This article is an excerpt and sneak preview from the new book by Dr. Hermann Simon and Professor Martin Fassnacht entitled “Price Management – Strategy, Analysis, Decision, Implementation” (New York: Springer Nature 2019, 558 pages). Detailed author biographies are included at the end of the piece.
Which price and price differences can Consumer Packaged Goods (CPG) companies actually control, and what does the report of higher prices really mean? In this article, the author will explore how much control CPG companies actually have over their prices, which prices they should attempt to manage, and best practices for successfully executing these strategies.
In a non-tendered market brand premium will protect prices and brand owners. However, tendering opens the market to all parties, including the competitors with a low-cost position and weak branding. The switching curve, as the author explains in this article, presents a method to assess the incumbents’ and the challenger’s position, quantify the impact of a challenge, and derive the appropriate pricing measure in response.
How can digital pricing tools support pricing in B2B sales? In the following interview, Dr. Kajetan Zwirglmaier, Partner at Simon-Kucher & Partners, explains. He also highlights the role machine learning and artificial intelligence play in this context.
Bryan Eisenberg recently published the book “Be Like Amazon: Even a Lemonade Stand Can Do It” (co-authored by Jeffrey Eisenberg and Roy H. Williams) outlining some of the eCommerce giant’s most successful strategies. In this article, the author explores some of Amazon’s pricing strategies outlined in the book, and provides tips for how eCommerce pricers can implement these strategies in their own pricing tests.
Bait-and-surcharge pricing, marketing an attractive price to gain consumer interest and adding mandatory fees at the time of purchase, is becoming the norm in many industries. In this article, the author explores this tactic and why it is unethical, but also why it is difficult for companies to abandon due to the effects it has on market competition and customer perception.
In this article, the author explores the relationship between strategic pricing and commercial efficiency goals. Commercial efficiency depends on simultaneous activities supported mainly by a team prepared to apply a strategic price management aiming to generate credibility and confidence in the market. Without it, in an increasingly dynamic and crowded market, a company will hardly be able to survive for long, as this article explains.
In this two-part article, the author discusses value-based pricing from both an organization-wide view and more specifically from the view of the product manager. He begins by reviewing what a value-based product strategy is, how it helps make better decisions, and helps differentiate your products from the competition. In the second part of the article, he explores the six common missteps product managers make about value and provides best practices for how to avoid these errors
In this article, the author examines new product pricing during the multiple stages of product development and market evolution. He uses the global mobile device market as a case study to demonstrate the application of different pricing strategies by various players in this highly competitive space.
Netflix prices are going up. This week, the streaming service raised the prices of all three of its US plans, constituting a jump of between 13 and 18 percent – the biggest price hike since Netflix launched in 2007. Mark Billige, pricing specialist and Managing Partner at Simon-Kucher & Partners, explains how Netflix’s smart approach is key to gaining customer acceptance.