Pricing Optimization


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:

  1. Basic Business Issues – address pricing on key current sizing, especially on key promoted price groups.
  2. Moderate Span of Issues – address pack differences across channels and appropriate sizes for each.
  3. 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.

Pricing Optimization


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:
Pricing Optimization

  1. We assess current value proposition.
  2. We build the hypothesis for change.
  3. We analyze/validate leading options.
  4. We build a plan for the DVP (desired value proposition).
  5. We systematize an approach to KPIs and compliance to support implementation.