Adjusting Pricing Strategy with Yellow Tokens to Increase Competitiveness in the Sunglasses Market
Scenario
A company specializing in high-quality sunglasses was facing challenges with the acceptance of a new line of premium products. Although the sunglasses offered innovative design, advanced UV protection, and high-quality materials, consumers were hesitant about the higher price, resulting in sales below expectations. The Product Management team recognized the need to better understand how customers perceived the value of the sunglasses and how they compared to competitors' offerings in the market.
Problem
The main challenge for the company was to adjust its pricing strategy to make the sunglasses more competitive without compromising profit margins. Traditional market research approaches did not provide a clear view of consumer perceptions, and feedback from sales teams failed to capture the nuances of the market and the reasons for customers' hesitance to pay the premium price.
How Yellow Tokens Helped Through Understanding Customer Feedback
To address this challenge, the product management team used the Yellow Tokens platform to collect and analyze customer feedback, configuring it to gather comments and reviews about sunglasses from both competing brands and the company itself.
With Yellow Tokens, the team was able to:
- Collect Customer Feedback on Products and Prices: the tool automatically gathered feedback from customers about the new line of sunglasses, including perceptions of price, quality, design, and comparisons with competing products.
- Analyze Value Perception and Competitor Comparisons: detailed analysis of the feedback revealed that many consumers found the price of the new sunglasses line high compared to competitors, despite acknowledging superior quality. A gap in communication about the additional benefits justifying the premium price, such as durability, advanced UV protection, and unique design, was identified.
- Identify Opportunities to Adjust Pricing Strategy: Yellow Tokens highlighted the need to better communicate the product benefits, such as scratch-resistant materials, polarized lenses, and comprehensive UV protection. The tool also suggested creating promotional campaigns that offered bundled sunglasses with complementary accessories, increasing perceived value.
- Generate Action Plans to Improve Product Acceptance: based on the insights collected, Yellow Tokens generated detailed action plans to adjust pricing strategy and reposition the product in the market, including marketing campaigns focused on the unique benefits and innovative design of the sunglasses.
How Yellow Tokens Elevated the Role of Product Management
The implementation of Yellow Tokens transformed the approach of the Product Management team, enabling a more informed and customer-centric strategy:
- Informed Pricing Decisions: with real-time consumer data, the Product Management team was able to adjust the pricing strategy to better reflect customer value perception and enhance the competitiveness of the sunglasses.
- Improved Value Communication: the insights allowed the team to develop more effective marketing campaigns that highlighted the benefits justifying the premium price, differentiating the brand in the optical market.
- Increased Strategic Relevance of the Product Team: by providing clear and actionable insights, the Product Management team was able to directly influence strategic decisions within the company, improving product acceptance and performance in the market.
Results Achieved After Using Yellow Tokens
After implementing Yellow Tokens, the sunglasses company observed significant improvements in product acceptance and sales performance:
- 35% Increase in Sales of the New Sunglasses Line: with the adjusted pricing strategy and clearer value communication, sales of the new line of premium sunglasses increased significantly.
- Improvement in Customer Value Perception: customer feedback showed greater understanding and appreciation of the unique benefits of the products, resulting in a more positive value perception.
- 50% Reduction in Price Complaints: with better communication about the product value and more attractive promotional offers, complaints about prices decreased significantly.
Yellow Tokens became an essential tool for the Product Management team, enabling quick and informed adjustments to product and pricing strategies, and improving the company's competitiveness in the sunglasses market.
