secondary / public sources, the client requested Evalueserve to gather this information using primary research across the audiology network (e.g., through cold calls to retailers, interviews with audiologists, and discussions with key opinion leaders). The client intended to use this data to make informed GTM decisions, refine pricing strategies, and effectively compete in the market.
Our Solution
Evalueserve designed a solution for the client based on secondary research and structured primary calls and interviews with audiology centers and industry experts.
Primary Market Research (PMR)
Evalueserve conducted extensive PMR to understand the selected hearing aid models through the following methods:
- Contacting industry experts to understand manufacturing and retail prices, margins across the healthcare ecosystem, market trends, and the impact of inflation
- Speaking to senior audiologists to know more about end-user bundled prices, services, and margins at point of sales
- Conducting primary calling to learn about pricing and services offered by audiology centers and corporate stores
Based on this detailed PMR analysis, Evalueserve provided sentiment analysis that covered the positive and negative sentiments of customers, including wholesalers, retailers, and audiologists
Data Analytics and Pricing Models
Evalueserve created an excel-based competitive pricing analysis model that covered the 50+ hearing aid models in the project scope. The model was based on the insights generated from secondary research and primary interviews. Here are the highlights of the model:
- Provided key competitor highlights, including advanced features offered in each model and professional services available at corporate stores, audiology centers, hearing clinics / networks, independent stores, and franchises
- Provided insights on pricing outcome and geography, including – but not limited to – percentage price difference for end users across various regions in the US and a comparative analysis of hearing aid models based on standard and premium technology
Channel Strategy
Evalueserve assisted the client in establishing its channel strategy by
- Assessing its current channel structure and pricing
- Benchmarking the competitors’ product availability, accessibility, visibility, and brand image via different channels
- Evaluating industry best practices
Recommendations
Evalueserve provided short- and long-term recommendations related to the market positioning strategy for the client. These recommendations considered the following aspects:
- The overall strategy of the competitors, including their growth / expansion strategy
- A deep dive into various aspect of the competitors’ strategy and performance parameters, such as product / model and geographical presence, current distribution model and network across the US (such as franchises, corporate stores, independent stores, and clinics), current pricing strategy and outlook, and penetration into and partnerships / alliances with new sales channels (e.g., digital channels / eCommerce)
Business Impact
Insights gathered from the competitive pricing landscape helped the client understand the key considerations for developing its GTM strategy and price positioning. As a result, the client was able to achieve the following goals:
- Optimized pricing strategy: Insights from expert consultations helped the client to optimize its hearing aid pricing strategies, based on market-specific dynamics. Understanding local pricing trends, competitor pricing strategies, and customer preferences enabled the client to set prices that were competitive, yet profitable. These strategic insights also enabled the client to understand and offer bundled prices, which was particularly advantageous in markets where competitors were not offering such comprehensive pricing packages.
- Higher market penetration: Market-specific insights from expert consultations allowed the client to tailor its GTM strategy to different regions. This targeted approach aided it in expanding its market penetration by addressing the unique needs and preferences of specific geographies.
- Competitive advantage: Access to expert insights on pricing dynamics, discounts, and rebate trends assisted the client to adapt to changing market conditions, allowing it to stay ahead of the competitors and make informed strategic decisions.
