The pandemic has impacted demand, cost and supply across many industries and with the 2021 Pricing Agenda top of mind, what do you and your clients need to know before resetting pricing strategies? What are the latest trends in the area of pricing and sales that you should definitely be aware of?In this 60 minutes strategic update, invited pricing research experts discuss the latest movements and improvements in this field including new paradigms, perspectives, tools and technology. In this short session we take a tour d'horizon touching on topics like Behavioral Pricing, subscription model, research methods, data-driven and AI-based pricing.
How holistic is your approach to making decisions on the most important marketing lever?
Getting the right pricing strategy is very critical for CPG companies - more so in the alcoholic beverages (AlcoBev) category in India, because AlcoBev is a highly regulated industry subject to high taxes coupled with restrictions on distribution and mass media communications. This renders it very price sensitive and highly competitive. At Diageo India, we have developed an integrated brand pricing framework that encompasses the following dimensions: (i) consumers' current sensitivity to brand price; (ii) behavioural equity measure (total $ value that is the sum of functional and emotional benefits provided to the consumer by the brand, over and above price); and (iii) drivers of equity. This holistic framework enables maneuvering pricing in the market for the short-term while getting the right balance between price and total brand value, as perceived by consumers in the longer run and also driving actionability in terms of building up equity.
Inspired by Boston Consulting Group's 2016 report on 'Rewiring Customer Insight to Generate Growth', the Philip Morris International team in The Philippines took a journey to amplify the value of the insights function. In this paper we would like to share our journey towards that goal, the steps we undertook and its impact. We would first talk about what broad organizational level changes we underwent to enable the journey and then we will also demonstrate its impact by discussing a specific business issue in broad strokes.
The automotive market in India has become crowded over the years. Global giants have raised the bar. Indian brands are under pressure to offer better technology and feature-rich vehicles to match global standards. The business challenge was to identify which features would be profitable to launch in India and work out the optimal configurations at prices which would aid in single market share profitably. We devised a new pricing research technique that would replicate the real-life evaluation process of 100+ features, while keeping the uninterested and impatient Indian consumers engaged. The result was a 3D virtual showroom that has not only helped us to recommend the optimal price product portfolio, but has the versatility of application across other industry sectors too.
The automotive market in India has become crowded over the years. Global giants have raised the bar. Indian brands are under pressure to offer better technology and feature-rich vehicles to match global standards. The business challenge was to identify which features would be profitable to launch in India and work out the optimal configurations at prices which would aid in single market share profitably. We devised a new pricing research technique that would replicate the real-life evaluation process of 100+ features, while keeping the uninterested and impatient Indian consumers engaged. The result was a 3D virtual showroom that has not only helped us to recommend the optimal price product portfolio, but has the versatility of application across other industry sectors too.
The brain processes the act of purchasing in the same region that it processes the experience of pain. It does in fact, from a brain science perspective, 'hurt' to hand over money in a transaction. At NeuroFocus, we have done a good deal of research into pricing, and the subconscious dynamics that we all undergo during the purchase decision process. We have uncovered a fascinating and unexpected phenomenon, 'little moments of luxury', which has led to the development of the Luxury Perceptual Framework.
Price optimisation is the most efficient lever to maximize profits but all classical price research tools fail to deliver optimal results as they still assume consumers to behave like a 'Homo Oeconomicus'. Using several examples, this paper will highlight the shortcomings of classical tools like conjoint analysis or PSM and develop an open source pricing research framework the 'Psychological Price Profile' that helps to broaden the research scope while still leveraging the advantages of the classical tools. Moreover, this paper will present the core results of a multi-national study involving 16 countries and 10 product categories.