What is it about?
Approach helping to use pricing tool with the maximum effectiveness for your business. It helps to develop the optimal pricing strategy in order to reach your objectives (supporting the brand image, value maximization, increasing sales, etc.). The approach also allows for conducting the constrained price optimization (introducing multiple constraints during the optimization; e.g., predefine feasible price ratios among SKUs in the portfolio, maximize value while restricting acceptable decline in volume, etc.)
Possible levels of analyses: market, segment, brand, SKU
What do you get?
Price Elasticity
- How sensitive is the market / brand to price? How has the price sensitivity changed and will change in the future?
- What are the short-term and long-term effects from price changes in the market or for different brands?
Pricing scenarios
- What will be the outcome of different pricing scenarios on sales volume and value?
Price Competition
- What are my key price competitors?
- How does the pricing policy of my competitors affect my sales?
- From which brands will consumers come or to which brands will they switch in case I change prices?
Discount Analysis
- What is the short-term effect of discounts (impact on sales)?
- How do price discounts affect the brand image in the long-run?
- How often and when should price discounts be introduced?
Price Optimization
- What are the optimal relative prices for brands in my portfolio?
- What is the optimal relative price for my brand vs. key competitors?
- How prices should be changed during a year in order to maximize annual sales?
- How to maximize value allowing for only minimal drop in volume?
How this might look
