Optimizing the pricing and promotion strategy for a large brand is a challenging topic:
- A myriad of different variables, market situations, channel influences, etc. cloud the cause / effect relationships
- Existing data sometimes is not very precise and/or necessary information may be missing making it difficult to draw meaningful conclusions
- Often, people in an organization hold strong, sometimes opposing beliefs on this topic and there are few explicit, and commonly held strategies
As a result, despite their obvious importance and the intense attention they receive, pricing and promotion strategies in many leading consumer products companies are made primarily on the basis of gut feel, perceived necessity, and the dynamics of a deal.
Our experience suggests that pricing and promotion decisions at the strategic level can be significantly improved by examining some of the underlying factors that determined the outcome of different pricing and promotion strategies. This presentation outlines some our key learnings that clients have used to significantly enhance the effectiveness of their pricing and promotion strategies.