Driving Success: How a Safety Focus and Smart Pricing Doubled Sales

Situation

The company, a well-known car electronics supplier, was launching a dashcam, a new family of products in, at that time, a new product category.

The challenge

With no prior experience from the dashcam market and with no competition, the company's CEO felt they did not have a solid understanding to develop a go-to-market strategy that would guarantee a successful introduction of the new products in this new product category.

Findings

Several surprising data points were discovered:

• Females have a 25-30% higher willingness to pay than males, and they buy for different reasons than males; they want much more from the product than men do, such as a product that does not obstruct the view, that includes a night vision feature, and where the video quality is high enough to identify people.

• Demand for the product is maximized at $125; however, demand above peak demand is inelastic, leading to a revenue maximization point of $500.

Results

The company decided to focus its marketing towards a female audience with a message related to safety as the features females specifically appreciate when related to their personal safety.

The price was set at $199, which gave the company a good compromise between demand (sales volume) and margin.

Sales volume in the 12 months after the product launch came in at twice the projected amount.