When I started my career in brand management, I learned that marketing is filled with helpful maxims like ‘AIDA’ (marketing adoption process: attention, interest, desire and action), the ‘four p’s of marketing’ (product, price, place and promotion). One of the simplest and useful lessons my director taught me was “the best way to grow the bottom line is to increase the topline.”
There’s only a few ways to do this: raise price, grow volume or cut price promotion. The direction is simple, but the devil is in the details.
How do we know when you can or should take a price increase? Can you cut price promotion? If so, by how much? Are we priced right today? All our SKUs in all channels? Are we pricing based on our channel strategy or merely at the whim of our most demanding customer?
To answer these pesky questions, analysis is surely part of the solution, but its only the first of many steps. Remember when you received your first pricing study? 100+ pages of tables, graphs and statistics… Then you hand it to sales and ask them to do something with it. We’ve come a long way from that, right?
Edgewood works with clients to take an integrated approach to pricing and promotion issues in the context of the entire retail marketing mix to optimize both short term financial efficiency and longer term strategic effectiveness. We call this holistic approach Retail Marketing Mix Optimization or RMO™.
Actionable insights on consumers, shoppers & targets for your brand, category and customers
• Shopper Education
Improve shopability, distribution and shelf productivity
Brands and retailers can maximize ROI and achieve strategic goals
• Pricing Optimization
Earn a seat at the table to control your own destiny at retail
For pricing projects, we start with analysis of price elasticity, price gaps and thresholds; then go well beyond that to help ensure your pricing tactics will be strategic, accretive and implementable. With our integrated RMO approach you can have more confidence your pricing strategy will be consistent with and support your retail channel strategy
Just as important as defining your long term strategy is to set a path to your ultimate goal by breaking up your moves into short term, implementable steps along the way. Drastic changes should not be implemented in one fell swoop to avoid significant risk of competitive response. Likewise, fear of failure should not keep you from embarking on the right long term strategy for your business.
We also know how important it is to help our clients craft a selling story that incorporates pricing strategy in conjunction with promotion strategy, thought leadership and go to market strategy. These are just a few key steps we take to maximize both your strategy and effective implementation.
To learn more, contact us at 973-644-9788 or firstname.lastname@example.org.