A comprehensive analysis of the optimal pricing strategy for MG Motors' 'Aura' sedan, taking into account production costs, market competition, and demand variability. This project aims to provide data-driven insights to assist in setting the most competitive price point for the 'Aura' sedan.
A simulation project for the course Uncertainty and Risk Modeling (70-462) at Carnegie Mellon University. This analysis is conducted as part of a strategic initiative for MG Motors to introduce the 'Aura' sedan to the market. The urgency of the situation, coupled with the absence of hybrid or electric options, necessitates a focused approach. The project employs Monte-Carlo simulation in R to maximize Net Present Value (NPV) over a six-year period.
The recommended price point of approximately $27,900 USD is determined through rigorous simulations. This price strikes a balance between profitability and market demand. The project also includes visualizations and projections to aid in decision-making.
Fall 2023