Today, we live in an era where the adoption of smart & competitive pricing strategies can catapult new brands and retailers to quick success. At the same time, the failure to project the right brand image through effective pricing can seriously destabilize the prospects of business establishments. ‘Competitive Pricing’ is an essential cog of a product positioning and branding strategy and has a long-lasting impact on customer loyalty and consumer engagement. A robust pricing strategy acts as a catalyst that helps manage profitability while ensuring the brand’s price image reverberates through all its marketing campaigns.
Here are a few reasons why competitive pricing can leverage your market success:
- Helps you stay ahead of the global competition
- Offers price increment opportunities
- Improves profit margins
Client’s Background
The client- a leading player in the FMCG industry in the U.S.
The Challenge
Owing to the intense competition from FMCG companies all over the globe, a multibillion-dollar FMCG industry player realized the need to make better pricing decisions to stay ahead of the curve. Needless to say, the competition in the FMCG market is on the rise and leading FMCG industry players are on the constant lookout for new opportunities and pricing frameworks that can help them stay ahead of the competition.
Our Approach
A detailed assessment of the competitor’s pricing strategies enabled the FMCG industry player to gain detailed insights into the pricing strategies adopted by market leaders. Our experts developed a structured approach to competitive pricing, which played a major role in enhancing the FMCG company’s bottom line. The competitive pricing research methodology leveraged the use of competitive intelligence to gather insights on the competitor’s strategies with regard to their product offerings.
Business Impact
Following the detailed assessment of pricing strategies, a unique competitive pricing strategy was devised to empower the FMCG industry player to differentiate their brand by setting unique prices for their products. The adoption of a holistic, intelligent competitive pricing solution that customarily aligns itself to the company’s business goals and the market dynamics enabled the FMCG industry player to break through the cluttered market space with a unique and convincing proposition in terms of pricing.
The implementation of the new competitive pricing strategy also improved their competitiveness, leading to the generation of $45 million in annual revenue. As a result, the FMCG industry players have surpassed the global competition by successfully capturing a top spot in the global market space by enhancing both customer satisfaction and customer retention levels.
