This course is designed to help Pricing and Revenue Management Practitioners bridge the gap between Pricing and Revenue Management and to take a more holistic approach to solving their organization’s pricing challenges. It offers a comprehensive overview of 5 core skills, all of them applied to case studies, to help you become more successful in your role.
The practice of Revenue Management strategy requires that you dive deeper into how capacity constraints in your supply chain and internal operations impact pricing decisions. We are going to provide tools and approaches to help you define and solve those problems. However, we show that tools alone are not enough to be successful as a RM Manager. You need to think about the entire value chain where everyone in the business should be involved and working together. The real change is a mindset change where you will be guided to think about Pricing and RM Management in a holistic way.
Participants who complete the course will be equipped with the knowledge and tools to tackle key pricing challenges in today’s environment. It is suited for Pricing and Revenue Management practitioners of all levels of competency looking to upgrade skills or jump-start their implementation plan.
Section 1 – Course Overview
Define our structured approach of a Pricing Strategy.
Recognize the differences between Pricing and Revenue Management.
Section 2 – Revenue Management Introduction
Illustrate the concept of Revenue Management through a pioneer: The Airline industry.
Introduce a key concept: The Design of Offers.
Section 3 – Break Even Analysis
Illustrate the concept of Break Even with a Price vs Volume example.
Apply the Break Even to a case study to develop a better understanding of price volume trade offs.
Section 4 – Clustering
Use Clustering analysis on caste study data to segment customers and have a better understanding on how to approach these customers to accomplish your Pricing and Revenue Management objectives.
Use boxplots to represent the range and dispersion of prices (or margins) and thus provide an efficient way to analyze your price structure across (micro) segments and develop effective tactics.
Section 5 – Association Rules
Introduce the Association Rules and apply them to a case study to make better decisions on bundling and promo design.
Perform a sensitivity analysis to assess how a bundle promotion will affect the margin.
Section 6 – Constrained Optimization
Solve a Linear Programming case study through graphical method to get a better understanding of the objective function and the constraints.
Run a sensitivity analysis to help you define more complex optimization problems and develop more creative solutions when capacity constraints and pricing strategies intersect.
Section 7 – Multinomial Logistic Models (MNL)
Define the concept of Linear Regression and Logistic Regression that are the core of an MNL model.
Use a case study to understand every step of the pricing process.