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Plan Pricing Strategies Quickly And Accurately

FMCG and Retail | 18-12-2018
Sarah Fuhrmann


The competitor landscape is constantly changing. More than ever brands and retailers are competing amongst each other to gain market share. Consequently, account teams need to continuously adapt their retail pricing and promotion strategies or risk losing revenue.

That being said, Swiss consumers are increasingly price-conscious shoppers. In 2017, 52% of Swiss consumers claimed they knew the prices of grocery items, up from 2015 when it was 49%. Moreover, as a reaction to increasing grocery prices, Swiss consumers primarily buy products on price-offs, cut down on luxuries and switch to cheaper brands.

Nevertheless, despite the increasing importance of pricing to Swiss consumers, one out of three price strategies fail to yield the best price.


Understanding your products’ regular and promotional price elasticities is critical to identifying the optimal pricing strategy. Chocolate is an example of a category where the price fighter strategy works best as Swiss consumers have a strong reaction to both regular price changes and price-offs.

Optimal Pricing Strategy 1

However, category benchmarks only provide a guideline. The real strategy exists at the product level.

When looking at the price elasticities of the largest 150 chocolate products in terms of sales value, it is clear that the ‘price fighter strategy’ could in fact be counterproductive for many individual products. While the Price Fighter strategy recommends adopting a defensive pricing strategy where regular price increases should be avoided due to the high regular price elasticity, chocolate products which fall in the High-No Strategy may in fact gain sales value through a shelf price increase due to the low regular price sensitivity.

Optimal Pricing Strategy 2

Interested in the right pricing strategy for your individual product portfolio? Contact your Sales Representative or CS Online.


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