Pricing & Promotion Strategies

Hitting the pricing sweet spot requires a detailed analysis of not only your competition, but also emerging economic and consumer trends.

One of the greatest challenges for any manufacturer or retailer is setting prices. Impacted by economic conditions, trends in label growth, and commodity cost fluctuations, pricing and sales strategies require in-depth and current knowledge of the market.

So what is the optimal price point for your products, and how will your customers respond to changes? How should you price a new product, or a product re-launch?  What’s the best way to promote your products during a price increase, and which promotions are the most effective?

How We Can Help

Nielsen optimizes your pricing and promotional strategy to align with brand and profit goals for your entire product portfolio. We work with you to predict how various pricing and promotion scenarios will impact sales and profits as well as the shopper’s perception of your brand.

How We Do It

Our comprehensive approach includes:

• Modeling price and promotion options, discerning optimal price to drive trial and repeat purchases, meeting volume and profit goals.
  
• Determining new and re-launched product pricing strategies to generate trial and respond to competition.
• Integrating retail and consumer research data to form a holistic picture of the market, and forecast future shifts.
• Assessing the impact on sales and profitability for manufacturers and retail partners, as well as price interactions between own portfolio.
• Analyzing pricing promotions, with clear recommendations for improvement and pack price optimization.
• Tracking market continuously to best respond to fluctuations and commodity cost changes.

Why Nielsen?

Nielsen can provide the knowledge of pricing landscape across more than 400 FMCG categories and experience evaluating the pricing strategies for thousands of brands. Products and services within our Pricing and Promotion practice group include analytic models and pricing strategies that take into account the brand and product evolution. 

Drawing on analytical models of historical store-month retail audit information, we offer specific tools for new launches, re-launches as well as established brands. More than 75% of clients repeat pricing evaluation with Nielsen on an annual basis to achieve consistent improvement.

Learn more about pricing & promotion strategies.