ARP Motors, an automobile company, was struggling in the competitive SUV market in India. As a business strategist, you recommended that ARP launch…

The strategy recommended to ARP Motors is the Best-Cost Provider Strategy. Best-cost provider strategy is directed towards giving customers more value for their money by emphasizing both low cost and premium features. The objective is to keep costs and prices lower than those of other sellers of comparable products while offering better quality and superior features. Application in ARP Motors Case: Launch of FLEXON (Compact SUV): ARP priced FLEXON strategically at an affordable level, while at the same time incorporating premium features such as a 5-star Global NCAP safety rating, advanced technology and a modern design. This reflects the approach of offering better quality at lower or comparable prices. Introduction of FLEXON EV: By entering the electric vehicle market, ARP positioned FLEXON EV as one of the most affordable yet feature-rich electric SUVs in India. This aligns with the principle of charging lower prices for comparable products or offering higher quality for similar prices thereby giving customers more value for money.