In this article, the author demonstrates the use of Design-to-Value (DTV) and Cost Integrated Conjoint Analysis as an approach for delivering winning product pricing strategies with high value to cost ratios. This article draws upon recently completed pricing consulting projects to illustrate the effectiveness of this approach.
Three factors will ultimately determine how prepared the chemicals sector will be for the post-COVID-19 era: how well the companies understand the current effects of the COVID-19 crisis, how the companies cope with uncertainty in the meantime, and how well they seize five key opportunities to gain a competitive advantage.
In this case study, the author outlines a portfolio optimization project for Oberbayerische Volksblatt (OVB) Rosenheim. This project helped the company transition from a confusing showcase of possibilities to a subscription store that helps customers decide. The emphasis on behavioral selling has increased the company’s portfolio value by 36%.
While COVID-19 has ravaged much of Europe and the Americas, the world can look to Japan for a formula for long-term survival in turbulent times. Harvard Professor Hirotaka Takeuchi, author of “The Wise Company: How Companies Create Continuous Innovation,” offers insight into the Japanese model. These tactics can be very useful to pricers in multiple industries looking for innovating ways to weather the economic storms caused by the COVID-19 pandemic.
Back in 1597 Sir Francis Bacon opined that knowledge itself is power. And with the correct data, analytics, and a framework of key processes, it’s possible to leverage the knowledge of what a market competitive price should be to avoid overspending, as the author explains.
We are in unchartered waters of a global pandemic and macroeconomic uncertainty. In this environment, how should businesses adjust their strategies to best address the unpredictable market? Are price cuts – or price increases – warranted to protect growth and margins?
Nike’s digital strategy has been building towards a dream of personalization at scale. The lynchpin of this strategy is the Nike membership program, which allows Nike to digitize customer interactions. Their app ecosystem allows Nike to collect data on customers that power personalized commerce experiences. One of those apps is Nike Training Club. In this article, the author explores how Nike employs Freemium strategies to engage new users and then moves into personalized subscriptions, product sales and more to maintain customer relationships.
All it takes is a cursory look at the news to find plenty of examples of the pricing issues of well-known companies being covered in the public sphere. These examples can help us to determine which pricing concerns are most important to management. While any pricing concern could be most important to a given company at a given time, there are a few recurring themes across industries.
One of the business impacts clearly demonstrated during the COVID-19 crisis is that, due to a combination of the pandemic’s economic impact as well as the accelerated rate of commercial digitalization, Commercial excellence 1.0 is dead. Long live commercial excellence 2.0. This new version is fast, furious, focused on impact, grounded in pricing science, and leveraging technology for efficiency, as the author explains.
A pricer’s job is to capture value, but we tread a fine line between optimizing short term revenues and jeopardizing customer trust by becoming what is labelled as “greedy.” In this article, the author explains what constitutes “greed” in pricing provides strategies to help pricers avoid these tactics.