Many retailers underestimate the value of coordinating decisions on pricing and promotions. A new pricing analytics approach can help.
Price reduction is a tool for companies to encourage the sale of their products. However, to generate greater effectiveness from promotional campaigns, there are several key questions that must be answered when designing and implementing promotional campaigns, as the author explains.
Many consumer-packaged-goods companies are stymied because they do not know how (or think it will be too hard) to make the leap toward much greater transparency on the true impact of promotions. The reality is that getting quick results is feasible. CPG companies are learning that the insights derived from advanced analytics capabilities enhance promotion performance—and the bottom line, as the authors explain.
For some organizations, the COVID-19 pandemic has created a crisis, while for others, it has created market opportunities. For all, it has forced quick and difficult pricing decisions. Price gouging, price promotions and discounts, and dramatic price increases and decreases have all occurred within the first months of COVID-19 reaching the European and American continents. Which tactic to execute, if any, can be revealed through thoughtfulness and analysis.