Price Sensitivity Analysis
Setting the right price is a subject to consideration of many marketing aspect as price can impact many dimensions such as brand image, device usage/prescribing behavior of KOLs and payers perceptions
• How my markets respond to price adjustments? And what will be the impact on sales volume?
• How competitors will react on my product price change?
• Should I change my product price gradually or at once?
• How my price change will be perceived by different stake holders across the value chain?
MRA Group offers a complete analysis, enabling clients to explore the effects of price related decision on the market and competitors. We help to determine the price sensitivity of medical device product, and optimize price architecture.
MRA Group team utilizes a number of modeling tools, and analytical techniques on case to case basis.
How We Help?
• We provide excel based price sensitivity tool analysis to constantly monitor the impact of price change
• Prepare customized flexible input based analytical tool so the analysis can be performed by client as well
• Price Sensitivity Analysis: Price sensitivity measures the degree to which patients behaviors are affected by the price of the product. Price sensitivity analysis is measured by the following dimensions:
1. Cost Plus Analysis: Cost plus requires medical device companies to make regular adjustments as their costs increase. Some cost charges like R&D hike or marketing investments can, however, impact market participants in different ways thus forcing some companies to heave their prices more than the competitors.
2. Competitive Pricing: Competitive pricing is the second most common pricing strategy. This strategy involves setting prices on the basis of price set by the competitors. This approach can, however, be problematic if the pricing does not reflect imperative differences in what is being proffered. Moreover, this approach presumes the competition creates the most effective price for a product or service.
• Sensitivity analysis of customers behavior with the change in price of a medical device
• Competitive pricing adjustment to our clients existing and upcoming products
• Detailed understanding of consumer demand and product pricing in order to freeze product pricing
• Sensitivity analysis helps our clients to determine which parameters are the key drivers of impact.
• Enable client to make the best decision on whether to change price or not