Understanding Costco’s messaging code embedded in its price point endings can be dramatically useful for consumers looking for bargains and further inflation-fighting opportunities. For pricers and marketers, it invites admiration and respect for a brand that is immensely successful because it thinks the details through, as the author explains.
Dollar Tree, Inc., has recently done the unthinkable: it raised prices on many items from $1.00 to $1.25. If the price that's in the company name, on the wall, on the corporate letterhead, and is seemingly the brand won't stand, what next? In most business-as-usual environments psychological price points like “everything is $1” have a role to play. However, the current environment is anything but business-as-usual, as the author explores.
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.
Rapid changes in consumer and customer demand will require consumer goods companies—much like companies in other highly dynamic industries—to reset their revenue management practices in order to survive the coronavirus pandemic and thrive in the future beyond it, 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.
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.