Lux Rides
Practice this advanced pricing case interview question in the Manufacturing sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This is an unconventional, interviewee-led case testing pricing strategy in an emerging market with a luxury product. The candidate must navigate cost-based, competition-based, and value-based pricing approaches while dealing with limited comparable products. The brainstorming element and pressure-handling expectations make this particularly challenging.
Clarifying Information
- Objective - The objective of the client is to maximize revenue in first 2 years. We have to suggest an appropriate price for the luxury scooter to achieve this goal.
- Business - Lux Rides, manufactures 2-wheelers across the world and sells in countries with large 2-wheeler penetration. However, for Model Z, which is the luxury model, Lux Rides plans to manufacture the scooter in Italy and export it to Vietnam to control quality.
- Geography - The client is an Italian player but is looking to enter the Vietnam market. It has not introduced Model Z in any country yet.
- Competition - There are many competitors in the Vietnam 2-wheeler market but most of the players are lower-end players.
- Price benchmark - There is no price in mind and we would like to know your suggestions
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