We build Pricing & Revenue Growth Management strategies

We help companies build effective Pricing & Revenue Growth Management strategies. We work with companies to understand their unique value proposition and develop a pricing strategy that maximizes revenue and growth. We also help companies manage their pricing data and analytics to optimize their pricing strategies.

Why is it important to build a Consumer Centric Pricing Strategy?

The world of business is full of many moving parts – markets, consumers, shoppers, retailers, distribution channels and your own company trends. All these are changing at incredible speed, which creates a complex environment for decision making.

With raw-material, energy and commodity inflation, technology disruption, supply chain challenges and geo-political tensions, it is more important than ever to have a clear and forward-looking view of where your company can generate sustainable revenue and profit growth.

A consumer-rooted pricing and revenue growth strategy is an essential pillar of successful business results in today’s increasingly competitive environment. Not only does it help focus the entire organization on critical goals and KPI’s, but it also helps your organization and commercial teams to engage and convince your distributors, retailers, partners and other external and strategic stakeholders. Easier said than done. Indeed, an RGM strategy is a complex initiative to undertake, but offers high rewards and, maybe more importantly, avoids the risks and pitfalls so many businesses fall into along the journey – going after short term growth or ROI opportunities, and eventually missing genuine sustainable profitable growth.

We determine the Consumer Value, the best Communication Strategy and define the optimal Price Range for your brand

We help you determine Perceived Consumer Value, for your Brand and Products,
and suggest their best Value Communication Strategy by identifying the most
important drivers of appeal and Pricing Power for your brand. Then we translate this
into the optimal Price Range to maximize growth and profitability.

This enables you to start from a clear understanding of (by segment or product line):

  • Perceived Consumer Value vs market
  • Relative Consumer Value for current (and future) proposition, incl. new brand
  • Optimal Value Communication Strategy (Pricing Power Drivers)
  • Optimal combination of pricing power drivers to be communicated
  • Optimal Price Range
  • Optimal Price Points
  • Volume, Revenue and Profit impact when Up/Down Pricing
  • Optimal Sizing/Format/Line up
  • Optimal Launch Price for a new Brand or Innovation

We build National and Retailer-level Pricing & RGM Strategies

The “Triple Win” – when the consumer, manufacturer and retailer all gain through the same initiative – is what we always keep front and center. This is at the heart of what we do at PricingOne. Successful, sustainable, Pricing and RGM strategies are based on the understanding of how much Value do your products and your brands create for your end-users: your Consumers. Such strategies are the sum and integration of (15) distinct intervention areas that PricingOne assesses and quantifies, leveraging a diverse array of sales, financials, market trends, competitive, and consumer data, that result in your own and your distributors’ success.

These intervention areas all fall under the 5 levers of Revenue Growth Management:

  1. Consumer Pricing
  2. Pack Price/Size Architecture
  3. Mix priorities
  4. Promotion strategy
  5. Differentiated commercial plans

To achieve this, we uniquely integrate four models: category/brand, shopper sensitivities , proprietary consumer testing, sales, and financial models. This results in powerful, highly predictive, forward-looking simulations that we use internally to build winning commercial plans, bringing all 5 RGM levers to optimal levels.

This integrated approach enables us to quantify and predict Consumer Value, for brands, products, innovations and specific features or benefits. Starting from this, we create fair, data-driven, commercial plans, by bringing prices, mix, promotions and revenue growth levels to optimal levels. When building Retailer-level Pricing Strategies, we include more details on promotion elements such as trade environment alignment, optimal effectiveness & incrementality, or commercial plans that are applied to each of your different retailers, distributors or channels.

Retailer-Level Pricing & Promotion Strategy - Example

We build Regional and Global Pricing Strategies

We identify geographic clusters with common dynamics, then define Pack & Price strategy at cluster level

Beyond National and Retailer-Level Pricing & RGM strategies, we can also build Regional and Global strategies. For those, we focus on Pricing and Governance.

First, we start by creating a geo-clustering of your key markets based on common traits, business, trade, consumer, market and competitive dynamics. Then, we define Pack Price strategy for the lead markets within each geo-cluster. And finally, we develop cluster-level pricing strategies, and manage pricing harmonization via pack-price architecture differentiation.

This approach will ensure an optimal pricing and pack differentiation, whilst managing pricing corridors and trans-national (cross-border) shipments and sustaining competitiveness at every key market level.