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Consumer Pricing and Promotions

Tech-enabled price transparency has made defining your pricing strategy and aligning it to your brand and value proposition more important than ever. We’ll help you build the pricing capabilities that today’s dynamic environment demands.

Consumer Pricing and Promotions

Today's price transparency—driven by apps and algorithms—makes it easy for customers to compare prices across retailers, informing their price perception. Meanwhile supply chain disruptions and inflation have driven costs higher. As a business leader, you face a daunting set of pricing and promotions questions with big implications for your company’s performance. You may ask:

  • What is the role of price and promotion in your overall customer value proposition?
  • How can you maintain, or even improve, price perception in this high-inflation environment?
  • How should you think about your base/promo mix? Should you be more everyday low-cost?
  • Where are you overspending or underinvesting in promotions? How can you capture more value?
  • How do you design the right promotions to maximize ROI?
  • What tools and technologies should you leverage to enable all pricing processes?

Our Consumer Pricing approach is built on a battle-tested framework that enables you to deliver value to consumers across four critical dimensions: pricing and promotion ambition, architecture, execution, and capabilities.

Our three-phase approach begins with a powerful diagnostic that not only gives you a foundational understanding of your price positioning relative to your value proposition, but also “sizes the prize” so you know your full potential. We then help you identify specific actions—and close critical gaps—to capture value and identify additional opportunities. Furthermore, we help you build the internal skills and knowledge you need to maintain and extend your pricing capabilities long into the future.

Qué esperar

Qué esperar

Perception is reality, particularly when it comes to consumers’ perceptions of a retailer’s prices. Statistical analysis, in fact, suggests that creating positive price perceptions is the single most important pricing capability for retailers, by a factor of more than 2x. Other key capabilities include:

  • Having a plan to deal with disruptive forces
  • Tailoring your prices to channels and localities
  • Having the tools and processes needed to deliver dynamic pricing
  • And executing and tracking the ROI of promotions

We start addressing those issues with our B2C Pricing Capability X-Ray. Using scores from a simple online assessment, our Pricing Capability X-Ray measures your company’s pricing capabilities holistically across more than 30 dimensions. The assessment results help us to understand your strengths and development opportunities from Day 1, so we can tailor a pricing strategy for you that applies the most relevant best practices.

We also address the many sector-specific dynamics that affect retail pricing. In grocery, for example, our expertise spans active inventory management and markdowns, promotional activities driven by supplier funding, and many other considerations. In restaurants, we help clients match pricing strategy to menu strategy, factor in the impact of promotions, optimize menu prices, and much more.

We support our retail pricing expertise with a rich set of analytic and diagnostic tools that provide you with a data-supported end-to-end pricing capability, so you can make sure your increasingly perceptive customers perceive, and readily pay for, the full value of what you provide.

Only 11% of fast-moving consumer goods (FMCG) companies meet our definition of top performers—those that have gained market share in the last two years and strongly agree that their companies make excellent pricing decisions. The vast majority (84%) believe their pricing decisions could be improved.

What separates top performers from the rest? One notable finding from our research is that they excel on a key element of pricing strategy: price pack architecture. They are also strong in dynamic pricing and data analytics, and have well-designed operating models characterized by clear roles and decision rights.

Our B2C pricing framework is a comprehensive approach that addresses all those elements, enabling us to help FMCG companies respond to the growing disruption of e-commerce, build greater customer loyalty, and respond effectively to changing market conditions.  

Telcos face a unique set of pricing challenges. First, they need to focus on customer acquisition and employ effective pricing strategies to provide compelling, competitive offers. Second, they need to create a strong base price architecture, using advanced analytics and deep customer insights to understand how to acquire and retain customers.

Our B2C pricing approach helps your company excel at on these critical capabilities. We also address other pricing practices that characterize the best-performing telcos:

  • Building the right product portfolio and offer design
  • Preparing for future disruption through strong digital capabilities, with a particular focus on dynamic pricing
  • Leveraging deep consumer data, supported by systems and processes that enable personalization
  • Gaining greater visibility into your data assets through the use of dashboards and effective reporting processes

In this intensely competitive sector the right pricing strategy can make all the difference. Our expertise and robust set of diagnostics, benchmarks and analytic tools enables you to understand how you stack up today and how much better you could be. Most important, we show you exactly how to close that gap, and how to continue building on your new pricing capabilities. 

Car makers and manufacturers of appliances, consumer technologies and other durables must account for the fact that they often have an indirect relationship with the end consumer and are providing expensive items that are purchased infrequently.

In addition, the markets for external pricing data are somewhat opaque, and to some degree their pricing strategy is more akin to a B2B model,.

We help durables manufacturers develop an effective pricing strategy that takes these dynamics into account, enabling you to achieve the right:

  • Base price and portfolio architecture
  • Trade and promotion strategy
  • Price and promotional optimization
  • Terms and conditions
  • Joint business planning

Our pricing expertise also addresses two other critical needs: an operating model that supports effective pricing decisions, and an industry-best collection of technology enablers that address every facet of your pricing, from initial strategy through teams training and digitalization of key processes. 

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Resultados con nuestros clientes

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