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Pricing Optimization
Guide manufacturer through pack types, pack size, and pack price decisions – with a view to optimize price & profitability while managing channel conflict. We see 3 levels of price architecture decisions:
- Basic Business Issues – address pricing on key current sizing, especially on key promoted price groups.
- Moderate Span of Issues – address pack differences across channels and appropriate sizes for each.
- Marketplace Interruption Issues – introduce consideration of changes (add, adjust, or delete) to packs to allow brands to re-position or fix channel conflict/profitability issues.
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What We Do
We use a 5-step process to identify potential changes to pricing/channel strategies, validate the best options, and ensure effective implementation/compliance:
- We assess current value proposition.
- We build the hypothesis for change.
- We analyze/validate leading options.
- We build a plan for the DVP (desired value proposition).
- We systematize an approach to KPIs and compliance to support implementation.