Competitive Pricing Strategy for a Fast Food Company
Today, businesses use a variety of pricing strategies depending on their unique business goals and objectives. However, in today’s competitive marketplace, it is important to have the right pricing strategy to maximize sales and profits. Also, businesses need to constantly monitor competitors’ pricing strategies and plans in order to have a competitive advantage in the market. This is where the real power of competitive pricing strategy comes in. Major food and retail companies are considering competitive pricing strategies to price their products. This success story explains how our competitive pricing strategy helped a fast food company gain a competitive advantage in the market.
Deciding the right ‘price’ for a product is a challenging task for companies. If you are facing difficulties in pricing your products or services, our experts can help. Request a FREE proposal to know how our competitive pricing strategy will help you efficiently price your product to yield maximum profits.
Business Challenge
The client is a fast food company based out of Canada. As they were new to the Canadian fast food market, they faced difficulties in efficiently pricing their products. Also, the client noted that Canadian customers were very selective regarding purchases due to their knowledge of the monetary value of products. The client, therefore, was facing difficulties in competitively pricing their products according to the current market demand and in attracting new customers. They approached Infiniti Research to leverage their expertise in offering competitive pricing strategy solution.
With Infiniti’s competitive pricing strategy solution, the client also wanted to:
- Identify what similar fast food companies are charging for their products and set prices according to current market demand
- Respond faster to their competitors’ actions and better position their company in the Canadian fast food market.
- Attract customers who are price sensitive and increase the customer satisfaction level
- Compete much better in the Canadian fast food industry and maximize profits with each price change.
Solutions Offered and Value Delivered
The experts at Infiniti Research conducted a four-phased approach. This involved conducting a thorough Canadian market analysis, analyzing the client’s target audiences, identifying direct and indirect competitors, and devising a pricing strategy and execution plan. As the client was new to the Canadian fast food market, the experts recommended the client to provide an introductory offer and discounts to attract customer segments.
With the insights obtained, the experts helped the client to decide competitive prices for their products. This helped them attract new customer segments. Also, the insights obtained from Infiniti’s competitive pricing strategy engagement helped the client implement a flexible pricing strategy to adapt to the unexpected price fluctuations in the market. Furthermore, providing introductory offers and discounts helped the fast food company to attract new customers.
The client was able to exceed their revenue expectation and gain a competitive edge in the Canadian fast food market within one year of entering the new market. Moreover, with Infiniti’s competitive pricing strategy engagement, the company was able to achieve average savings of 27.3%.
Aligning prices with market demand doubles revenue for companies. Wondering how? CONTACT US to know how our competitive pricing strategy can help you align your products’ prices with the market demand to maximize profitability.
Advantages of Competitive Pricing
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