Plan Pricing Strategies Quickly and Accurately
TODAY'S PRICING CHALLENGES
The competitor landscape is constantly changing, more than ever brands and retailers are competing among each other to gain market share. Consequently, account teams need to continuously adapt their retail pricing and promotion strategies or risk losing revenue.
Swiss consumers are increasingly price-conscious shoppers, in 2017, 52% of Swiss consumers claimed they know the prices of grocery items, in 2015 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.
Despite the importance of pricing to Swiss consumers, did you know that 1 out of 3 price decisions fail to yield the best price?
Everyday Pricing Analytics
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.
However, category benchmarks only provide a guideline. 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 regular price increase due to the low regular price sensitivity.
Interested in the right pricing strategy for your individual portfolio? Contact us to understand the role of pricing for your whole portfolio and category, available within two weeks with our Everyday Pricing Analytics.